Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, August 9, 2024

Article Excerpt

YUM! BRANDS INC., $136.79, New York symbol YUM, is a buy for aggressive investors. The company operates over 59,000 restaurants in more than 155 countries. Its main banners are KFC (fried chicken), Pizza Hut and Taco Bell (Mexican food). Franchisees now operate 98% of outlets. Yum opened 894 gross new outlets (it did not report store closures) in the second quarter of 2024. As a result, its revenue rose 4.5%, to $1.76 billion from $1.69 billion a year earlier. However, that missed the consensus forecast of $1.80 billion. On a same-store basis, overall sales declined 1% (excluding currency rates). That decline is mainly due to the conflict in the Middle East, which is hurting sales at Yum’s international division. In fact, the company has temporarily closed about 200 of its restaurants in the Middle East, Malaysia and Indonesia. By chain, same-store sales rose 5% at Taco Bell, but they fell 3% at KFC and 3% at Pizza Hut. Higher taxes and other costs cut earnings…