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YUM! Brands (YUM) Gears Up for Q4 Earnings: What's in Store?
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YUM! Brands, Inc. (YUM - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 7, before the opening bell. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by 14.3%.
Q4 Estimates
The Zacks Consensus Estimate for earnings per share is pegged at $1.39, indicating a rise of 6.1% from the prior-year quarter reported figure. The Zacks Consensus Estimate for revenues is pegged at $2.12 billion, suggesting growth of 4.8% from $2.02 billion in the prior-year quarter.
Factors to Note
Yum! Brands is anticipated to have benefited from strong same-store sales growth, the expansion of units and a stellar performance from KFC. The company's emphasis on its menu strategy, featuring Culinary Forward limited time offerings, along with the integration of recommended ordering through an AI machine learning module and effective marketing campaigns, is expected to have positively impacted its overall performance in the quarter under review. It is anticipated that same-store sales will demonstrate growth of 1.8% in the to-be-reported quarter.
In fourth-quarter 2023, our model predicts KFC, Pizza Hut, Taco Bell and Habit Burger revenues to increase 9.8%, 2.3%, 0.6% and 10.3% from the year-ago levels to $870.9 million, $294.7 million, $770.2 million and $189.7 million, respectively.
High inflation levels are likely to have affected margins in the to-be-reported quarter. Also, an increase in the cost of employee wages, benefits and insurance, and other operating costs such as rent and energy costs, is expected to have put significant pressure on the company’s margins. Our model predicts total costs and expenses to increase 3.4% from the year-earlier levels.
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 -1.21%. 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 worth considering from the Zacks Retail-Wholesale space, as our model shows that these have the right combination of elements to beat on earnings this season.
CMG’s earnings for the quarter under review are expected to increase 17.4%. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 5.8%.
Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 2.
DRI is expected to register 12.8% growth in earnings for the quarter to be reported. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.2%.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank of 3.
JACK’s earnings for the to-be-reported quarter are expected to decline 3%. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 10.1%.
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YUM! Brands (YUM) Gears Up for Q4 Earnings: What's in Store?
YUM! Brands, Inc. (YUM - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 7, before the opening bell. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by 14.3%.
Q4 Estimates
The Zacks Consensus Estimate for earnings per share is pegged at $1.39, indicating a rise of 6.1% from the prior-year quarter reported figure. The Zacks Consensus Estimate for revenues is pegged at $2.12 billion, suggesting growth of 4.8% from $2.02 billion in the prior-year quarter.
Factors to Note
Yum! Brands is anticipated to have benefited from strong same-store sales growth, the expansion of units and a stellar performance from KFC. The company's emphasis on its menu strategy, featuring Culinary Forward limited time offerings, along with the integration of recommended ordering through an AI machine learning module and effective marketing campaigns, is expected to have positively impacted its overall performance in the quarter under review. It is anticipated that same-store sales will demonstrate growth of 1.8% in the to-be-reported quarter.
In fourth-quarter 2023, our model predicts KFC, Pizza Hut, Taco Bell and Habit Burger revenues to increase 9.8%, 2.3%, 0.6% and 10.3% from the year-ago levels to $870.9 million, $294.7 million, $770.2 million and $189.7 million, respectively.
High inflation levels are likely to have affected margins in the to-be-reported quarter. Also, an increase in the cost of employee wages, benefits and insurance, and other operating costs such as rent and energy costs, is expected to have put significant pressure on the company’s margins. Our model predicts total costs and expenses to increase 3.4% from the year-earlier levels.
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 -1.21%. 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 worth considering from the Zacks Retail-Wholesale space, as our model shows that these have the right combination of elements to beat on earnings this season.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CMG’s earnings for the quarter under review are expected to increase 17.4%. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 5.8%.
Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 2.
DRI is expected to register 12.8% growth in earnings for the quarter to be reported. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.2%.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank of 3.
JACK’s earnings for the to-be-reported quarter are expected to decline 3%. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 10.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.