** charts before earnings **
** charts after earnings **
2nd day after earnings
Yum! Brands beats by $0.01, misses on revs; raises FY16 core operating growth forecast; China separation on track for completion around Oct. 31 :
- Reports Q2 (Jun) earnings of $0.75 per share, excluding non-recurring items, $0.01 better thanthe Capital IQ Consensus of $0.74; revenues fell 3.1% year/year to $3.01 bln vs the $3.09 bln Capital IQ Consensus.
- Worldwide comps flat.
- China Same-store sales were even, with an increase of 3% at KFC, offset by a decline of 11% at Pizza Hut Casual Dining.
- KFC comps +2%; Pizza Hut comps flat; Taco Bell comps -1%.
- "Yum! Brands delivered second-quarter core operating profit growth of 7% and EPS growth, excluding Special Items, of 9%. Given our strong first-half results and current trends in China, I'm pleased to raise our full-year core operating profit growth forecast to at least 14% from 12% previously. I'm particularly pleased with the continued sales momentum at KFC China, which delivered better-than-expected same-store sales growth of 3%. This represents our fourth-consecutive quarter of positive same-store sales growth at KFC China despite the second quarter being our most difficult of the year from a historical sales overlap standpoint. Importantly, our China Division is off to a good start in the third quarter for both KFC and Pizza Hut Casual Dining, including a return to positive same-store sales at Pizza Hut Casual Dining in recent weeks...
- Outside of China, challenging industry conditions in the U.S. contributed to soft sales results. However, our three brand divisions in the aggregate delivered core operating profit growth largely in-line with our expectations and remain on track to deliver against their full-year core operating profit growth targets."
- This is a transformational year for our company as we remain on track to finalize the separation of our China business with a targeted completion date around October 31, 2016
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