The upcoming report from Yum Brands (YUM) is expected to reveal quarterly earnings of $1.29 per share, indicating an increase of 12.2% compared to the year-ago period. Analysts forecast revenues of $1.84 billion, representing an increase of 15.1% year over year.
The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Yum metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus among analysts is that 'Revenues- Company sales' will reach $641.29 million. The estimate indicates a change of +35.3% from the prior-year quarter.
Analysts forecast 'Revenues- Franchise and property revenues' to reach $805.64 million. The estimate suggests a change of +6.4% year over year.
Based on the collective assessment of analysts, 'Revenues- Franchise contributions for advertising and other services' should arrive at $395.29 million. The estimate indicates a year-over-year change of +7.7%.
Analysts predict that the 'Revenues- KFC Division- Franchise contributions for advertising and other services' will reach $139.66 million. The estimate indicates a change of +7.4% from the prior-year quarter.
It is projected by analysts that the 'Number of restaurants - Franchise & License - KFC Division' will reach 31,568. Compared to the current estimate, the company reported 30,029 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Total restaurants - Taco Bell Division' of 8,794. The estimate is in contrast to the year-ago figure of 8,555.
The consensus estimate for 'Number of restaurants - Company-owned - Taco Bell Division' stands at 509. Compared to the present estimate, the company reported 484 in the same quarter last year.
According to the collective judgment of analysts, 'Number of restaurants - Franchise & License - Taco Bell Division' should come in at 8,284. Compared to the current estimate, the company reported 8,071 in the same quarter of the previous year.
The average prediction of analysts places 'Total restaurants - Pizza Hut Division' at 20,044. The estimate compares to the year-ago value of 19,942.
Analysts expect 'Number of restaurants - Company-owned - Pizza Hut Division' to come in at 35. Compared to the present estimate, the company reported 7 in the same quarter last year.
Analysts' assessment points toward 'Number of restaurants - Total' reaching 61,301. The estimate is in contrast to the year-ago figure of 59,129.
The combined assessment of analysts suggests that 'Number of restaurants - Company-owned - KFC Division' will likely reach 503. Compared to the current estimate, the company reported 222 in the same quarter of the previous year.
View all Key Company Metrics for Yum here>>>
Shares of Yum have demonstrated returns of -6.4% over the past month compared to the Zacks S&P 500 composite's -4.8% change. With a Zacks Rank #3 (Hold), YUM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Yum! Brands, Inc. (YUM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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