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Do You Prefer Panera or Taco Bell (Yum! Brands)?

These are our articles posted on Seeking Alpha. Click "READ MORE" if you would like to read the rest of the articles.

Is Panera Set To Rule A Post-Chipotle World?

Summary

  • Panera 2.0 has put Panera in a healthy position to absorb increasing volumes effectively.
  • Panera 2.0 has had the biggest effect on average check growth.
  • Panera has benefited from Chipotle's recent troubles, but much of the company's success can be attributed to the efficacy of its own strategic initiatives.

Panera 2.0 seems to be moving the company in the right direction.

Shares of Panera Bread (NASDAQ:PNRA) have been moving upward since hitting a 'local' minimum in January 2016. Currently, PNRA's stock price is sitting nearly 0.5%, 2.4% and 9.6% above its 20-day EMA, 50-day EMA and 200-day EMA, respectively. The order of the three moving averages confirms that the stock is in an uptrend... READ MORE



The Spin-Off Should Prove To Be A Boon To Yum! Brands

Summary

  • YUM had a fantastic first quarter.
  • YUM’s decision to spin-off its Chinese operations shouldn’t be viewed negatively.
  • Investors mustn’t underestimate the earnings power of YUM’s business in China.

Shareholders of Yum! Brands (NYSE:YUM) have been on a bumpy ride in recent years. This can in part be attributed to the company's struggles in China, a market that on paper seemed a straightforward stairway to unprecedented profits some two or three decades ago (YUM first came to China in 1987). At that time, and even years after that, YUM's management could hardly foresee how sales in China could be impacted by food safety issues and underestimated the investments needed to stay competitive in a volatile Chinese economy.

Managing the U.S. business together with the Chinese business was always going to be difficult because in many ways both these markets are fundamentally different. In China it isn't easy for any foreign private company to realistically set an international standard for best practices in food security and consumer behavior is more complex and less predictable compared to consumer behavior in the U.S. Thus YUM's decision to spin-off its Chinese business doesn't come as a major surprise. Before discussing this further, it is worth assessing YUM's Q1 2016 results first... READ MORE

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