Yum! Brands shares have fallen 10.4% over the past month, raising the question of whether the sell-off presents a buying opportunity. The company reported adjusted second-quarter earnings of $1.62 per share, up 12.5% year over year and beating the Zacks Consensus Estimate of $1.59, while revenues rose 12.2% to $2.17 billion but missed the consensus by 0.6%. Taco Bell delivered 7% same-store sales growth and 19% operating profit growth, though U.S. same-store sales were down 2% quarter to date through July 27 following an industry-wide food safety issue. KFC opened 660 gross new restaurants and increased its restaurant count 7%, but same-store sales advanced only 2%, making restaurant productivity a key focus. Yum! Brands agreed to sell Pizza Hut for $2.7 billion, expecting about $2.3 billion in net proceeds, after the brand's second-quarter system sales declined 2% excluding foreign currency effects and operating profit dropped 14%. The stock trades at 21.1 times forward 12-month earnings, below its five-year median of 23.3 times and the restaurant sub-industry's 22.9 times, and carries a Zacks Rank of 3, or Hold.
Yum! Brands IncMixed earnings with revenue miss and Pizza Hut sale, plus stock down 10.4%.
Domino's Pizza Inc Common Stock
McDonald’s Corporation