We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
YUM! Brands (YUM) Q4 Earnings Miss, Revenues Top Estimates
Read MoreHide Full Article
YUM! Brands, Inc. (YUM - Free Report) reported mixed fourth-quarter 2021 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The top line beat estimates for the ninth straight quarter.
The company’s results in the fourth quarter benefited from strong digital sales, robust unit development and a diversified global business model. During the quarter, the company reported digital sales of more than $6 billion. In 2021, the company recorded digital sales of $22 billion.
David Gibbs, CEO, said “We opened an astounding 4,180 gross units in 2021, marking the strongest growth year in Yum!'s history and setting a restaurant industry record for unit development. We also reached new heights in digital sales that topped $22 billion. I’m confident and energized heading into 2022, which marks Yum!’s 25th anniversary, as we continue to build the world’s most loved and trusted brands while delivering lasting value for our stakeholders.”
Earnings and Revenue Discussion
During fourth-quarter 2021, the company’s adjusted earnings of $1.02 missed the Zacks Consensus Estimate of $1.08. In the prior-year quarter, the company had reported adjusted earnings of $1.15.
Quarterly revenues of $1,890 million surpassed the consensus estimate of $1,873 million. The top line increased 8% year over year. The upside can be attributed to an increase in company sales and a rise in franchise and property revenues.
Worldwide system sales — excluding foreign currency translation — improved 9% year over year with Taco Bell, KFC and Pizza Hut increasing 11%, 10% and 4%, respectively, year over year.
YUM! Brands primarily announces results under four divisions — KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
For fourth-quarter 2021, revenues from KFC totaled $794 million, up 12% year over year. Comps in the division increased 5% year over year against the year-ago quarter’s decline of 2%.
The segment’s operating margin declined 10 basis points (bps) year over year to 37.5% primarily due to an increase in general and administrative expenses and higher company restaurant expenses. In the quarter under review, KFC Division opened 904 gross new restaurants.
At Pizza Hut, revenues amounted to $281 million, down 3% on a year-over-year basis. Comps increased 3% in the reported quarter versus a 1% fall in the prior-year quarter.
The segment’s operating margin expanded 50 bps year over year to 29.2%. The upside was driven by solid same-store sales. Pizza Hut Division opened 571 gross new restaurants during the fourth quarter.
Taco Bell’s revenues were $684 million, up 9% from the year-ago quarter’s levels. Comps in the segment increased 8% year over year compared with 1% growth in the year-ago quarter. Its operating margin declined 490 bps year over year to 28.9%. The downside was due to higher general and administrative and company restaurant expenses, partially offset by comps growth.
Taco Bell opened 195 gross new restaurants in the quarter under review.
The Habit company sales amounted to $131 million during the third quarter. Comps in the division increased 11% year over year. In the quarter, the company opened eight gross new restaurants in the United States.
Other Financial Details
As of Dec 31, 2021, cash and cash equivalents totaled $486 million compared with $730 million on Dec 31, 2020. Long-term debt at the end of the reported quarter was $11,178 million compared with $10,272 million at 2020-end.
MarineMax sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 55.8%, on average. Shares of the company have increased 7.3% in the past year.
The Zacks Consensus Estimate for MarineMax’s 2022 sales and EPS suggests growth of 13.9% and 16.2%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth of 42.9%. Shares of the company have increased 32.2% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 10.4% and 255.6%, respectively, from the year-ago period’s levels.
Tapestry carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 29%, on average. Shares of the company have increased 3.2% in the past year.
The Zacks Consensus Estimate for Tapestry’s 2022 sales and EPS suggests growth of 15% and 18.5%, respectively, from the year-ago period’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
YUM! Brands (YUM) Q4 Earnings Miss, Revenues Top Estimates
YUM! Brands, Inc. (YUM - Free Report) reported mixed fourth-quarter 2021 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The top line beat estimates for the ninth straight quarter.
The company’s results in the fourth quarter benefited from strong digital sales, robust unit development and a diversified global business model. During the quarter, the company reported digital sales of more than $6 billion. In 2021, the company recorded digital sales of $22 billion.
David Gibbs, CEO, said “We opened an astounding 4,180 gross units in 2021, marking the strongest growth year in Yum!'s history and setting a restaurant industry record for unit development. We also reached new heights in digital sales that topped $22 billion. I’m confident and energized heading into 2022, which marks Yum!’s 25th anniversary, as we continue to build the world’s most loved and trusted brands while delivering lasting value for our stakeholders.”
Earnings and Revenue Discussion
During fourth-quarter 2021, the company’s adjusted earnings of $1.02 missed the Zacks Consensus Estimate of $1.08. In the prior-year quarter, the company had reported adjusted earnings of $1.15.
Quarterly revenues of $1,890 million surpassed the consensus estimate of $1,873 million. The top line increased 8% year over year. The upside can be attributed to an increase in company sales and a rise in franchise and property revenues.
Worldwide system sales — excluding foreign currency translation — improved 9% year over year with Taco Bell, KFC and Pizza Hut increasing 11%, 10% and 4%, respectively, year over year.
Yum Brands, Inc. Price and EPS Surprise
Yum Brands, Inc. price-eps-surprise | Yum Brands, Inc. Quote
Divisional Performance
YUM! Brands primarily announces results under four divisions — KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
For fourth-quarter 2021, revenues from KFC totaled $794 million, up 12% year over year. Comps in the division increased 5% year over year against the year-ago quarter’s decline of 2%.
The segment’s operating margin declined 10 basis points (bps) year over year to 37.5% primarily due to an increase in general and administrative expenses and higher company restaurant expenses. In the quarter under review, KFC Division opened 904 gross new restaurants.
At Pizza Hut, revenues amounted to $281 million, down 3% on a year-over-year basis. Comps increased 3% in the reported quarter versus a 1% fall in the prior-year quarter.
The segment’s operating margin expanded 50 bps year over year to 29.2%. The upside was driven by solid same-store sales. Pizza Hut Division opened 571 gross new restaurants during the fourth quarter.
Taco Bell’s revenues were $684 million, up 9% from the year-ago quarter’s levels. Comps in the segment increased 8% year over year compared with 1% growth in the year-ago quarter. Its operating margin declined 490 bps year over year to 28.9%. The downside was due to higher general and administrative and company restaurant expenses, partially offset by comps growth.
Taco Bell opened 195 gross new restaurants in the quarter under review.
The Habit company sales amounted to $131 million during the third quarter. Comps in the division increased 11% year over year. In the quarter, the company opened eight gross new restaurants in the United States.
Other Financial Details
As of Dec 31, 2021, cash and cash equivalents totaled $486 million compared with $730 million on Dec 31, 2020. Long-term debt at the end of the reported quarter was $11,178 million compared with $10,272 million at 2020-end.
Zacks Rank & Key Picks
Yum! Brands carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Retail-Wholesale sector include MarineMax, Inc. (HZO - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Tapestry, Inc. (TPR - Free Report) .
MarineMax sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 55.8%, on average. Shares of the company have increased 7.3% in the past year.
The Zacks Consensus Estimate for MarineMax’s 2022 sales and EPS suggests growth of 13.9% and 16.2%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth of 42.9%. Shares of the company have increased 32.2% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 10.4% and 255.6%, respectively, from the year-ago period’s levels.
Tapestry carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 29%, on average. Shares of the company have increased 3.2% in the past year.
The Zacks Consensus Estimate for Tapestry’s 2022 sales and EPS suggests growth of 15% and 18.5%, respectively, from the year-ago period’s levels.