YUM's Earnings Mixed, China in Focus
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) reported earnings after the bell today. The company
reported EPS of $0.87, beating the Zacks Consensus EPS Estimate
of $0.84, and revenues came in at $2.72 billion, just below the
Zacks Consensus Revenue Estimate of $2.8 billion.
One of the major concerns going into this earnings announcement
was the impact of sales in China. Management stated that
Same Store Sales increased 9% in the first quarter 2014 (analysts
were expecting 9.2%). Moreover, management stated that they
expect to open 700 new restaurants in China during 2014. Overall,
it appears as though the KFC segment has moved pass their poultry
suppliers issues from last year, and are now gaining some
traction in China.
New to the quarter was the revamped breakfast menu in their Taco
Bell restaurants; this was designed to compete with the likes of
). Currently, McDonalds has the largest market share of
fast food breakfast at 30%, but the Waffle Taco, and the AM
Crunchwrap are expected to compete with the traditional McDonalds
But for taco lovers out there, the most important short term news
is the launch of the Spicy Chicken Cool Ranch Doritos Locos Taco,
which is debuting on May 1, 2014!
In afterhours trading YUM has risen over 2% on mild volume,
indicating the streets approval of their EPS beat. Zacks
will have a fully detailed report into YUM's earnings numbers