Fast-food company Yum! Brands (NYSE:YUM)
will be reporting earnings tomorrow morning. Here’s what you need to know.
Yum! Brands met analysts’ revenue expectations last quarter, reporting revenues of $2.36 billion, up 16% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and same-store sales in line with analysts’ estimates.
This quarter, analysts are expecting Yum! Brands’s revenue to grow 15.6% year on year to $1.85 billion, a reversal from the 2.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
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 2.5%, missing analysts’ expectations by 1.2%, and Darden reported revenues up 6.2%, falling short of estimates by 1.7%. Darden traded up 6.2% following the results.
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 restaurants stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. Yum! Brands is down 6.1% during the same time and is heading into earnings with an average analyst price target of $154.87 (compared to the current share price of $147.75).
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