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Yum! Brands (YUM) Beats on Q4 Earnings, Misses Revenues

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Louisville, KY-based Yum! Brands, Inc. (YUM - Free Report) is a leading multi-branding company which offers consumers more choice and convenience at one outlet. Its brands - KFC, Pizza Hut and Taco Bell - are regarded as the global leaders of the chicken, pizza and Mexican-style food categories.

Yum! Brands endeavors to drive growth by employing greater focus on the development of its three iconic global brands, increasing its franchise ownership, and creating a leaner, more efficient cost structure.

Particularly, augmented pace of unit development, along with increased investments in technology-driven initiatives is anticipated to drive top-line growth.

However, a soft consumer spending environment in the U.S. restaurant space, slowdown in emerging markets along with negative currency translation raises concern.

Investors should note that over the past month, the stock has witnessed one downward estimate revision for the fourth quarter 2017. YUM’s earnings have been mostly strong over the past few quarters. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, with an average beat of 7.77%. Meanwhile, revenues posted positive surprises in three of the trailing four quarters.

Yum! Brands, Inc. Price

YUM currently has a Zacks Rank #3 (Hold) but that could change following Yum! Brands’ earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: YUM beats on earnings. Our consensus earnings estimate called for earnings per share of 80 cents per share, and the company reported earnings of 96 cents per share.

Revenues: YUM reported revenues of $1.58 billion. This missed our consensus estimate of nearly $1.61 billion.

Key Stats to Note: In fourth-quarter 2017, comps at the KFC, Pizza Hut and Taco Bell division were up 3%, 1% and 2%, respectively.

Check back later for our full write up on this YUM earnings report!

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