Wall Street brokerages expect Yum! Brands, Inc. (NYSE:YUM) to post $1.38 billion in sales for the current quarter, according to Zacks Investment Research. Six analysts have made estimates for Yum! Brands’ earnings. The highest sales estimate is $1.40 billion and the lowest is $1.36 billion. Yum! Brands reported sales of $1.44 billion during the same quarter last year, which would suggest a negative year-over-year growth rate of 4.2%. The firm is scheduled to announce its next earnings report before the market opens on Wednesday, October 31st.
According to Zacks, analysts expect that Yum! Brands will report full-year sales of $5.71 billion for the current year, with estimates ranging from $5.63 billion to $5.76 billion. For the next financial year, analysts forecast that the company will report sales of $5.62 billion, with estimates ranging from $5.48 billion to $5.87 billion. Zacks Investment Research’s sales averages are a mean average based on a survey of sell-side research analysts that that provide coverage for Yum! Brands.
Yum! Brands (NYSE:YUM) last posted its earnings results on Thursday, August 2nd. The restaurant operator reported $0.82 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.74 by $0.08. The company had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.36 billion. Yum! Brands had a negative return on equity of 17.36% and a net margin of 27.95%. Yum! Brands’s revenue was down 5.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.68 earnings per share.
Yum! Brands stock traded down $1.14 during trading hours on Tuesday, hitting $85.78. The stock had a trading volume of 2,118,727 shares, compared to its average volume of 1,767,038. The firm has a market capitalization of $27.22 billion, a price-to-earnings ratio of 28.98, a price-to-earnings-growth ratio of 1.92 and a beta of 0.86. Yum! Brands has a 1-year low of $74.26 and a 1-year high of $92.21.
Yum! Brands declared that its board has authorized a stock buyback program on Friday, August 10th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the restaurant operator to purchase up to 7.6% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.
In related news, CFO David W. Gibbs sold 6,366 shares of the stock in a transaction dated Monday, October 15th. The stock was sold at an average price of $87.87, for a total transaction of $559,380.42. Following the transaction, the chief financial officer now directly owns 47,764 shares in the company, valued at $4,197,022.68. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP David Eric Russell sold 7,340 shares of the stock in a transaction dated Tuesday, September 25th. The stock was sold at an average price of $90.00, for a total value of $660,600.00. Following the transaction, the vice president now owns 25,960 shares in the company, valued at $2,336,400. The disclosure for this sale can be found here. Insiders have sold 20,075 shares of company stock worth $1,779,370 over the last quarter. 0.63% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Asset Advisors Investment Management LLC purchased a new position in shares of Yum! Brands in the 3rd quarter worth about $136,000. Cerebellum GP LLC purchased a new position in shares of Yum! Brands in the 2nd quarter worth about $172,000. Summit Trail Advisors LLC raised its holdings in shares of Yum! Brands by 8,198.7% in the 1st quarter. Summit Trail Advisors LLC now owns 191,782 shares of the restaurant operator’s stock worth $192,000 after purchasing an additional 189,471 shares during the period. Qube Research & Technologies Ltd purchased a new position in shares of Yum! Brands in the 2nd quarter worth about $199,000. Finally, Douglass Winthrop Advisors LLC purchased a new position in shares of Yum! Brands in the 3rd quarter worth about $201,000. Hedge funds and other institutional investors own 71.48% of the company’s stock.
Yum! Brands Company Profile
YUM! Brands, Inc, together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates in three segments: the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company operates restaurants under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food categories.
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