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YUM! Brands (YUM) Gears Up for Q1 Earnings: What's in Store?
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YUM! Brands, Inc. (YUM - Free Report) is scheduled to report first-quarter 2023 results on May 3, before the opening bell. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by 4.8%.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.14, indicating a gain of 8.6% from the prior-year quarter. The consensus estimate for revenues is pegged at $1.63 billion, suggesting growth of 5.5% from $1.55 billion in the year-ago quarter.
Factors to Note
Yum! Brands’ first-quarter 2023 results are likely to gain from robust same-store sales growth, unit expansion and strong Taco Bell performance. The company is likely to have benefited from robust digital sales. In the quarter to be reported, we expect same store sales to increase 3.3%.
In first-quarter 2023, our model predicts Pizza Hut, Taco Bell and Habit Burger revenues to increase 3.6%, 1% and 16.7% year over year to $253.3 million, $521.9 million and $147 million, respectively. However, our model estimates KFC revenues to decline 0.1% year over year to $659.1 million.
Rising inflation levels are likely to have impacted margins in the to-be-reported quarter. An increase in the cost of employee wages, benefits and insurance, and other operating costs such as rent and energy costs, put significant pressure on the company’s margins. Our model predicts total costs and expenses to increase 3.8% year over year.
Our proven model doesn’t conclusively predict an earnings beat for Yum! Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Yum! Brands has an Earnings ESP (difference between the Most Accurate Estimate and the Zacks Consensus Estimate) of -0.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Yum! Brands currently carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported.
Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +0.81% and a Zacks Rank #3.
Shares of Brinker International have increased 3.7% in the past year. EAT has a trailing four-quarter earnings surprise of 11.5%, on average.
The Wendy's Company (WEN - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank #3.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Shares of Shake Shack have declined 10.1% in the past year. SHAK’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 39.8%, on average.
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YUM! Brands (YUM) Gears Up for Q1 Earnings: What's in Store?
YUM! Brands, Inc. (YUM - Free Report) is scheduled to report first-quarter 2023 results on May 3, before the opening bell. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by 4.8%.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.14, indicating a gain of 8.6% from the prior-year quarter. The consensus estimate for revenues is pegged at $1.63 billion, suggesting growth of 5.5% from $1.55 billion in the year-ago quarter.
Factors to Note
Yum! Brands’ first-quarter 2023 results are likely to gain from robust same-store sales growth, unit expansion and strong Taco Bell performance. The company is likely to have benefited from robust digital sales. In the quarter to be reported, we expect same store sales to increase 3.3%.
In first-quarter 2023, our model predicts Pizza Hut, Taco Bell and Habit Burger revenues to increase 3.6%, 1% and 16.7% year over year to $253.3 million, $521.9 million and $147 million, respectively. However, our model estimates KFC revenues to decline 0.1% year over year to $659.1 million.
Rising inflation levels are likely to have impacted margins in the to-be-reported quarter. An increase in the cost of employee wages, benefits and insurance, and other operating costs such as rent and energy costs, put significant pressure on the company’s margins. Our model predicts total costs and expenses to increase 3.8% year over year.
Yum! Brands, Inc. Price and EPS Surprise
Yum! Brands, Inc. price-eps-surprise | Yum! Brands, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Yum! Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Yum! Brands has an Earnings ESP (difference between the Most Accurate Estimate and the Zacks Consensus Estimate) of -0.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Yum! Brands currently carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported.
Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +0.81% and a Zacks Rank #3.
Shares of Brinker International have increased 3.7% in the past year. EAT has a trailing four-quarter earnings surprise of 11.5%, on average.
The Wendy's Company (WEN - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank #3.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Shake Shack Inc. (SHAK - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Shake Shack have declined 10.1% in the past year. SHAK’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 39.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.