Research Desk Line-up: Zoe's Kitchen Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Yum! Brands, Inc. (NYSE: YUM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=YUM, following the Company's announcement of its financial results on August 03, 2017, for the second quarter fiscal 2017. Yum! reported better than expected results. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Restaurants industry. Pro-TD has currently selected Zoe's Kitchen, Inc. (NYSE: ZOES) for due-diligence and potential coverage as the Company reported on August 17, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Zoe's Kitchen when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on YUM; also brushing on ZOES. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=YUM
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Earnings Reviewed
For three months ended June 30, 2017, Yum! Brands' revenue decreased 4% on a y-o-y basis to $1.45 billion from $1.51 billion in Q2 FY16. The revenue surpassed analysts' expectations of $1.41 billion.
During Q2 FY17, Yum! Brands' general and administrative expenses (G&A) were $247 million compared to $254 million in the same quarter last year.
During Q2 FY17, the Company's operating income increased 1% to $419 million from $415 million in Q2 FY16. For the reported quarter, Yum! Brands' adjusted operating income increased 18.7% to $445 million from $375 million in Q2 FY16.
For the reported quarter, Yum! Brands' effective tax rate was 33.8% compared to 27% in Q2 FY16. During Q2 FY17, the Company's adjusted effective tax rate was 26.3% compared to 27.9% in Q2 FY16.
During Q2 FY17, Yum! Brands' net income decreased 39% to $206 million on a y-o-y basis from $336 million in Q2 FY16. During Q2 FY17, Yum! Brands' diluted EPS decreased 10% to $0.58 on a y-o-y basis from $0.64 in Q2 FY16. For the reported quarter, the Company's adjusted diluted EPS increased 21% to $0.68 on a y-o-y basis from $0.56 in Q2 FY16. The adjusted diluted EPS surpassed analysts' expectations of $0.61.
Yum! Brands' Segment Details
KFC - During Q2 FY17, the KFC segment's revenue decreased 1% to $770 million from $779 million in Q2 FY16. For the reported quarter, the segment's G&A decreased 9% to $85 million from $93 million in Q2 FY16. For the reported quarter, the segment's operating income increased 19% to $243 million from $203 million in Q2 FY16. During Q2 FY17, the segment's operating margin was 31.5% compared to 26.1% in the same quarter last year. The increase was due to same-store sales growth, refranchising, reduced G&A, and higher initial and renewal fee income. During Q2 FY17, the segment's same store sales growth was 3%, at par with growth in Q2 FY16. For the reported quarter, the segment's restaurant margin was 15.7% compared to 14.6% in Q2 FY16.
Pizza Hut - During Q2 FY17, the Pizza Hut segment's revenue decreased 17% to $222 million from $267 million in Q2 FY16. For the reported quarter, the segment's G&A decreased 5% to $54 million from $56 million in Q2 FY16. For the reported quarter, the segment's operating income increased 4% to $85 million from $81 million in Q2 FY16. During Q2 FY17, the segment's operating margin increased 7.8% to 38.1% from 30.3% in Q2 FY16. The increase was due to same-store sales growth, refranchising, reduced G&A, and higher initial and renewal fee income. During Q2 FY17, the segment's same store sales growth was negative 1%, at par with growth in Q2 FY16. For the reported quarter, the segment's restaurant margin was 8.5% compared to 9.4% in Q2 FY16.
Taco Bell - During Q2 FY17, the Taco Bell segment's revenue decreased 2% to $456 million from $464 million in Q2 FY16. For the reported quarter, the segment's G&A decreased 15% to $39 million from $46 million in Q2 FY16. For the reported quarter, the segment's operating income increased 10% to $152 million from $139 million in Q2 FY16. During Q2 FY17, the segment's operating margin increased 3.6% to 33.4% from 29.8% in Q2 FY16. The increase was due to same-store sales growth, reduced G&A including lower litigation costs and refranchising. During Q2 FY17, the segment's same store sales growth was 4% compared to negative 1% in Q2 FY16. For the reported quarter, the segment's restaurant margin was 22.8% compared to 22.3% in Q2 FY16.
Balance Sheet
As on June 30, 2017, Yum! Brands' cash and cash equivalents increased 33.8% to $970 million from $725 million in Q4 FY16. During Q2 FY17, Yum! Brands' long-term debt increased 4.5% to $9.47 billion from $9.06 billion in Q4 FY16.
As on June 30, 2017, the Company's year-to-date cash provided by operating activities decreased 25.2% to $439 million from $587 million in the same period last year. During Q2 FY17, the Company repurchased 5.6 million shares totaling $384 million.
Stock Performance
Yum! Brands' share price finished yesterday's trading session at $75.85, slightly advancing 0.58%. A total volume of 1.22 million shares have exchanged hands. The Company's stock price rallied 6.82% in the last three months, 12.09% in the past six months, and 18.11% in the previous twelve months. Additionally, the stock surged 19.77% since the start of the year. Shares of the Company have a PE ratio of 36.29 and have a dividend yield of 1.58%. The stock currently has a market cap of $26.20 billion.
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