Mixed results for KFC, Yum- shares pitch 4%
The stock and share market inferences are always a curious juncture. Economic vicissitudes or unilateral structures provoke much precedence, which you would not have imagined till it happened. The business of multi-national food joint companies like KFC, YUM or Pizza Hut is no different to this aspect. The market is unabashedly consumer-based, consumer-centric, and rightly consumer-driven. This means the monetary directives are a result of what or how much you consume. The financial spiral or cycle also plays a big deal in this regard. Speculations are always ripe when you have major players operating within one ambit.
That being said, YUM brands, or the acronym YUM pitched in with quite below expected 5 percent decline in its fourth quarter earnings this Monday. This was lighter what most people were expecting. However, the owner of reputed food chains likes Pizza Hut and KFC (Kentucky Fried Chicken) have posted sales which trailed or featured vivid forecasts. Notwithstanding the mixed baggage of results, shares and debentures of the fast food behemoth rallied 4 percent in after a while. YUM reported its earnings to be tentatively around the $321 million mark. This constitutes 70 cents per share as compared with a substantial profit of $337 million. The profit parameters effectuate 72 cents per share system. This mechanism was prevalent last year.
Barring one-time products, the company earned 86 cents per share, which exceeds the much debated Wall Street’s forecast of 80 cents. It might seem surprising that despite momentary lapses or fiscal slowdowns, the net grid has remained intact. Revenue soared to $4.18 billion. However, it failed to comply with or match consensus calls from different analysts for a sum of $4.26 billion. Barring currency fluctuations or flip-flops, the global system sales witnessed a stoic increase of 3 percent.
Yum said the same-store sales fell by 4% in China and 2% in the U.S. The KFC outlets dropped 4% during this fourth quarter, which marks an improvement considering its sales declined by 15% in that year. The corporation acknowledged that sales in China were categorically “impacted” by the poultry supply fiasco in December. It was also by resultant reports of avian flu. While the last year enormous challenges, YUM CEO, David Novak is pleased with a sustainable progress while entering the 2104 threshold. He said that the management unit is confident of the resources and people to deliver a minimum 20 percent revenue growth this year.
