YUM! Brands Delivers Delicious Results!
August 27, 2023
☀️Earnings Overview
On August 2, 2023, YUM! BRANDS ($NYSE:YUM) reported their earnings results for the second quarter of FY2023, as of June 30 2023. Revenue for the period totaled USD 1687.0 million, showing a 3.1% increase from the same quarter the previous year. Net income also surged 86.6% to USD 418.0 million year-over-year.
Price History
YUM! BRANDS is a global food company, operating some of the world’s most popular restaurant brands such as KFC, Taco Bell and Pizza Hut. On Wednesday, investors were pleased with YUM! BRANDS as their stock opened at $133.9 and closed at $135.0, only slightly down by 1.0% from the previous closing price of $136.4. The company’s stock has been increasing in value over the past year, thanks to its strategic plans and successful expansion into the Asian market.
This is a testament to the hard work of YUM! BRANDS’ management team and the delicious results they are delivering to shareholders. As the company continues to invest in its brands and expand its reach, investors can look forward to even more success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Yum! Brands. More…
| Total Revenues | Net Income | Net Margin |
| 6.99k | 1.42k | 19.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Yum! Brands. More…
| Operations | Investing | Financing |
| 1.58k | -107 | -1.44k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Yum! Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.85k | 14.28k | -30.12 |
Key Ratios Snapshot
Some of the financial key ratios for Yum! Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.4% | 9.8% | 32.0% |
| FCF Margin | ROE | ROA |
| 18.2% | -16.3% | 23.9% |
Analysis
At GoodWhale, we conducted an analysis of YUM! BRANDS‘ wellbeing. We gave them a high health score of 8/10 based on their cashflows and debt capacity. We judged them to be strong in dividend and profitability and weak in asset and growth. We classified them as ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth. Investors who are looking for consistent dividend payments, strong profitability, and moderate growth may find YUM! BRANDS an attractive investment opportunity. For those seeking greater asset growth and capital appreciation, YUM! BRANDS may not be the right fit. More…
Peers
In the fast food industry, Yum Brands Inc. has to contend with Jiumaojiu International Holdings Ltd, Yum China Holdings Inc, and Restaurant Brands International Inc. All of these companies are fighting for market share in the quick service restaurant industry. This industry is worth billions of dollars, and each company is trying to get a larger slice of the pie. Yum Brands Inc. is the largest player in the industry, but its competitors are not far behind. Jiumaojiu International Holdings Ltd is the second largest player, followed by Yum China Holdings Inc. All three of these companies are engaged in a fierce battle for market share.
– Jiumaojiu International Holdings Ltd ($SEHK:09922)
Jiumaojiu International Holdings Ltd is a leading international wine producer and retailer. The company has a market cap of 19.98B as of 2022 and a Return on Equity of 8.23%. Jiumaojiu International Holdings Ltd produces and sells premium wines under its own brands, which are sold in over 70 countries around the world. The company has a strong focus on quality, innovation and customer service, and is committed to delivering the highest levels of satisfaction to its customers.
– Yum China Holdings Inc ($NYSE:YUMC)
Yum China Holdings Inc is a leading restaurant company in China. It operates a variety of restaurant brands, including KFC, Pizza Hut, East Dawning and Little Sheep. As of December 31, 2020, Yum China had over 8,600 restaurants in more than 1,400 cities across China.
The company’s market cap is 19.64B as of 2022. Yum China’s ROE is 4.27%. The company has a strong presence in China and is well-positioned to continue growing in the country.
– Restaurant Brands International Inc ($TSX:QSR)
Restaurant Brands International Inc is a holding company that operates and franchises quick service restaurants. As of 2022, the company had a market capitalization of 23.36 billion and a return on equity of 52.84%. The company operates through three segments: Burger King, Tim Hortons, and Popeyes. Burger King is the company’s largest segment, accounting for about 60% of total revenue. Tim Hortons is the company’s second-largest segment, accounting for about 30% of total revenue. Popeyes is the company’s smallest segment, accounting for about 10% of total revenue.
Summary
YUM! BRANDS saw a strong quarter for the second quarter of FY2023, reporting total revenue of USD 1687.0 million, a 3.1% year-on-year increase. Net income for the quarter was USD 418.0 million, an increase of 86.6% compared to the previous year. This is a positive sign for investors, suggesting that the company is on the right track and has potential for growth.
Financial indicators such as return on equity and free cash flow are important metrics to consider when investing in YUM! BRANDS, as they will indicate how well the company is using its resources to generate profits and cash flow.
Related Posts
Recent Posts
