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Yum Brands Director Buys 35,000 Shares (YUM)

Yum Brands Inc. (NYSE: YUM) Director Robert Walters last week bought 35,000 shares of YUM common stock at an average price of $61.94 per share.

The purchase came a day after Yum Brands reported its quarterly results. The company’s fourth-quarter results were negatively impacted by China, where its sales at established restaurants dropped 6% due to adverse publicity regarding chemical residue found in some of the company’s chicken supply.

Same-store sales are expected to remain weak in China. In January, the company’s same-store sales tumbled 37%. The company forecasts a 25% drop in first-quarter same-store sales in China. Due to the weakness in China, Yum expects a “mid-single digit” percentage decline in earnings per share for 2013, compared to previous forecast of earnings per share growth of at least 10%.

For the fourth quarter of 2012, Yum Brands reported net income of $337 million, or $0.72 per share, compared to $356 million, or $0.75 per share reported for the same period in the previous year. Excluding one-time items, the company reported a profit of $0.83 per share for the fourth quarter, beating the consensus forecast of $0.82 per share.

The company’s total revenue for the fourth quarter was $4.15 billion, compared to $4.11 billion reported for the same period in the previous year.

Yum shares had fallen sharply after the company gave a disappointing outlook for 2013 due to weakness in China. The purchase of 35,000 shares from Walters, however, suggests that insiders are still confident about the company’s prospects.

On Tuesday, Yum shares rose marginally. The stock finished the day 0.31% higher at $64.75. Year-to-date, Yum shares are down nearly 2.5%.


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All stories in are for informational purposes only. This is NOT a stock recommendation. This story is a daily light analysis featuring a stock with insider buying. With some caveats, insiders purchase a stock because they think the stock is going up. There are other factors to consider such as size of the transaction relative to their compensation and net worth. Sometimes, insiders might be propping a stock price up for future financing. Sometimes, the amount of insider buying are misread or misreported. Each month, DailyStocks releases a a summary of the stocks with insider buying. Sign up for the free monthly newsletter at . About is the place where you can find stories about stocks with insider buying, where you can educate yourself about stock market investing, and where you can perform the stock search engine analysis – you enter a stock symbol, and you get a resulting page of stock ticker indexed links so that you do not have to type the stock symbol each time.