Fast-food company Yum! Brands (NYSE: YUM) will be reporting results this Wednesday before market hours. Here’s what investors should know.
Yum! Brands beat analysts’ revenue expectations last quarter, reporting revenues of $2.51 billion, up 6.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ same-store sales estimates.
Is Yum! Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Yum! Brands’s revenue to grow 14.5% year on year, improving from the 11.8% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Yum! Brands has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Yum! Brands’s peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 3.5%, missing analysts’ expectations by 1%, and Kura Sushi reported revenues up 23.3%, topping estimates by 2.5%. Kura Sushi traded down 17.8% following the results.
Read our full analysis of Domino’s results here and Kura Sushi’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 12.1% on average over the last month. Yum! Brands is down 2.3% during the same time and is heading into earnings with an average analyst price target of $172.25 (compared to the current share price of $151.00).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
