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Yum! Brands, Inc., The Coca-Cola Co Release 4Q Earnings Results

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Yum Brands! And Coca-Cola released their latest earnings reports before opening bell this morning. Yum posted adjusted earnings of 76 cents per share on $2 billion in revenue. Analysts had been looking for 73 cents per share in earnings and $2 billion in sales. In the same quarter a year ago, the fast food chain operator reported $1.98 billion in revenue for the fourth quarter.

Coca-Cola reported adjusted earnings of 37 cents per share, which was in line with the consensus, on $9.4 billion in sales. Analysts had been expecting $9.1 billion in revenue, and the beverage maker reported $10 billion in sales in the year-ago quarter.

Yum! Brands’ per-share earnings rise

Yum! Brands’ GAAP earnings per share for the fourth quarter rose to 76 cents from 66 cents in the year-ago quarter. Same store sales rose 1%, widely missing the consensus of a 2.8% gain. The KFC division recorded an 8% increase in system sales and a 3% increase in same store sales, while the Pizza Hut division saw a 3% increase in same store sales and a 2% decline in same store sales. The Taco Bell Division recorded a 12% increase in system sales and 3% increase in same store sales.

“2016 was a landmark year for Yum! Brands,” said Chief Executive Greg Creed in a statement. “Not only did we complete the spin-off of Yum China as an independent and powerful growth company, but we also launched a new multi-year strategic transformation of Yum! Brands. By being more focused, more franchised and more efficient, we will strengthen and grow our KFC, Pizza Hut and Taco Bell brands around the world, creating significant long-term value for all our stakeholders.”

Shares of Yum! Brands edged upward by as much as 0.62% to $67 in premarket trading this morning.

Coca-Cola’s unit case volume declines


Coca-Cola’s total unit case volume for the fourth quarter fell 1% year over year. North America and Asia Pacific net revenues each rose 8% year over year, while Europe, the Middle East and Africa net revenues fell 4%. Latin America net revenues also declined 4%, and bottling investments net revenues plunged 20% year over year. Unit case volumes fell in Latin America but were up 1% each in Europe, the Middle East and Africa and in North America. They were flat in the Asia Pacific region, and bottling investment case volume plunged 25%.

The company expects full-year adjusted earnings for 2017 to fall by 1% to 4% year over year. In 2016, Coca-Cola reported $1.19 per share, and the consensus for 2017 currently stands at $1.95 per share. The company projects a 12% to 13% decline in revenue for this year.

Shares of Coca-Cola ticked downward by as much as 0.64% to $41.75 in premarket trades this morning.

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