Core Viewpoint - Yum! Brands, Inc. (YUM) is expected to report strong fourth-quarter results, with earnings per share (EPS) projected at $1.78 and revenues at $2.47 billion, reflecting solid growth compared to the previous year [2][8]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for fourth-quarter EPS is $1.78, indicating a rise of 10.6% from $1.61 reported in the same quarter last year [2]. - The consensus revenue estimate is $2.47 billion, suggesting a 4.4% increase from the previous year's figure [2]. Group 2: Factors Influencing Performance - Yum! Brands' performance is likely to benefit from global unit expansion, strong demand across core brands, and sustained momentum in digital sales [3]. - Menu innovation, limited-time offerings, and value platforms are expected to enhance performance, with digital ordering and loyalty engagement supporting traffic trends [4]. - Strong performance from KFC's international business, driven by brand relevance and local menu adaptations, is anticipated to contribute positively, with KFC revenues predicted to rise 7.7% year over year to $1.04 billion [4]. Group 3: Challenges and Costs - Elevated costs and challenges at Pizza Hut may negatively impact consolidated results, with management noting uneven performance and unit closures in certain international markets [6]. - Ongoing investments in marketing, technology, and development are expected to limit margin expansion, with company restaurant expenses predicted to rise 1.1% year over year to $735 million [6]. Group 4: Earnings Prediction and Stock Outlook - The model predicts an earnings beat for Yum! Brands, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [7][9]. - Yum! Brands is likely to report Q4 EPS of $1.78 on revenues of $2.47 billion, benefiting from digital sales strength and strong KFC performance, while facing headwinds from higher costs and uneven Pizza Hut results [8].

Core Viewpoint - Telsey Advisory Group maintains an Outperform rating and a price target of $1,100 for Costco Wholesale ahead of the December sales report [1] Sales Forecast - Costco is expected to release December sales results after market close on January 7, with total comparable sales growth projected at 2.2% for December 2025, a decrease from 7.4% in the previous year [2] - Core merchandise comparable sales growth is forecasted at 2.0%, down from 9.9% a year earlier, excluding an estimated net benefit of approximately 20 basis points from gasoline prices and foreign exchange [2] Regional Performance - U.S. comparable sales excluding gas are expected to rise by 1.0%, compared to 9.8% last year [3] - Canada’s comparable sales excluding gas and foreign exchange are projected at 4.0%, down from 10.3% [3] - Other international markets are expected to post comparable sales of 5.0% excluding foreign exchange, compared to 9.8% in the prior year [3] External Factors - Gasoline prices declined in the low single-digit range during December, creating a roughly 20 basis point headwind to comparable sales [4] - A weaker U.S. dollar is expected to provide an estimated 40 basis point tailwind based on recent currency trends [4] Traffic and Ticket Growth - Traffic growth is projected at 0.5%, down from 5.5% last year, as consumers continue to seek value [5] - Average ticket growth is expected to be 1.7%, roughly in line with the prior year, supported by tariff-related inflation and positive category trends [5] Digital Sales - Digital sales are forecasted to increase by 5.0%, compared to 34.4% last year, reflecting gains in non-food categories and ongoing benefits from assortment expansion and targeted marketing [6] - Non-food sales are expected to benefit from holiday and gift-driven demand, while Food & Sundries and Fresh Foods are anticipated to remain solid due to at-home consumption trends and Costco's value-focused assortment [6]

Core Viewpoint - Aflac Incorporated (AFL) is positioned for growth due to strong U.S. business performance, product launches, acquisitions, partnerships, improved underwriting discipline, and effective cost management [2] Financial Performance - Aflac's shares have increased by 4.7% over the past six months, outperforming the industry's 2.8% rise [2] - The market capitalization of Aflac is $58.1 billion [2] - The Zacks Consensus Estimate for AFL's 2025 earnings is $7.53 per share, reflecting a 4.4% year-over-year increase [4] - Revenue estimates for 2025 are projected at $17.8 billion [4] - Aflac has beaten earnings estimates in two of the last four quarters, with an average surprise of 9.4% [4] Growth Drivers - Aflac's revenue growth is supported by strong sales in both U.S. and Japan segments, driven by strategic investments and high persistency rates [5] - New annualized premium sales in Aflac Japan grew by 16.1% year-over-year in the first nine months of 2025, primarily due to sales of the Miraito cancer insurance product and Tsumitasu [5] - Aflac U.S. saw a 3% year-over-year increase in new annualized premium sales in the first nine months of 2025, with group products contributing significantly [6] - The company is enhancing its core insurance growth through strategic acquisitions and partnerships, expanding its capabilities and reach [7] Financial Position - Aflac concluded the third quarter of 2025 with $6.8 billion in cash and cash equivalents, an increase from $6.2 billion at the end of 2024 [8] - The company maintains a strong times-interest-earned ratio of 25.39X, compared to the industry average of 20.02X [8] - Aflac has prioritized shareholder rewards, repurchasing 25.7 million shares worth $2.7 billion in the first nine months of 2025 [8]

Chipotle - Chipotle's stock has fallen 51% from its high in 2024, with negative same-store sales reported [1] - The company opened about 200 new locations, but average unit volumes have dropped by approximately 3%, which is unusual for Chipotle [2] - Chipotle has a strong financial position, earning $1.5 billion in net income over the past year and holding $1.8 billion in cash with no debt other than lease liabilities [3] - The company is investing in menu innovation and has seen success with limited-time offerings, which encourage repeat visits [5] - Approximately 40% of Chipotle's sales come from households earning under $100,000, a demographic currently facing inflationary pressures [5] - Chipotle plans to open 350-370 new restaurants in 2026 and is focusing on international expansion [5] - The stock trades at a price-to-earnings (P/E) ratio of 30, down from 70 in mid-2024, indicating a significant valuation adjustment [6][7] Target - Target's stock is down 46% over the past five years, with inconsistent same-store sales performance [10] - The stock trades at a low forward P/E ratio of around 11, but the company maintains strong fundamentals, including an A credit rating and nearly $5 billion in cash [10] - Target is facing challenges related to consumer backlash and competition from rivals like Walmart, impacting its market share [10] - A new CEO, Michael Fidelki, is set to implement a multi-year plan to reinvigorate private label brands and key discretionary categories [11] - Target aims to drive over $15 billion in revenue growth over the next five years, but significant changes are needed for this to materialize [11] - The market is skeptical about Target's growth potential, reflected in its high dividend yield of about 5% [14] Crocs - Crocs' stock is down 23% over the past year, trading at just seven times forward earnings estimates [19] - The company faced challenges after acquiring Hey Dude, leading to bloated inventory and a goodwill impairment charge [19][21] - Despite domestic sales softness, Crocs is experiencing strong double-digit growth in international markets [25] - The brand maintains strong margins and is actively managing its capital structure, including share repurchases [21] - Crocs has successfully engaged in high-profile collaborations, which have helped revitalize its brand image [23]

Core Insights - Costco is focusing on enhancing the in-store shopping experience while also improving its digital sales platform to cater to changing consumer preferences [3][4][8] Digital Sales Performance - During the last fiscal quarter, digitally enabled comparable sales increased by 20.5% year-over-year, significantly surpassing the overall comparable sales growth of 6.4% [5] - Digital site traffic rose by 24% and app traffic surged by 48% during the same quarter [5] Management's Perspective - CEO Ron Vachris emphasized the goal of delivering a seamless experience that fosters trust and loyalty among members both in-store and online [6] - CFO Gary Millerchip expressed satisfaction with the increase in digital engagement and anticipates continued growth in digital sales over the long term [6] Strategic Challenges - While improving digital sales is a priority, it may conflict with Costco's core strategy of encouraging in-person shopping, which drives unplanned purchases through the in-store experience [8][9] - The company has implemented early shopping hours for Executive members and extended hours on Saturdays, which resulted in increased sales [10][11] Future Directions - Costco aims to build on the momentum of extended operating hours and explore additional strategies to attract shoppers to physical stores, especially as digital purchasing becomes more prevalent [11]

Core Insights - Target Corporation reported a decline in revenues and earnings for the third quarter of fiscal 2025, with revenues missing the Zacks Consensus Estimate while earnings exceeded expectations [1][10] - Comparable sales decreased by 2.7%, reflecting ongoing pressure in consumer discretionary categories, although digital sales showed resilience with a 2.4% increase [5][10] Financial Performance - Adjusted earnings were $1.78 per share, beating the Zacks Consensus Estimate of $1.76 but down from $1.85 in the previous year [3] - Total revenues amounted to $25,270 million, falling short of the Zacks Consensus Estimate of $25,360 million and representing a 1.5% year-over-year decline [4] - Merchandise sales declined by 1.9% to $24,752 million, while non-merchandise sales grew by 17.7%, driven by Roundel advertising and Target Circle 360 memberships [4] Sales and Traffic Metrics - Comparable store sales dropped by 3.8%, while comparable digital sales increased by 2.4%, with same-day delivery via Target Circle 360 growing over 35% [5] - Traffic decreased by 2.2%, and the average transaction amount fell by 0.5%, slightly worse than the expected decline of 0.4% [6] Margin and Operational Efficiency - Gross margin was reported at 28.2%, a slight decrease from 28.3% the previous year, with operational efficiencies in supply chain and digital fulfillment helping to offset increased markdowns [7] - Adjusted operating margin rate was 4.4%, down 20 basis points from the previous year, aligning with estimates [7] Financial Health - Target ended the quarter with cash and cash equivalents of $3,822 million and long-term debt of $15,366 million [8] - The company paid out $518 million in dividends and repurchased $152 million worth of shares, with approximately $8.3 billion remaining under its share repurchase authorization [8] Future Outlook - Target reaffirmed its fourth-quarter sales outlook, expecting a low-single-digit decline in sales, with adjusted earnings projected between $7.00 and $8.00 per share [11] - The company aims to enhance guest experience and traffic recovery through new exclusive items and improved shipping options as macro pressures ease [12]

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 17% year over year to $40.6 million, more than double the second quarter [15][17] - Net revenue for the quarter was $375.3 million, reflecting a 1.2% decline compared to last year, primarily due to the sale of a majority stake in Insomnia Cookies [17][18] - Free cash flow was positive at $15.5 million, with operating cash flow of $42.3 million during the third quarter [20][21] Business Line Data and Key Metrics Changes - U.S. segment organic revenue declined 2.2%, impacted by the exit of approximately 600 unprofitable doors [18][19] - International markets saw organic revenue growth of 6.2%, driven by Canada, Japan, and Mexico [19] - Market development segment organic revenue declined 5.3%, with adjusted EBITDA at $12 million, up 930 basis points year-over-year [20] Market Data and Key Metrics Changes - The U.S. market experienced a sequential increase in average weekly sales to $617 per door, an 18% increase due to door optimization [19] - International segment adjusted EBITDA increased by $0.4 million, or 1.7%, to $23.2 million, marking the first year-over-year growth in four quarters [19] Company Strategy and Development Direction - The company is focused on refranchising, improving returns on capital, expanding margins, and driving sustainable U.S. growth [6][23] - Plans to restructure the joint venture in the Western U.S. to reduce ownership to a minority stake, aiming to use proceeds for debt reduction [6][7] - Emphasis on leveraging existing assets and reducing capital intensity, with a significant reduction in CapEx spending planned for 2025 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround plan, highlighting early progress in reducing net leverage and improving profitability [15][22] - The company is mindful of continued consumer softness but remains focused on deleveraging the balance sheet and capital-light franchise model [21][22] - Positive consumer response to specialty donut campaigns and a successful Halloween campaign reinforces confidence in long-term growth [34][46] Other Important Information - The company plans to fully outsource U.S. delivery by 2026, which is expected to provide more predictable costs and operational improvements [38] - A refresh of the everyday donut menu was announced, responding to consumer demand for variety while maintaining focus on core products [42][43] Q&A Session Summary Question: Continued strong trends in international markets for Q4 - Management confirmed ongoing strong momentum in international markets, particularly in Mexico and Japan, with growth expected to continue [26][27] Question: Learnings from U.S. expansion for international markets - Management highlighted the importance of the hub-and-spoke model and the learnings from U.S. expansion as they enter new international markets [28][29] Question: U.S. demand environment in Q3 - Management noted that exiting underperforming doors contributed to a small revenue decline but significantly improved EBITDA and cash flow, with a focus on high-volume, profitable doors [32][33] Question: Cost expectations and Q4 EBITDA outlook - Management expects sequential improvement in EBITDA for Q4 and positive cash flow, although specific guidance was not provided [35][55] Question: Implications of fully outsourcing U.S. delivery - Management indicated that outsourcing will lead to more predictable costs and operational improvements, reducing exposure to casualty losses [37][38] Question: Expanded core menu lineup - The menu refresh was prompted by consumer demand for variety, balancing choice with operational efficiency [40][42] Question: Competition and consumer spending trends - Management emphasized the strength of the brand and its unique position in the market, focusing on delivering exceptional donut experiences [45][46] Question: Changes in distribution network strategy - Management is focused on expanding convenience and access to the brand in high-traffic locations, having exited low-traffic doors [48][49]

Financial Performance - Total revenue reached $1.1 billion[12] - Systemwide comparable sales grew by 12.1%[12] - Adjusted EBITDA was $110.1 million with a 9.6% margin[12] - Net income was $22.6 million, or $0.11 per share[12] Digital Sales & Loyalty Program - Digital sales contributed approximately 60% of total sales[12] - Loyalty program registered members increased to 21.5 million[23] - Loyalty program generated about 17% of total sales in Argentina, Colombia, Ecuador and Uruguay[29] Divisional Performance - Brazil's sales were $415.4 million, with systemwide comparable sales growth of 0.3%[27] - NOLAD (North Latin America Division) sales were $317.8 million, with systemwide comparable sales growth of 4.4%[28] - SLAD (South Latin America Division) sales were $409.1 million, with systemwide comparable sales growth of 38.2%[28] Development & Capital Allocation - Opened 20 new restaurants, including 18 freestanding locations[12] - Capital expenditures totaled $55.3 million[59] - Dividend payment was $12.6 million[59]

Financial Data and Key Metrics Changes - System sales grew by 4%, driven by strong unit growth at KFC International and market share gains at Taco Bell U.S. [5][30] - Digital sales increased by 18%, with a digital mix reaching a record 57%, up two points from the previous quarter [30][6] - Core operating profit increased by 2% to $646 million, with adjusted EPS at $1.44, up 7% year over year [32][33] Business Line Data and Key Metrics Changes - KFC contributed 52% of Yum! Brands' divisional operating profit, with KFC International growing same-store sales by 3% [8][12] - Taco Bell accounted for 37% of divisional operating profit, achieving 4% same-store sales growth, outpacing the limited service category in the U.S. by four percentage points [12][13] - Pizza Hut represented 11% of divisional operating profit, with same-store sales growth of 2% internationally, driven by recovery in the Middle East and strong performance in South Asia [15][14] Market Data and Key Metrics Changes - KFC International saw strong performance in key markets including South Africa, Spain, Canada, Japan, and the UK [8][10] - Taco Bell's same-store sales grew 5% in Europe, with double-digit increases in Canada and India [14] - Habit Burger and Grill experienced a year-over-year system sales decline of 1%, reflecting continued softness in consumer demand [15] Company Strategy and Development Direction - The company aims to be the most loved and trusted brand globally, focusing on digital sales and AI-driven personalized advertising [6][7] - KFC U.S. introduced the "Kentucky Fried Comeback" campaign to improve performance in underperforming regions [10] - Taco Bell is expanding its beverage offerings with the Live Mas Cafe, targeting the $25 billion beverage category in the U.S. [18][76] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a tough consumer environment but noted Taco Bell's ability to gain market share across all income bands [80][81] - The company expects to achieve 8% core operating profit growth for the year, with a strong focus on optimizing company store profits and refranchising gains [53][56] - Management expressed confidence in the long-term growth potential, emphasizing the strength of their digital capabilities and operational scale [45][48] Other Important Information - The company opened 871 gross new units in the quarter, translating to 386 net new units [33][34] - The company is committed to sustainability, achieving 89% of suppliers certified in food safety initiatives and sourcing 94% cage-free eggs [23][24] - Yum! Brands plans to maintain a strong and flexible balance sheet while returning excess capital to shareholders [44][45] Q&A Session Questions and Answers Question: Guidance for the year and confidence in achieving 8% operating profit growth - Management remains on track to deliver 8% core operating profit growth, with solid performance expected in the second half [53][54] Question: Technology capabilities and their impact on metrics - The Byte strategy is positively impacting both top and bottom line, with strong correlations between digital sales mix and sales growth [61][62] Question: Future capital intensity and CapEx benchmarks - The company will continue to be asset-light, maintaining a low percentage of restaurant ownership while ensuring high returns on tech investments [71][72] Question: Beverage strategy and differentiation - Taco Bell is well-positioned in the beverage market, leveraging successful proprietary drinks and expanding the Live Mas Cafe concept [76][77] Question: Consumer environment and brand positioning - Despite a challenging consumer environment, Taco Bell has consistently shown positive sales growth across all income bands, indicating strong brand resilience [80][81]

Core Viewpoint - Rexel demonstrated resilient sales growth in H1 2025, driven by strong performance in North America, while facing challenges in Europe. The company confirmed its full-year guidance, emphasizing ongoing productivity initiatives and strategic acquisitions to enhance market position. Sales Performance - H1 2025 sales reached €9,775.3 million, up 1.6% on a same-day basis, indicating positive momentum [1] - Q2 2025 sales were €4,950.3 million, reflecting a 0.6% increase year-on-year on a reported basis and a 1.8% increase on a constant and same-day basis [9][12] - North America sales grew by 8.7% in Q2 2025, contributing significantly to overall sales performance [17][18] Profitability - H1 2025 current adjusted EBITA margin was 5.8%, down 29 basis points compared to H1 2024, with operating income of €505.7 million [22][30] - The company achieved a free cash flow (FCF) before interest and tax of €127.2 million, representing a 21% conversion rate [34] Strategic Initiatives - Rexel executed five acquisitions, including Warshauer and Schwing, to strengthen its market presence in North America and Europe [37][40] - The company is focusing on high-growth segments such as datacenters and broadband infrastructure, which contributed to market share gains despite overall demand softness in Europe [2][4] Regional Performance - European sales declined by 3.0% in Q2 2025, with specific challenges in France and the DACH region [13][19] - Asia-Pacific sales decreased by 6.5% in Q2 2025, reflecting a competitive market environment [20][21] Outlook - The company confirmed its 2025 outlook, expecting stable to slightly positive same-day sales growth, with North America performance compensating for lower activity in Europe [39]