Taking a look at the company’s 8-K reporting, they reported fourth-quarter GAAP operating profit growth of 14%. The company was also able to deliver fourth-quarter core operating profit growth of 27% and are on track with strategic transformation to accelerate growth. Full-year GAAP earnings per share from continuing operations was $2.48, which is an increase of 18%. Overall, these are great numbers and show that the company has the ability to grow in the near future. More research and historical trends are needed for longer term growth.
Now, taking a look at the chart using the monthly time frame, we can see that price has done nothing but increase of the years. This could be contributed to the fundamental factors such as how the company’s run and the numbers over time. The chart just shows how healthy the company is and how people view the company over the long term. However, I would still combine all of your data points to determine a well rounded opinion before going any further with the stock.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Yum Brands income statement, its balance sheet, and the statement of cash flows. Potential Yum Brands investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Yum Brands investors may use each financial statement separately, they are all related. The changes in Yum Brands's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Yum Brands's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Yum Brands
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Yum Brands performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Yum Brands shares is the value that is considered the true value of the share. If
the intrinsic value of Yum is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Yum Brands. Please read more on our
fundamental analysis page.
How effective is Yum Brands in utilizing its assets?
Yum Brands reports assets on its Balance Sheet. It represents the amount of Yum resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Yum Brands aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Hotels, Restaurants & Leisure space. To get a better handle on how balance sheet or income statements item affect Yum volatility, please check the breakdown of all its
fundamentals.
Are Yum Brands Earnings Expected to grow?
The
future earnings power of Yum Brands involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Yum Brands factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Yum Brands
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Yum
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Yum Brands earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Yum Brands dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Yum one year expected dividend income is about USD1.8 per share.
At this time, Yum Brands'
Dividend Payout Ratio is very stable compared to the past year. As of the 17th of April 2024,
Dividend Paid And Capex Coverage Ratio is likely to grow to 4.28, though
Dividends Paid is likely to grow to (644.1
M).
Investing in dividend-paying stocks, such as Yum Brands is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Yum Brands must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Yum Brands. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Yum Brands Gross Profit
Yum Brands Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Yum Brands previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Yum Brands Gross Profit growth over the last 10 years. Please check Yum Brands'
gross profit and other
fundamental indicators for more details.
Detailed Outlook On Yum Brands
Risks
For a full list of risks, take a look at the most recent 10-K filing as this will have the risks, along with detailed information about them. For now, here are a couple to keep in mind while you’re completing your research. Frist, as stated in the introduction, the negative pressure to fast food could certainly have a negative long term affect. This is no excuse however as people will still want their fast food. Secondly, the amount of competition in this space is insane and has to be monitored closely, as it only takes on thing to change the tide. Lastly, brand image is key because if people feel the environment and quality of food is slipping, they will no longer purchase their food there.
Conclusion
It’s important to complete your own research in these types of market places because there are so many options. I highly recommend diving deep into the financials and comparing everything against the competition. If you still have questions as the end, reach out to an investing professional as they can help point you in the right direction. This may not be for everyone portfolio, but there still could be decent amounts of growth.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Yum Brands. Please refer to our
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