Yum! Brands Gears Up for Q1 2025 Earnings Announcement

Yum! Brands, Inc. (YUM), valued at $41.1 billion, is a leading entity in the quick-service restaurant sector. The company operates through four primary segments: KFC, Pizza Hut, Taco Bell, and Habit Burger Grill. With a presence in over 150 countries and territories, each brand holds a prominent position in its food category.

Upcoming Earnings Release

Based in Louisville, Kentucky, Yum! Brands is set to release its fiscal Q1 2025 earnings before the market opens on Wednesday, April 30. Analysts anticipate an adjusted EPS of $1.29, marking a 12.2% increase from $1.15 in the previous year’s quarter. Historically, Yum! has met Wall Street’s earnings expectations in two of the last four quarters while falling short in the other two.

Fiscal 2025 Projections

For fiscal 2025, analysts predict an adjusted EPS of $5.99, representing a 9.3% increase from $5.48 in fiscal 2024. Furthermore, projections indicate adjusted EPS could rise by 11.7% year-over-year to $6.69 in fiscal 2026.

Stock Performance

Yum! Brands shares have risen by 4.1% over the past 52 weeks. However, this performance lags behind the S&P 500 Index’s ($SPX) 8.2% increase and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 11.4% return during the same timeframe.

Recent Financial Results

On February 6, Yum! Brands’ shares surged 9.7% after the company announced strong Q4 2024 results. Highlights included an adjusted EPS of $1.61 and revenue of $2.4 billion, both exceeding expectations. The 28% year-over-year growth in EPS, paired with a 16% revenue increase, impressed investors. Notably, Taco Bell reported a 14% system sales growth and a 5% increase in U.S. same-store sales. Additionally, robust expansion in KFC International contributed positively to market sentiment.

Digital sales are noteworthy as they accounted for more than 50% of total transactions in 2024, demonstrating Yum!’s effective strategies in both digital transformation and global market expansion.

Analyst Sentiment

The consensus view among analysts regarding Yum! Brands’ Stock is cautiously optimistic, reflected in a “Moderate Buy” rating overall. From the 27 analysts monitoring the Stock, six recommend a “Strong Buy,” while 21 suggest “Hold.” Currently, YUM is trading below the average analyst price target of $156.62.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. The information contained herein is for informational purposes only. For more details, please refer to the Barchart Disclosure Policy.
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