Yum! Brands misses Q2 EPS estimates by $0.04

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Yum! This is the first time in four quarters that Yum! Brands ($NYSE:YUM) has missed earnings estimates, and shares fell in after-hours trading. Do you think this will affect Yum! Brands market and earnings in the long term? It is difficult to say how this will affect Yum! Brands in the long term. This is the first time that they have missed earnings estimates in four quarters, so it is possible that this is just a blip.

However, if this trend continues, it could have a negative effect on the company’s market share and earnings.

Market Reaction

Brands stock opened at $122.0 and closed at $119.8, after the company announced that it had missed Q2 EPS estimates by $0.04. Media sentiment was mostly positive, with many commentators noting that the company’s strong performance in China had offset disappointing results in the US.

VI Analysis

Brands, Inc. ($NYSE:YUM) is a global food company with a portfolio that includes some of the world’s most popular brands, including KFC, Pizza Hut, and Taco Bell. The company’s fundamentals reflect its long-term potential. The intrinsic value of YUM! Brands shares is around $126.8, calculated by VI Line. Brands stock is traded at $119.8, a fair price undervalued by 6%.

Summary

Brands reported earnings yesterday for the second quarter and missed estimates by $0.04 per share. This may be due to the company’s strong performance in the first quarter, as well as some positive news items. Brands announced that it would be selling a minority stake in its China business to Ant Financial, an affiliate of Alibaba Group. This will help Yum! Brands to reduce its debt and gain a valuable partner in China’s booming economy. Brands also announced that it would be launching a new line of plant-based foods in partnership with Beyond Meat. This is a growing trend in the food industry and could help to attract new customers to Yum! Brands’ restaurants. Overall, despite missing earnings estimates, Yum! Brands still looks like a strong investment. The company is taking steps to reduce debt and enter into new and growing markets, which should help to drive long-term growth.