Marcy Cowan
678-444-4161
Marcy Cowan
678-444-4161
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YUM Brands reveals its Quarter Three earnings tonight, with the earnings call tomorrow, October 6 2010.
The Wall Street Journal noted today the fact that YUM may hit the symbolic benchmark of 50% of earnings generated outside of the United States, either this quarter or next.
Their international focus is great and smart; YUM certainly looks smart developing and working its success in the China Market over the last decade. As we know, developing nations will have higher population and likely economic growth than the US/ Europe.
Yum Brands also is right at the 80% franchised units world-wide threshold, too.
KFC and Pizza Hut struggled greatly in the US since 2008, although they will say the Pizza Hut $10/any/any focus and its menu reengineering helps its sales trend. Since 2006, YUM has resisted per brand sales and margin breakouts, preferring instead to show combined world sector sales and margin trends.
We urge YUM and the security analysts that cover it to disclose and ask for per brand, US and outside of US franchisee and franchisor sales and restaurant margin data for both company and franchisee owned operations.
It's material enough of an issue, with 80% of the units franchisee operated, and will enhance worldwide decision making and analysis. YUM is a very complicated worldwide company.