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YUM! Brands' (YUM) to Report Q2 Earnings: What's in Store?
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Yum! Brands, Inc. (YUM - Free Report) is scheduled to release second-quarter 2023 results on Aug 2, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 7%.
How Are Estimates Trending?
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at $1.23, indicating growth of 17.1% from $1.05 registered in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,749 million, suggesting growth of 6.9% from the prior-year quarter’s figure.
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Yum! Brands’ second-quarter top line is expected to increase year over year, courtesy of strong Taco Bell performance, development efforts and strong value propositions (through menu innovation offerings). This and the continued return of dine-in traffic, digital initiatives and strategic third-party partnerships are likely to have driven comps improvement in the to-be-reported quarter.
For the said quarter, our model predicts Pizza Hut, Taco Bell and Habit Burger revenues to increase 2.7%, 10.2% and 25% year over year to $241.3 million, $645.5 million and $172.6 million, respectively. However, our model estimates KFC revenues to decline 0.3% year over year to $674.9 million.
Inflationary pressures in certain international markets are likely to have hurt margins in the second quarter. Our model predicts, company restaurant expenses to be $453.5 million, up 9.3% year over year. Per the model, general and administrative expenses are expected to increase 7% year over year to $271.8 million.
What Our Model Says
Our proven model predicts 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 odds of an earnings beat.
Earnings ESP: YUM! Brands has an Earnings ESP of +5.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks worth considering 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.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #1.
Shares of Dave & Buster's have gained 19.7% in the past year. PLAY’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.8%.
Restaurant Brands International Inc. (QSR - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2.
Shares of Restaurant Brands have gained 41.2% in the past year. QSR’s earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 12.9%, on average.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #3.
Shares of Dollar Tree have declined 8.6% in the past year. DLTR’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 0.4%.
Image: Bigstock
YUM! Brands' (YUM) to Report Q2 Earnings: What's in Store?
Yum! Brands, Inc. (YUM - Free Report) is scheduled to release second-quarter 2023 results on Aug 2, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 7%.
How Are Estimates Trending?
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at $1.23, indicating growth of 17.1% from $1.05 registered in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,749 million, suggesting growth of 6.9% from the prior-year quarter’s figure.
Yum! Brands, Inc. Price and EPS Surprise
Yum! Brands, Inc. price-eps-surprise | Yum! Brands, Inc. Quote
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Yum! Brands’ second-quarter top line is expected to increase year over year, courtesy of strong Taco Bell performance, development efforts and strong value propositions (through menu innovation offerings). This and the continued return of dine-in traffic, digital initiatives and strategic third-party partnerships are likely to have driven comps improvement in the to-be-reported quarter.
For the said quarter, our model predicts Pizza Hut, Taco Bell and Habit Burger revenues to increase 2.7%, 10.2% and 25% year over year to $241.3 million, $645.5 million and $172.6 million, respectively. However, our model estimates KFC revenues to decline 0.3% year over year to $674.9 million.
Inflationary pressures in certain international markets are likely to have hurt margins in the second quarter. Our model predicts, company restaurant expenses to be $453.5 million, up 9.3% year over year. Per the model, general and administrative expenses are expected to increase 7% year over year to $271.8 million.
What Our Model Says
Our proven model predicts 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 odds of an earnings beat.
Earnings ESP: YUM! Brands has an Earnings ESP of +5.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat on Earnings
Here are some other stocks worth considering 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.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #1.
Shares of Dave & Buster's have gained 19.7% in the past year. PLAY’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.8%.
Restaurant Brands International Inc. (QSR - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2.
Shares of Restaurant Brands have gained 41.2% in the past year. QSR’s earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 12.9%, on average.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #3.
Shares of Dollar Tree have declined 8.6% in the past year. DLTR’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 0.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.