YUM! Brands’ Q3 Transcript Smart Summary™ — Extracting the Essentials From a Call With Many Moving Parts

This week, we continue to use Sentieo’s transcript Smart Summary™ to highlight selected reporting companies. We apply machine learning and natural language processing to create a more efficient and a more repeatable process. On Tuesday, we highlighted Beyond Meat (Nasdaq:BYND), and on Wednesday, we looked at Merck. (While Keytruda continues to power through, we picked up pricing pressure warnings for 2020.)

In today’s highlight, we are looking YUM! Brands (NYSE:YUM), the parent of global restaurant chains KFC, Taco Bell, and Pizza Hut. The company reports many metrics about its business: domestic (US) and international unit growth, comparable store (“like for like”) sales growth, and “systemwide” sales growth (reflective of the health of the franchisee system). 

Additionally, the company has a minority investment in order aggregator/delivery company Grubhub, which further complicates the financial reporting, as YUM reports mark-to-market adjustments on top of the operating earnings. 

In this post, we will share our highlights from the Smart Summary™ PDF that we received in our email inbox a few minutes after the original transcript came through. (The Sentieo platform is much larger and more interactive that what you see in this post, so we encourage you to check it out.)

With Smart Summary™, the transcripts are parsed by a ML tool which classifies and scores sentences based on broad classifications, such as Guidance or Legal. (See below). Smart Summary™ runs a layer of NLP processing on top of that, classifying sentiment (positive/negative/neutral), looking for “deflection” statements, and surfacing keywords. 

Looking at the YUM Q3 call Guidance section, we immediately spot the big delta between the GAAP and non-GAAP earnings. We also see the red (negative) outlook for Pizza Hut US, a unit that has been weak for a while. 

As we mentioned earlier, the transcript (as well as the press release) are very KPI-heavy. The convenient sentence extraction and classification helps you get the full picture faster.

We also note a number of negative sentiment questions from the analysts on the call, with the most “negative” analyst question being about system-wide margin pressures. 

The keyword surfacing logically picked up Same Store Sales, Net New Units, and System Sales.  We are highlighting just one of these here; unit growth keeps up, so the sentiment overlay is green. 

Watch our short video walk-through:

To find out more about the Smart Summary™ and all of Sentieo’s other AI-powered features, please get in touch

 

Merck Q3 Transcript Smart Summary™ – Keytruda Growth Continues, But Pricing Pressure Looms

As a part of our earnings season coverage, we’re continuing to use Sentieo’s transcript Smart Summary™ to highlight selected reporting companies. Smart Summary™ applies machine learning and natural language processing to create a more efficient and a more repeatable process for transcript analysis. Yesterday, we highlighted Beyond Meat (Nasdaq:BYND), where we definitely went beyond the meat of the matter and into the details.

In this piece, we will take a quick look at pharmaceutical giant Merck. We are using the newly-released email push notification functionality for the Smart Summary™ transcript, which provides users with both the summary and the full transcript in a single PDF. We’ll go through parts of the Smart Summary™ PDF for Merck, but you can view the full report here.

The key headline from the MRK release was that the company increased its 2019 non-GAAP EPS guidance. We can see this clearly in the Guidance section of the summary. 

In the KPI section, we see several interesting tidbits: tax rate, Animal Health division data, plus comments on Keytruda, an important drug. 


The pricing pressure comment that was ranked high in Guidance was also notably ranked high in the Products/Markets section as well.

On the Legal/Regulatory front, we see comments around drug approvals. 

In addition to the ML-based classification, we also apply NLP (Natural Language Processing) in three dimensions: sentiment (positive/negative), deflection (language associated with “deflection”), as well as keyword surfacing. 

In Merck’s transcript, we see a lot of highly-scored positive sentences (100 out of 100). 

On the negative side, we see the pricing pressures in 2020 comments (already picked up and classified by the ML layer) marked as mostly negative.

We can also see that pricing is the most negative analyst question as well!

The top keyword based on our algorithmic keyword surfacing is Keytruda, a relatively new but popular drug.

The second and third keywords are also product related. Below we see an active discussion around Gardasil capacity.

And the focus on Keytruda and Gardasil is justified. Using Sentieo’s Table Explorer table chaining tool on the 8-K filing, we can see that both drugs continue to grow, with Keytruda now approaching 30% of revenues. 

Watch the video below to see it in action:

View the full report on Merck here, and try using Smart Summary™ for yourself by signing up for access for Sentieo.

“Getting To The Meat” of the Beyond Meat (Nasdaq: BYND) Earnings Call

Beyond Meat (Nasdaq: BYND) reports triple-digit revenue growth,1600 bps margin improvement, ups FY guidance — all of which were picked up and highlighted by Sentieo’s ML/NLP-based transcript Smart Summary.™  

Sentieo’s transcript Smart Summary™ uses machine learning and natural language processing to help you go through transcripts faster, highlight important information you might have missed, objectively quantify sentiment and deflection statements, and surface keywords and keyword trends. All of this happens at the click of a button on our platform, and for clients with enabled alerts, also via email.  

You no longer have to read transcripts chronologically; you can sort the document based on classifications, as well as “x-ray” for trending (and disappearing!) keywords. 

Today we will highlight BYND’s results from Monday, October 28, 2019, as we saw them in our email alert with the PDF document. 

Using machine learning, we trained a tool to read and classify sentences in transcripts in several buckets, including Guidance, KPIs, and more. 

Right on top, we can see the robust guidance increase by the fast-growing meat alternative company. 

We can see the current quarter results’ highlights in the KPIs section:

The massive 1,600 bps gross margin expansion was picked up there, too. 

Our NLP processing picks up Deflection as well as Positive/Negative sentiment. We can see some softly optimistic language under Deflection. 

The Negative sentiment highlights include competitive pressure from incumbents as well as lower volume in newer points of distribution. 

One keyword that stood out is McDonald’s: a high profile restaurant partner that is running a very limited test only in Canada. We see the analyst being very inquisitive about it. 

To view the full Smart Summary PDF, search for the transcript in Sentieo and click on the Smart Summary icon. If you don’t have access to Sentieo yet, view the full summary here.

You can also check out the video below for a Sentieo walkthrough!

Stay tuned for our next earnings Smart Summary™ tomorrow!

Want to try Smart Summary™ for yourself? Get started with a free trial.

How to Plot Metrics Across An Entire Company Watchlist

With v3.9 of Sentieo, you can now run comparable analysis or obtain sector-level insights (e.g. Sector Gross Margins, a stock’s multiple relative to the sector) by entering a watchlist in any ticker input box in Plotter. 

Using Watchlists In Sentieo Plotter

You can now plot metrics across an entire watchlist, allowing you to (1) run comparable analysis across a peer group or (2) generate aggregate metrics for a sector. When you arrive at the ticker input box, simply start typing in the name of a watchlist to select it:

watchlist tokenization

Peer Group Comparisons

Use the watchlist function on Stock Price to find outperformers in a peer group:

 

Aggregate Metrics Across a Watchlist

Use the watchlist function on P/E and combine it with Weighted Line to generate a sector-level P/E:

 

The watchlist function is among the most powerful tools in Plotter. We also recommend trying out the following use cases:

  • Comparing recent changes in EPS Estimates
  • Generating sector KPI’s
  • Relative P/E vs. a peer group

 

Other Improvements We Made

 

Saved Series

We made it easier to tag series to tickers and topics, and have also made them easier to find. Try using this with Table Explorer or CSV Uploads to manage your own KPIs.

Correlations

We simplified the correlation section so that you can more easily determine what key factors are driving stock prices and valuations.

Templates

We simplified the templates section and added them to the “Add Series” search results to make them easier to use.

 

Join our upcoming webinar to learn more about our financial data updates in Sentieo v3.9!

Introducing Smart Summary™ Enhancements: PDF Report Email Alerts, Highlighting, and Sentiment/Deflection Charts

In our last release, we introduced Smart Summary™ — a whole new way to read transcripts. 

Our latest release builds on our transcript sentiment tool with Smart Summary™ enhancements to help you save time and get more insights, especially during earnings season.

 

 

 

Download a PDF Report 

To get a Smart Summary PDF report as you’re researching in Sentieo, click on the PDF icon in the top right-hand corner of the Smart Summary™ panel to immediately download a PDF of the report.

 

 

 

 

 

 

 

Check Out Your Report

Your PDF report will include language classifications like Guidance, KPIs, Deflection, and much more.

 

Get Smart Summary Reports Sent Straight to Your Inbox

Now you can automatically receive a Smart Summary™ PDF report in your email inbox when you schedule alerts for a single company or a group of companies in a saved watchlist. Don’t miss a beat during earnings season!

 

Sentiment & Deflection Charts

We also added two new, at-a-glance charts to the Smart Summary™ panel.

One visualizes the trends of Management Sentiment, Analyst Sentiment, and the “spread” between them. (See left screenshot below).

The second chart shows the company’s Deflection score going back 2 years. (See screenshot on right).

Use these visual cues to get quick insights into the companies that you cover.

 

Highlight and Tag Transcript Content

Now you can highlight and add tags to transcript content while in Smart Summary™. Highlighted text is automatically tagged to the company ticker for easy surfacing in the future.

You’ll never lose track of your highlights, annotations, and notes, which are all centralized in your Sentieo Notebook.

 

Video Walkthrough

Our Head of Research runs through how to get the most insights out of Smart Summary:

Start saving time and finding new insights today with a free trial of Sentieo!

Introducing Sentieo’s Enhanced Equity Data Terminal!

Save time, improve productivity, and enhance your confidence in modeling and investment decisions using the new and improved Equity Data Terminal in Sentieo. Access significantly more equity data (12x more data fields for a total of 1500 fields) and new financial models, including consensus and standardized models. Get improved auditability of model numbers and the ability to download all models (including As Reported) directly from Excel.

Access Private Company Data in the EDT

Data on 750,000 private companies is now available in Sentieo’s EDT, including basic profile information (date founded, location, activity sectors), funding rounds, investments, exits, acquisitions, and investors.

When available, data from the private company dataset on funding, investment, and M&A has also been added to public company profiles in the EDT.

 

Additional Fundamental Data and New Model Interface

We dramatically increased the data field count (12x!) in the EDT to 1500 fields total. (Source: Refinitiv Fundamental Data)

We updated the look and feel — and responsiveness — of our financial models.

 

New Financial Models Available

We expanded the number of financial models available for income statements, balance sheets, and cash flow statements.

  • Consensus Model: Based on Refinitiv I/B/E/S Estimates data, this model shows the actual adjusted figures for historical periods and current consensus for future periods.
  • Standardized Model: Based on Refinitiv Reuters Fundamentals data, this model takes the financials reported by the company and reclassifies all the items according to a standardized template.
  • As Reported Model: Based on Refinitiv Reuters Fundamentals data, this model is the closest to the financials reported in a company’s filings and press releases.
  • Updated Sentieo Model: This model has adjustments like the Consensus model, as well as justifications for the numbers.
  • Models for Banks: The EDT now also includes the As Reported and Standardized models from Refinitiv for banks.

 

KPIs Now Available In EDT

Public company financials now include KPIs pulled from filings; for example: gross leasing area for mall operators, per-passenger and per-distance metrics for airlines, retailer average sales per store, and restaurant comparable sales and unit openings. 


 

 

New Time Period Options 

Calendarized, Next 12 Months (NTM), and Last 12 Months (LTM) periods are now available for all of our models.

 

 

Formula Auditing and Data Sourcing

We have added new ways to audit formulas and to understand the underlying data sources.

Audit Pop-Up: Every number in our models and on the ratios page now includes a pop-up showing how the formula was calculated.

Historical Filing Comparison: Click on “Show Earlier Versions” to see a side-by-side comparison of a previous report for the period and the most recent update.

Filing Information: All Standardized and As Reported models include detailed filing information used to produce the number,

Consensus History (Consensus Model Only): Click on any number and a pop-up will show you the history of the estimate for that number.

 

New Excel Tools for Modeling

All numbers in our financial models are now available for export to Excel to support your own modeling activity— including the As Reported model! This includes the ability to bring the underlying formulas in the models into Excel.

Video Walkthrough of New Features

Our Head of Research walks through the enhanced EDT in this video: 

To learn more about the updated Sentieo EDT,  join our upcoming webinar covering everything about it!

Now Available In Sentieo: Private Company Data

Widen Your Corporate Research Lens

With our latest release, Sentieo now allows you to enhance your corporate research workflow with information on 750,000 private companies. With the growth in private capital players, such as VC and PE funds, analysts today need easy access not only to public company data, but to private company data as well. 

Sentieo’s Equity Data Terminal includes basic profile information on private companies, including date founded, location, activity sectors, funding rounds, investments, exits, and acquisitions.

Private company profile in Sentieo EDT.

 

Search for Private Companies 

Search for private company news and more using Sentieo’s AI-powered Document Search. Use private company and subsidiary data to:

  • Research emerging and existing competitors
  • Identify potential acquisition or investment targets
  • Deepen your understanding of market trends

 

Search for private companies in Sentieo.

 

Profiled entities include funds with listed investments, as well as public company acquisition and disposition activities.

Check out our latest video on the subject:

For more details on Sentieo’s private company data access, contact your Sentieo representative or get in touch.

Our Latest Release: Private Company Data, New Financial Models, and Automatic Smart Summary™ Email Alerts

Today, the Sentieo team unveiled our latest release! New capabilities in this release include the addition of private company data and search, an improved ability to model equity data through a dramatic increase in the data fields available within the Sentieo Data Terminal, and automated email delivery of earnings transcript Smart Summary™ reports.

Private Company Data

Enhance your corporate research workflow and insights with information on 750,000 private companies, including:

  • corporate profile information (founded date, location, activity sectors)
  • funding rounds
  • investments
  • exits
  • acquisitions

…plus the ability to search for private company news and press releases using Sentieo’s AI-powered Document Search.

 

New Equity Data Financial Models

Save time, improve productivity, and enhance the confidence in financial modeling and investment decisions using the new and improved Sentieo Data Terminal, which includes over 1,300 new data fields and many more pre-created and auditable financial models. (Click image below to zoom in).

Automatic Smart Summary™ Email Alerts

Smart Summary has disrupted the onerous and time-consuming process of reviewing and interpreting earnings calls, and now Sentieo has added the ability for users to receive email alerts for these unique earnings call transcript categorization and analysis reports. Learn more about Smart Summary here. (Click image below to zoom in).

To get more details about the release, contact your Sentieo representative or sign up for our upcoming webinar about the updated Equity Data Terminal. A Sentieo product specialist will be walking through the latest new features!

6 Questions To Uncover Competitive Intelligence Insights: A Sentieo Whitepaper


Why We Wrote This Guide

The amount of data available to researchers today can be overwhelming. In fact, competitive intelligence professionals are often drowning in data.

The tens (or even hundreds) of companies that they track each produce hundreds of data points, documents, and news — any of which could inform a change in corporate strategy or competitive response.

CI professionals can easily miss valuable information as they spend hours searching for relevant and actionable nuggets, or even just a more general understanding of market dynamics.

So how should analysts surface through this data deluge to find missing insights?

We came up with 6 key questions that you should be asking yourself (and your team) as you track your peers’ activities. The answers to these questions will help define your CI strategy.

 

 

 

 

 

 

 

Why It Matters

Staying on top of your competitors’ news, events, and more can help you plan and time your own strategies — whether those be announcements, launches, or promotional activities.

Following a competitor’s activities will help you understand which media outlets they have partnered with, and in turn, how they are positioning their brand and/or product(s) within those publications.

Knowing where competitors hold events can also give insight ?into their target demographics. You’ll also be able to shed light ?on the types of activities where they invest most of their marketing spend.

How It Works

Some tools allow you to set up instantaneous email alerts for specific companies, document types, and keywords. You may also want to create themed watchlists to look at multiple competitors at once.

Why It Matters

How well are your competitors doing, by the numbers? The documents that they’ve filed with the SEC are a gold mine ?of information.

To get insight into a competitor’s next move, search the company’s annual 10-K filing, specifically within the “Outlook” or “Use of Proceeds” sections, which show if the company has used capital to expand or grow, to repay debt, or to support general operations. Can you see specific plans for this capital?

How It Works

Use a tool that allows you to search across all document types, and even within specific document sections.

Get alerted when new competitor documents are released, whether they be a 10-Q covering the company’s quarterly performance, an 8-K for material events (acquisitions, changes
in corporate management, or updated fiscal year end-date), ?or an S-1 for an IPO.

Why It Matters

Annual reports (among many other document types) can also give good insight into product research and development (R&D), which can include everything from initial product design to compliance testing, to new market deployment.

Track exactly how much your competitors are spending on innovation.

How It Works

Get alerted on specific company and keyword searches like “NVDA > R&D > automation,” so you’re always in the know about your competitor’s product roadmap.

 

Want to know the other 3 questions you should be asking? Download the full whitepaper.

You can also check out the webinar we ran last week around the same topic! Watch Webinar.

Is Pumpkin Spice Over?

About a year ago, we wrote a popular blog post on pumpkin spice season. Based on Twitter data and search trends, we could see that pumpkin spice season had started earlier than ever, and was bigger than ever. 

Today, we declare that pumpkin spice is over, using the same data sets. 

Looking at the stacked search trends below, we can see that pumpkin spice was off to an ever-earlier and stronger season in August, running well above prior years (see light blue line). However, the trend peaked below last year’s peak (momentum investors know this sign), and has been tracking below recent years since then. 

We tracked down a couple of notable pumpkin spice season “kick-off” events this year.

Convenience store chain 7-11 announced that their pumpkin spice lattes were back on August 14, 2019.

Dunkin’ Brands (parent of ice cream chain Baskin Robbins) did not highlight the flavor until August 26, 2019.

Things really picked up in early September with releases from Hostess Brands (Nasdaq: TWNK), Restaurant Brands’ Tim Horton’s division (NYSE: QSR), Krispy Kreme, and others.  

Perhaps the biggest success story this pumpkin spice season came from Hormel (NYSE: HRL), which released a limited edition version of their legendary Spam: “[the] limited edition flavor features a blend of seasonal spices including cinnamon, clove, allspice and nutmeg to give it a subtle sweetness.” The September 23rd release was followed by another press release a few hours later mentioning that the $8.98/2-pack item was sold out from both Walmart’s e-commerce site and spam.com in under seven hours. 

Photo source: Hormel PR

For the final word on pumpkin spice, we used our Twitter data integration to see the trends around Starbucks (Nasdaq: SBUX), and their high-profile pumpkin spice beverages. Based on Twitter mentions, we note that, very much like the search trends, YoY mentions are down, and with a shorter “tail” versus prior years. Pumpkin spice just isn’t that big of a deal any more. (Interactive chart link)

To find out how Sentieo’s full workflow solution can help you harness multiple data sets, track promotional intensity, create visualizations, and more, please get in touch