What To Expect From Yum China's (YUMC) Q2 Earnings

Fast-food company Yum China (NYSE:YUMC) will be announcing earnings results this Tuesday morning. Here’s what investors should know.

Yum China missed analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $2.98 billion, flat year on year. It was a softer quarter for the company, with a miss of analysts’ EBITDA estimates and a slight miss of analysts’ EPS estimates.

Is Yum China a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Yum China’s revenue to grow 4.6% year on year to $2.80 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yum China has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Yum China’s peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. El Pollo Loco delivered year-on-year revenue growth of 3%, beating analysts’ expectations by 0.6%, and Domino's reported revenues up 4.3%, in line with consensus estimates. El Pollo Loco traded up 1.4% following the results while Domino's was also up 3%.

Read our full analysis of El Pollo Loco’s results here and Domino’s results here.

The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the traditional fast food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.6% on average over the last month. Yum China is down 2.3% during the same time and is heading into earnings with an average analyst price target of $58.21 (compared to the current share price of $46.50).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.