Jefferies Reiterates Hold on Yum! Brands (YUM) Following 2Q Results
Jefferies reiterates a Hold rating and $76.00 price target on Yum! Brands (NYSE: YUM) following 2Q earnings results. YUM reported 2Q EPS of $0.69 vs consensus of $0.62. The company reiterated 2015 EPS guidance calling for “at least 10% growth”.
Andy Barish commented, "Op EPS $0.69 vs cons $0.62, as cost cuts & better TB SSS offset a China SSS miss (-10% vs cons -8.4%). Guide reiterated for a 2H China recovery and at least +10% EPS for the year, but this will require a significant turn in the China business. While we agree that the potential for significant margin leverage in China is realistic if SSS rebound like the company thinks, our visibility on a big China SSS recovery is fairly limited, keeping us at Hold."
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Shares of Yum! Brands closed at $91.99 yesterday.