The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Yum! Brands met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped.
Gross margins were steady, operating margins contracted, net margins shrank.
Yum! Brands booked revenue of $4.15 billion. The 23 analysts polled by S&P Capital IQ wanted to see revenue of $4.12 billion on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $4.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.83. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.82 per share. GAAP EPS of $0.72 for Q4 were 4.0% lower than the prior-year quarter's $0.75 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.0%, about the same as the prior-year quarter. Operating margin was 11.9%, 140 basis points worse than the prior-year quarter. Net margin was 8.1%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.73 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $14.32 billion. The average EPS estimate is $3.57.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,168 members out of 3,296 rating the stock outperform, and 128 members rating it underperform. Among 823 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 803 give Yum! Brands a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Yum! Brands is outperform, with an average price target of $76.58.
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