Citi Says Yum! Brands Earnings "Decent" (YUM)

Citi Investment Research discusses Yum! Brands, Inc.

earnings results, which came after the bell yesterday. It has a $44 price target, and a Hold rating on shares. In the research note, Citi writes, "YUM reported 3Q EPS of $0.73 (ex-special items of +1c) vs. the FC est. of $0.72, on rev of $2.86B vs. the FC est. of $2.87B. Lower than expected restaurant level costs were partly offset by higher tax rate, and drove the upside vs. the FC estimate. Restaurant margin of 18.9% came in well above the FC est. of 17.9%, driven by strength at YRI and YUM China. The co. raised '10 guidance to $2.48 from $2.43 which implies 4Q EPS of 58c vs. the FC est. of 59c." Shares of Yum brands gained 15 cents in after hours to close at $46.95.