Stock FAQs

why did yum stock drop

by Dr. Samara Kohler II Published 3 years ago Updated 2 years ago
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Yum! Brands stock slumped by 5% after the fast-food firm reported disappointing third-quarter earnings and a charge related to its stake in Grubhub, the food-delivery company whose stock lost 43% of its value on Tuesday. The back story.

Investors reacted to quickly deteriorating conditions in the fast-food industry as COVID-19 containment measures forced sharp reductions in customer traffic. The social distancing moves have caused spiking demand for delivered pizza from its Pizza Hut brand.

Full Answer

Is Yum a good investment?

It operates more than 50,000 fast food restaurants nationwide. The 71 RS Rating means Yum stock has outperformed 71% of all stocks over the past year. It's a good number. But market research shows that the best stocks often have an 80 or better RS Rating in the early stages of their moves.Dec 2, 2021

What caused stock prices to drop?

If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy.

Is Yum profitable?

Yum! Brands net profit margin as of December 31, 2021 is 23.92%.

Why does every stock I buy drop?

Any time a large order it placed for Buy, the sell side starts increasing as the demand of Buy has gone up. [Vice Versa is also true]. Once this orders gets fulfilled, the demand drops and hence the Sell price should also lower.Dec 31, 2013

Do you owe money if stock goes down?

The price of a stock can fall to zero, but you would never lose more than you invested. Although losing your entire investment is painful, your obligation ends there. You will not owe money if a stock declines in value.Mar 8, 2022

What happens if you invest $1 in a stock?

If you invested $1 every day in the stock market, at the end of a 30-year period of time, you would have put $10,950 into the stock market. But assuming you earned a 10% average annual return, your account balance could be worth a whopping $66,044.Aug 18, 2021

What company owns Yum Brands?

Yum Brands Inc., is a restaurant company that owns quick-service chains Taco Bell, Pizza Hut and KFC, as well as fast-casual brand The Habit Burger Grill. It is headquartered in Louisville, Ky. Yum Brands was initially part of PepsiCo, which entered the restaurant business in 1977 with the acquisition of Pizza Hut.

What is Yum to KFC?

Brands, Inc. (or Yum!), formerly Tricon Global Restaurants, Inc., is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

How much money does Yum Brands make?

Yum! Brands annual revenue for 2021 was $6.584B, a 16.49% increase from 2020. Yum! Brands annual revenue for 2020 was $5.652B, a 0.98% increase from 2019.

What happens if a stock hits 0?

If a stock's price falls all the way to zero, shareholders end up with worthless holdings. Once a stock falls below a certain threshold, stock exchanges will delist those shares.Mar 23, 2022

Can stocks put you in debt?

So can you owe money on stocks? Yes, if you use leverage by borrowing money from your broker with a margin account, then you can end up owing more than the stock is worth.Oct 26, 2021

What if no one buys my stock?

When there are no buyers, you can't sell your shares—you'll be stuck with them until there is some buying interest from other investors. A buyer could pop in a few seconds, or it could take minutes, days, or even weeks in the case of very thinly traded stocks.

Shares of the KFC parent fell after its third-quarter earnings results came up short

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What happened

Shares of fast-food purveyor Yum! Brands ( NYSE:YUM) were giving investors indigestion today as its third-quarter earnings report missed the mark. Results on the bottom line were below expectations, and the company was forced to write down the value of its recent investment in Grubhub, whose stock has plummeted.

So what

The parent of KFC, Taco Bell, and Pizza Hut said overall comparable sales rose 3% in the period, though total revenue decreased 4% to $1.34 billion, matching estimates. Comps were flat at Pizza Hut and rose 3% and 4% at KFC and Taco Bell, respectively.

Now what

Looking ahead, the company continues to forecast earnings per share of at least $3.75 for the year, which does not include any loss from the Grubhub investment and compares to the analyst consensus at $3.86.

YUM Target Price

YUM price target in 14 days: 114.961 USD* upside and 19.165 USD* downside. (Highest and lowest possible predicted price in a 14 day period)

Yum Brands Inc. ( YUM ) Stock Market info

Recommendations: Buy or sell Yum Brands stock? Wall Street Stock Market & Finance report, prediction for the future: You'll find the Yum Brands share forecasts, stock quote and buy / sell signals below. According to present data Yum Brands's YUM shares and potentially its market environment have been in bearish cycle last 12 months (if exists).

Yum Brands Inc. ( YUM ) Stock Price Prediction, Stock Forecast for next months and years

Below you will find the price predictions for 2021, 2022, 2023, 2024, 2025, 2026.

The COVID-19 epidemic is driving widespread pessimism on Wall Street, but the fast-food chain operator has more exposure to the health crisis than most of its peers

After spending more than a decade travelling the world exploring different cultures and languages, I'm happy to now be contributing to the Motley Fool's mission to make the world smarter, happier, and richer. What's great about exploring business and the economy is the insight it gives you into how things are in the world.

What happened

Shares of Yum! Brands ( NYSE:YUM) were down 15.6% in February, according to data provided by S&P Global Market Intelligence. The struggles of its Pizza Hut brand overshadowed better results from its KFC and Taco Bell chains.

So what

Pizza Hut has underperformed compared to KFC and Taco Bell, and also compared to other pizza-chain competitors. Its U.S. operations are particularly weak, with comparable-store sales down 4% in 2019.

Now what

It's true that Yum! Brands has more exposure to coronavirus in China than most other restaurant companies, and Pizza Hut has been struggling for some time. Investors' concerns are legitimate. But the COVID-19 epidemic is likely to prove a short-term issue, and Pizza Hut could improve.

Yum! successfully spun off its promising China business last month. Here's what investors need to know

As a technology and consumer goods specialist for the Fool, Steve looks for responsible businesses that positively shape our lives. Then he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

What happened

Shares of Yum! Brands, Inc. ( NYSE:YUM) fell 26.3% in the month of November, according to data provided by S&P Global Market Intelligence, after the fast-food restaurant specialist completed the separation of its China business, Yum China Holdings, Inc. ( NYSE:YUMC).

So what

But this drop wasn't the result of some negative market reaction to the move. As part of the planned separation -- which was originally announced in Oct. 2015 -- Yum! Brands investors received one share of Yum China stock for each share of Yum! Brands they owned as of the close of business on Oct. 19, 2016.

Now what

In the end, Yum! Brands' separation was a zero-sum game in terms of investors' dollars. But Yum! Brands itself is now more effectively positioned to execute the growth strategy and business transformation outlined at its annual investor conference in October.

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