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Formerly owned by PepsiCo, Tricon Global Restaurants (YUM – 29-3/4) is the parent of Pizza Hut, KFC, and Taco Bell. The company is the second-largest fast-food corporation measured by sales, but it leads its chief rival, McDonald's, in terms of locations, with 30,000 restaurants in over 100 countries worldwide.
Last night after the close, YUM announced second-quarter earnings of 77 cents per share, topping the Street's expectations of 70 cents per share. This morning, the company's CEO says he sees a "very solid year" for the trio of restaurants in 2001, although same-store sales at the eateries for this year's fourth quarter will probably be flat or slightly negative. Additionally, YUM boosted the low end of its full-year earnings-per-share forecast from $2.90 to $2.95 per share.
The shares have been sideways-bound for the past nine months, oscillating between the 24 and 34 levels since January. This trendless motion has made the equity's moving averages fairly insignificant indicators. This morning, despite its positive earnings surprise, the security is trading modestly lower.<