Bernstein Sees Sharp Slowdown in Yum!'s (YUM) Chinese Operations, But Maintains Outperform
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Price: $152.99 +0.43%
Rating Summary:
19 Buy, 23 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
19 Buy, 23 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Shares of Yum! Brands (NYSE: YUM) are underperforming the broader stock market Tuesday as Bernstein's Sara Senatore warned of a sharp slowdown in the company's same-store sales within China, where the company makes nearly 42 percent of its profit.
Senatore believes slowing data points in China and Yum!-specific figures may now be elevating fears related to the impact of slowing demand. The analyst said recent concerning sales results from within McDonald's (NYSE: MCD) Chinese unit confirm weakness in Yum! comparables.
Senatore is modeling for Yum! to issue comps which will be up in the low-double-digit range this quarter, and in the high-single-digit range during the back half of 2012. The Bernstein analyst warned comps will likely become more difficult later this year.
She now sees Yum! posting FY13 EPS of $4, down from $4.14 previously.
Despite the worrisome commentary, Bernstein maintains an Outperform rating and $85 price target on shares of Yum!.
To track all the market-moving analyst calls on shares of Yum!, visit our Analyst Ratings page.
Senatore believes slowing data points in China and Yum!-specific figures may now be elevating fears related to the impact of slowing demand. The analyst said recent concerning sales results from within McDonald's (NYSE: MCD) Chinese unit confirm weakness in Yum! comparables.
Senatore is modeling for Yum! to issue comps which will be up in the low-double-digit range this quarter, and in the high-single-digit range during the back half of 2012. The Bernstein analyst warned comps will likely become more difficult later this year.
She now sees Yum! posting FY13 EPS of $4, down from $4.14 previously.
Despite the worrisome commentary, Bernstein maintains an Outperform rating and $85 price target on shares of Yum!.
To track all the market-moving analyst calls on shares of Yum!, visit our Analyst Ratings page.
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