Yum! Brands Inc


SKU: YUM-1 Category:


Yum Brands’ stock has been on a solid upward trajectory off-late after the company reported an impressive top-line growth this quarter. Even though it missed out on earnings, the company achieved a 10% system sales increase, supported by 6% unit growth and 5% same-store sales growth which did drive positive sentiment in the markets. KFC did an excellent job of accelerating transaction growth through its omnichannel strategy, which helped to improve comps sequentially from the previous quarter. Taco Bell also performed well financially, translating the top-line growth into remarkable restaurant-level margins. On the other hand, system sales at Pizza Hut U.S., which make up 7% of their operating profit, rose by 2%, driven by a 1% increase in same-store sales. The management aims to ensure they have the ideal value propositions to satisfy customer demand and keep franchisee profitability. Given this effort, new products were introduced, including the Big Dinner Box, a generous family value offering, and the $6.99 medium 1-topping couples deal. We give Yum Brands a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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