Yum! Brands Set to Release Q4 Earnings Amid Mixed Analyst Expectations
Yum! Brands, Inc. (YUM), known for its popular chains such as KFC, Taco Bell, and Pizza Hut, holds a market cap of $34.5 billion. The company boasts a vast presence in over 150 countries, continuously expanding through its franchise operations. It will announce its fiscal Q4 earnings before the market opens on Thursday, February 6.
Analysts Project Strong Earnings Growth
Analysts predict Yum! Brands will report a profit of $1.59 per share for the quarter, reflecting a 26.2% increase from $1.26 per share in the same period last year. YUM has, however, only surpassed Wall Street’s earnings expectations in one of the last four quarters, falling short three times. Recently, the company missed the consensus EPS estimate by 2.8%.
Future Earnings Forecasts Show Promise
Looking ahead to fiscal 2024, experts estimate YUM will deliver an EPS of $5.46, which is a 5.6% increase from $5.17 in fiscal 2023. The projections for fiscal 2025 indicate further growth, with EPS anticipated to reach $6, marking a year-over-year rise of 9.9%.
Stock Performance Compared to Market Trends
Over the last 52 weeks, YUM has declined 3.5%, underperforming both the S&P 500 Index’s ($SPX) 22.6% gain and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 29.3% increase year-to-date.
Mixed Results with Promising Developments
Despite reporting weaker-than-expected Q3 adjusted EPS of $1.37 and revenue of $1.8 billion, YUM’s shares saw a 1.5% rise on November 5. This increase can be attributed to positive performance from Taco Bell and KFC, alongside the opening of 685 new KFC locations and 49 Taco Bell units worldwide. Yum! Brands also introduced innovative technologies, such as drive-thru Voice AI at Taco Bell, enhancing customer experience and overall operations.
Analysts Remain Cautiously Optimistic
The consensus view on YUM stock is “Moderate Buy,” reflecting a cautious optimism among analysts. Out of the 27 analysts tracking the stock, seven rate it as a “Strong Buy,” one as a “Moderate Buy,” and 19 as a “Hold.” This sentiment has softened compared to three months ago, when nine analysts had rated it as a “Strong Buy.”
Currently, YUM is trading below the average analyst price target of $144.79.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
