Retail

Yum! Earnings Live Up To The Name (YUM)

Yum! Brands Inc. (NYSE:YUM) beat earnings estimates again.  The fast food and faster food giant posted 20% gains to $0.50 EPS on a 4% worldwide system same-store-sales.  It did note a $0.02 EPS boost from foreign currency conversion.  First Call has estimates at $0.45 EPS and $2.44 Billion in revenues. 

Yum! has also raised full-year EPS growth forecast to 13% from 12% based on the continued strong growth from China and YRI divisions: new full-year EPS forecast is $1.65 per share.  The company said it also plans to repurchase $4 Billion in stock over the next two-years.

Share of Yum! closed at a new all-time up 5.6% today at $36.29 with just under an $18.9 Billion market cap.  Shares are up another 3% at $37.50 in after-hours trading.

Very recently. Jim Cramer interviewed the CEO and said this was a buy on any pullback.  We also noted this earlier in the year as a ‘second line defensive stock’ for a crummy market, but it didn’t make the most recent list of defensive stocks over relative valuation and excessive stock performance.

Unfortunately, it appears the earnings conference call is not until tomorrow morning.  Its 2007 conference for analysts and investors is not scheduled until December 12, 2007.

Jon Ogg
October 8, 2007

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