What to Watch on Wall Street This Week: Yum, Kors, Coffee and More

×
Yum Brands
AP/Eugene Hoshiko
You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From the new leader in pricey handbags posting what should be another quarter of stellar growth to a fast food giant that's been slumping lately, here are some of the things that will help shape the week that lies ahead on Wall Street.

Monday -- American Fast Food, Chinese Problems: Yum Brands (YUM) is a fast food juggernaut with an unfortunately cheesy corporate moniker. Yum is the company behind KFC, Pizza Hut and Taco Bell. Yum has been struggling in recent quarters, but that has nothing to do with its domestic operations. In fact, as a result of the success of Doritos-dusted Locos Tacos at Taco Bell and KFC scoring with its boneless fried chicken meals, Yum has been holding up pretty well close to home.

The challenge for Yum has been in China where its once booming KFC and Pizza Hut chains started to struggle last year. This is a surprisingly significant part of Yum's business, weighing down its overall results. Yum reports Monday. Wall Street sees a slight decline in profitability on a small increase in revenue.

Tuesday -- Par for the Kors: Luxury handbags are still as popular as ever, but the baton of market leadership has been passed from Coach (COH) to Michael Kors (KORS). Coach has struggled lately. It posted another disappointing quarter two weeks ago. Sales slipped 6 percent as comparable-store sales in North America plunged a cruel 13.6 percent. It's against this backdrop that Kors reports results for the same holiday quarter Tuesday.

Kors shareholders can afford to dismiss Coach's weak financials. Kors has been posting stellar doubled-digit growth even as Coach has slumped. Analysts see Kors posting revenue and earnings growth of 35 percent and 34 percent, respectively.

Wednesday -- Big Joe: Green Mountain Coffee Roasters (GMCR) has revolutionized the way we make coffee at home or at the office with its Keurig single-serve coffee maker and the K-Cup portion packs that provide single doses of caffeinated blasts.

It has been 16 months since Green Mountain's patent protection on the K-Cup platform ended,
but the company behind the Keurig brewer continues to grow at a reasonable clip by working directly with some of the biggest names in java. It hasn't been perfect. Wall Street's forecasting sales to climb just 5 percent when Green Mountain Coffee Roasters reports quarterly results Wednesday. However, Green Mountain continues to work on new brewing platforms -- which will come with new patent protection on the coffee packs.

Thursday -- Linking Up: One of the more surprising winners lately in social media has been LinkedIn (LNKD). The stock has more than quadrupled since going public at $45 three years ago. LinkedIn may not seem to have the same broadly sticky engagement as Facebook (FB) or Twitter (TWTR), but it has connected with affluent career-oriented professionals. Its strategy allows it to avoid relying on advertising or serving up page views the way that other social media sites do. Instead, LinkedIn generates revenue from recruiters and companies that want premium access to the site's features.

LinkedIn is still growing quickly, and we should see that on display come Thursday. Analysts are holding out for modest bottom-line improvement on a 44 percent surge in revenue.

Friday -- Your Room is Ready: The hotel industry is quietly hoping that this global economic recovery sticks. After all, hoteliers need both tourists willing to go on vacation and corporations with the means to bankroll business trips and convention participation. The trading week concludes with Wyndham (WYN) reporting. It's not just about the namesake hotels. Beyond the Wyndham brand, this is the lodging giant behind the value-minded Ramada, Travelodge and Days Inn properties. All told, Wyndham watches over 7,440 franchised hotels, filling over 638,300 hotel rooms worldwide.

Wyndham is expected to post modest growth for the holiday quarter, but investors here will want to keep an eye on occupancy rates and revenue per available room, the two metrics that are critical to gauging the pulse of the lodging industry. Investors are checking in. Let's see if Wyndham checks out.

Motley Fool contributor Rick Munarriz owns shares of Green Mountain Coffee Roasters. The Motley Fool recommends Coach, Green Mountain Coffee Roasters, LinkedIn and Michael Kors Holdings. The Motley Fool owns shares of Coach and LinkedIn.


Increase your money and finance knowledge from home

Introduction to Economic Indicators

Measure the performance of the economy.

View Course »

Investment Strategies

What's your investing game plan?

View Course »

Add a Comment

*0 / 3000 Character Maximum

Comments

Filter by:
captsunshine2

Watch Buffet squirm while his fund takes a beating. His fund and he
himself are not doing too well.

February 03 2014 at 7:12 PM Report abuse -2 rate up rate down Reply
1 reply to captsunshine2's comment
steves1709

Short term thinking. Buffet doesn't play that game, that's why he's rich.

February 03 2014 at 9:37 PM Report abuse +1 rate up rate down Reply