Wall Street analysts forecast that Yum Brands (YUM) will report quarterly earnings of $1.58 per share in its upcoming release, pointing to a year-over-year increase of 25.4%. It is anticipated that revenues will amount to $2.32 billion, exhibiting an increase of 14% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 1.6% lower 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.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Yum metrics that Wall Street analysts commonly model and monitor.
The combined assessment of analysts suggests that 'Revenues- Company sales' will likely reach $827.01 million. The estimate indicates a year-over-year change of +27.8%.
According to the collective judgment of analysts, 'Revenues- Franchise and property revenues' should come in at $966.14 million. The estimate points to a change of +7.8% from the year-ago quarter.
The consensus among analysts is that 'Revenues- Franchise contributions for advertising and other services' will reach $523.90 million. The estimate indicates a year-over-year change of +6.3%.
Analysts predict that the 'Revenues- KFC Division- Franchise contributions for advertising and other services' will reach $188.21 million. The estimate points to a change of +7.6% from the year-ago quarter.
Analysts expect 'System same-store sales - Taco Bell Division - YoY change' to come in at 4.0%. Compared to the present estimate, the company reported 3% in the same quarter last year.
The average prediction of analysts places 'Number of restaurants - Franchise & License - KFC Division' at 31,542. The estimate is in contrast to the year-ago figure of 29,680.
The consensus estimate for 'Total restaurants - Taco Bell Division' stands at 8,780. The estimate compares to the year-ago value of 8,564.
Analysts' assessment points toward 'Number of restaurants - Company-owned - Taco Bell Division' reaching 498. Compared to the current estimate, the company reported 483 in the same quarter of the previous year.
It is projected by analysts that the 'Number of restaurants - Franchise & License - Taco Bell Division' will reach 8,282. The estimate is in contrast to the year-ago figure of 8,081.
Based on the collective assessment of analysts, 'Total restaurants - Pizza Hut Division' should arrive at 20,272. The estimate compares to the year-ago value of 19,866.
Analysts forecast 'Number of restaurants - Company-owned - Pizza Hut Division' to reach 7. Compared to the present estimate, the company reported 7 in the same quarter last year.
The collective assessment of analysts points to an estimated 'Number of restaurants - Total' of 61,442. The estimate is in contrast to the year-ago figure of 58,708.
View all Key Company Metrics for Yum here>>>
Over the past month, shares of Yum have returned -2.2% versus the Zacks S&P 500 composite's +2.7% change. Currently, YUM carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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