Shares of Yum! Brands Inc (NYSE:YUM) are lower this morning, after the fast food operator narrowly missed second-quarter expectations. The operator of Taco Bell reported earnings of $1.44 per share, just below the Zacks Consensus Estimate of $1.45, and revenue of $1.93 billion, slightly under the expected $1.94 billion. The company attributed some of its underperformance to weak domestic results from subsidiaries KFC and Pizza Hut, which continue to face stiff competition in their sector.
At last glance, the equity was down 3.1% to trade at $142.42. While YUM has faced recent headwinds, it still boasts a 6.26% year-to-date lead, bolstered by two positive earnings reactions earlier this year. Plus, support at the $140 level has kept pullbacks in check since February.
Analysts remain cautious on YUM, with nine maintaining a "strong buy" rating and 18 a "hold." Options traders have been much more bullish than usual over the last 10 weeks, however. The stock's 50-day call/put volume ratio of 1.85 at the International Securities (ISE), Cboe Options (CBOE) and NASDAQ OMX PHLX (PHLX) sits higher than 96% of readings from the past year.
Over in the options pits today, options volume is running at five times the typical intraday average. The most active contract is the monthly 8/15 monthly 140-strike call.
