Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Yum Brands continues to operate in a challenging operating environment and this was reflected in its recent results.</li><li>With significant contributions from all of their brands, they opened 781 gross new units in the third quarter.</li><li>However, Yum Brands was negatively impacted by inflation and failed to meet the earnings expectations of Wall Street.</li></ul>

Yum Brands continues to operate in a challenging operating environment and this was reflected in its recent results.With significant contributions from all of their brands, they opened 781 gross new units in the third quarter.However, Yum Brands was negatively impacted by inflation and failed to meet the earnings expectations of Wall Street.

Yum Brands: International Market Growth & Other Drivers

Equity Capital Markets

<ul><li>Yum Brands started 2022 on a positive note reporting a system sales growth of 8%, driven by unit development and same-store sales growth.</li><li>The company opened nearly 1,000 gross units, with positive unit growth across the board.</li><li>Yum's digital channels continue to grow, with approximately $6 billion in digital sales, a new first-quarter high, and a 15% year-over-year increase.</li></ul>

Yum Brands started 2022 on a positive note reporting a system sales growth of 8%, driven by unit development and same-store sales growth.The company opened nearly 1,000 gross units, with positive unit growth across the board.Yum's digital channels continue to grow, with approximately $6 billion in digital sales, a new first-quarter high, and a 15% year-over-year increase.

Yum! Brands Inc.: Financial & Price Forecasts

Credit

<ul>
<li>Brands had a decent 2021 despite facing a string of headwinds on account of inflation, labour, supply chain, and consumer mobility as a result of the Omicron variant.</li>
<li>It achieved 13% system sales growth thanks to a strong 10% same-store sales growth, resulting in an 18% increase in full-year core operating profit.</li>
<li>Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.</li>
</ul>


Brands had a decent 2021 despite facing a string of headwinds on account of inflation, labour, supply chain, and consumer mobility as a result of the Omicron variant.
It achieved 13% system sales growth thanks to a strong 10% same-store sales growth, resulting in an 18% increase in full-year core operating profit.
Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.


Yum! Brands Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>Brands ended the year on a high note, opening a total of 4,180 gross units and 3,057 net new units, resulting in a 6%-unit growth for the full year of 2021.</li><li>The company achieved 13% system sales growth thanks to a strong 10% same-store sales growth, resulting in an 18% increase in full-year core operating profit.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Brands ended the year on a high note, opening a total of 4,180 gross units and 3,057 net new units, resulting in a 6%-unit growth for the full year of 2021.The company achieved 13% system sales growth thanks to a strong 10% same-store sales growth, resulting in an 18% increase in full-year core operating profit.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Forensic Analyst

Jason Yap, CFA

Forensic Accounting

Yum China Holdings  / Forensic Accounting

<ul>
<li>Yum China opened 563 stores in the fourth quarter and 1,806 stores in all 2021, bringing its total store count to 11,788 at the end of last year</li>
<li>While the brisk rate of new store openings helped Yum China achieve revenue growth in Q4 2021, the persistent weakness in SSSG and restaurant margins are causes of concern</li>
<li>Investors should monitor whether store expansion is accompanied by a corresponding decline in key operating metrics. If so, there could be parallels with Haidilao</li>
</ul>


Yum China opened 563 stores in the fourth quarter and 1,806 stores in all 2021, bringing its total store count to 11,788 at the end of last year
While the brisk rate of new store openings helped Yum China achieve revenue growth in Q4 2021, the persistent weakness in SSSG and restaurant margins are causes of concern
Investors should monitor whether store expansion is accompanied by a corresponding decline in key operating metrics. If so, there could be parallels with Haidilao


Yum China (YUMC US) - Store Expansion Edged Revenue Growth

United States

Yum! Brands, Inc, owns and franchises quick-service restaurants worldwide.  The Company develops, operates, franchises and licenses a worldwide system of restaurants which prepare, package and sell a menu of food items.

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Yum! Brands Inc (YUM US)

Yum Brands: International Market Growth & Other Drivers

Yum Brands continues to operate in a challenging operating environment and this was reflected in its recent results. With significant...

Baptista Research

Yum! Brands Inc.: Financial & Price Forecasts

Yum Brands started 2022 on a positive note reporting a system sales growth of 8%, driven by unit development and same-store sales growth. The...

Baptista Research

Yum! Brands Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Brands had a decent 2021 despite facing a string of headwinds on account of inflation, labour, supply chain, and consumer mobility as a result of...

Baptista Research

Yum! Brands: Financial & Price Forecasts

Brands ended the year on a high note, opening a total of 4,180 gross units and 3,057 net new units, resulting in a 6%-unit growth for the full...

Baptista Research

Yum China (YUMC US) - Store Expansion Edged Revenue Growth

Yum China's brisk rate of new store openings helped it achieve revenue growth in Q4 2021. However, the weakness in SSSG and restaurant margins are...

Jason Yap, CFA

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Market Cap (USDm)

P/E

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