|
Although the U.S. segment has a history of a choppy profit performance, Tarantino noted that Yum is increasingly optimistic about its ability to achieve profit growth of at least 5 percent in part because of new store openings. After nine years of declines, Tarantino noted Yum achieved net new store openings in the U.S. this year. Over the next decade, he said Yum expects to double overall sales for Taco Bell, which accounts for 60 percent of U.S. operating profit. Janney analyst Mark Kalinowski kept his "Buy" rating on Yum as well, based largely on its growth prospects outside the U.S. But he also noted that the Taco Bell plans to devote more marketing to national TV advertising could boost sales domestically. Jefferies analyst Andy Barish kept his "Hold" rating on Yum, citing the slowdown in China. But in the U.S., he noted that Yum's incentives for Taco bell franchisees to build restaurants units could end up taking away market share from McDonald's Corp. and Chipotle Mexican Grill Inc. Barish also noted that Taco Bell's new menu platforms could help "surprise investors" in the year ahead. Yum's shares fell 84 cents to $66.08 in morning trading Friday, a day after posting gains during the analyst conference.
Copyright 2012 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor