Yum! Brands franchisee checks see Taco Bell comps top expectations, says Loop

Loop Capital analyst Alton Stump keeps a Hold rating and $140 price target on Yum! Brands (YUM) while noting that the firm’s Taco Bell U.S. franchisee checks indicate that same-store sales growth came in well ahead of expectations. The firm’s latest conversions with U.S. Taco Bell franchisees suggest same-store sales were up 7%-8% in Q4, including a modest acceleration from about 7% during the first half of Q4 to about 8% during the back half of the quarter, which implies comps meaningfully exceeded Loops’s prior estimate for 5% growth in Q4 and consensus at up 4%, the analyst tells investors in a research note.