On Wednesday Feb 3 after the markets closed YUM Brands reported earnings that beat estimates but saw revenue that disappointed. They beat estimates by 2 cents to 68 cents a share on revenue of $3.95 billion, below estimates of $4 billion. Sales out of China grew 7 percent year over year. Operating profit though, jumped 207 percent for the strongest quarterly growth not just in the China Division but throughout all the Yum Brands restaurants. Again exchange rates impacted the profit by about $107 million.
I set up a new trade ahead of those earnings which unfortunately ended with a loss. This is not the first loss my portfolio has taken in this quarterly earnings season. I do not expect it will be the last.
This article outlines the trade and explains what happened, how large the loss was, how the trade might be improved and some thoughts on recovering the trade loss…This Yum Stock trade alert and discussion is for FullyInformed Members.
YUM Stock Trade Alert for Feb 4 2016
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.