Yum Brands fourth quarter earnings 2017

Earnings


Yum Brands on Thursday posted fourth-quarter profit that beat analyst estimates, helped by higher demand for fried chicken at its KFC restaurants.

The company said net income rose to $436 million, or $1.26 per share, in the quarter ended Dec. 31, up from $303 million, or 83 cents per share, a year earlier.

Excluding items, the company earned 96 cents per share, topping analysts’ average estimate of 80 cents.

Total revenue fell 16.4 percent to $1.58 billion, lower than the analysts’ estimate of $1.59 billion.

Yum also said it will buy a 3 percent stake in online food-ordering company Grubhub. The $200 million investment in Grubhub is expected to bolster sales of pickup and delivery at KFCs and Taco Bells. As part of this partnership, a Yum executive will join GrubHub’s board.

Grubhub’s stock surged on the announcement. Yum’s stock was down about 1 percent.

Here’s what Yum reported compared with projections by a Thomson Reuters survey of analysts:

  • Adjusted EPS: 96 cents ex. items vs. 80 cents.
  • Revenue: $1.58 billion vs. $1.59 million.
  • Overall same-store sales: Up 2 percent vs. 2.4 percent growth.

Overall same-store sales at all of Yum Brands’ restaurants, which include KFC, Taco Bell and Pizza Hut, rose 2 percent, just shy of analyst expectations of 2.4 percent, according to StreetAccount.



Source link

Products You May Like

Articles You May Like

J. Tomilson Hill says Chinese museums are buying up the world’s art
The Netflix naysayers were wrong
Strong economy drives performance in high yield bonds, leveraged loans
When it comes to difficult financial tasks, few people ask for help
Uber raises $2 billion in debut junk bond sale ahead of IPO

Leave a Reply

Your email address will not be published. Required fields are marked *