Why YUM! Brands (YUM) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of YUM! Brands Inc. (YUM) are lower by -4.96% to $78.61 at the beginning of trading on Thursday after the company reported net earnings and revenue for the 2014 second quarter that didn't meet analysts' expectations.

The quick service restaurant company, which owns the popular KFC, Pizza Hut, and Taco Bell brands, posted a 19% increase in net income to $334 million, or 73 cents per share, compared to $281 million, or 61 cents from the 2013 second quarter.

Earnings per share were in-line with analysts polled by Bloomberg, but others anticipated the company would report earnings as high as 81 cents, Bloomberg reported.

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YUM's revenue was up 10% to $3.2 billion, but fell short of the $3.24 billion analysts predicted.

Separately, TheStreet Ratings team rates YUM BRANDS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate YUM BRANDS INC (YUM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

YUM Chart YUM data by YCharts

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TheStreet's Brian Sozzi has details on Yum's latest quarterly results:


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