Yum China Soars After Pizza Hut Turnaround Fuels Earnings

They are maintaining their $31 target and market perform rating on the stock, despite its discount to peer-company valuations. Currently, the stock is -4.92% from its 50-Day High and 50.65% from the 50-day low.

Yum! Brands (NYSE:YUM) last released its earnings results on Thursday, February 9th.

"China's comp (+1%) came in above consensus, driven by beats at both Pizza Hut (+2% vs +0% cons) and KFC (+1% vs -2.4% cons)".

In the trailing 12 months period, return on assets ratio of the Company was 14.40% and return on equity ratio was 23.70% while its return on investment ratio was 20.00%. The firm earned $1.28 billion during the quarter, compared to analysts' expectations of $1.27 billion.

Its sales stood at -1.80% a year on average in the period of last five years. Total system sales grew 4%, including growth of 3% at KFC and 9% at Pizza Hut Casual Dining, excluding foreign currency translation ("F/X"). On average, equities analysts forecast that Yum! Brands will post $2.72 EPS for the current year.

A number of analysts recently weighed in on the company. This represents a $1.20 dividend on an annualized basis and a yield of 1.88%. For example, Yum China is driving sales up at KFC on Tuesdays, a typically slower business day, by calling it Members Day and offering weekly incentives. Also, CFO David W. Gibbs sold 7,986 shares of the firm's stock in a transaction on Wednesday, February 15th. KLR Group upgraded Encana Corp (USA) (NYSE:ECA) on Monday, November 7 to "Buy" rating. Shares of Yum China were up more than 8 percent, to $30.53, in afternoon trading on the New York Stock Exchange. Following the transaction, the chief executive officer now owns 36,910 shares of the company's stock, valued at approximately $2,516,154.70.

The company's shares jumped 10 percent in US after-hours trading on Wednesday.

In related news, CEO Brian R. Niccol sold 11,938 shares of the firm's stock in a transaction on Friday, February 10th. The stock was sold at an average price of $68.17, for a total transaction of $813,813.46. The disclosure for this sale can be found here. Cornerstone Advisors Inc. now owns 25,672 shares of the restaurant operator's stock worth $2,331,000 after buying an additional 500 shares during the period. Brands by 6.5% in the third quarter. Brands by 2.0% in the third quarter. For the quarter, shares have been noted at 5.86%. Cornerstone Advisors Inc. increased its position in shares of Yum! Brands by 1.9% in the third quarter.

The company's consensus rating on Reuter's scale remained unchanged from 2 to 2 during a month. Brands by 26.6% in the third quarter.

This stock (YUMC) is ahead of its 52-week low with 29.3%.

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Brand Inc. Investors are expecting that its spinoff from Yum Brands will create more value for the shareholders. The company plans to add 550 to 600 restaurants in 2017.

  • Zachary Reyes