Back to top

Image: Bigstock

Countdown to Yum (YUM) Q3 Earnings: A Look at Estimates Beyond Revenue and EPS

Read MoreHide Full Article

Wall Street analysts expect Yum Brands (YUM - Free Report) to post quarterly earnings of $1.41 per share in its upcoming report, which indicates a year-over-year decline of 2.1%. Revenues are expected to be $1.89 billion, up 10.6% from the year-ago quarter.

The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

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 investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain Yum metrics that are commonly tracked and forecasted by Wall Street analysts.

It is projected by analysts that the 'Revenues- Company sales' will reach $639.02 million. The estimate indicates a year-over-year change of +25.3%.

The consensus among analysts is that 'Revenues- Franchise and property revenues' will reach $826.70 million. The estimate indicates a year-over-year change of +3.9%.

According to the collective judgment of analysts, 'Revenues- Franchise contributions for advertising and other services' should come in at $422.92 million. The estimate indicates a change of +5.2% from the prior-year quarter.

Analysts' assessment points toward 'Revenues- KFC Division - Franchise contributions for advertising and other services' reaching $166.10 million. The estimate indicates a year-over-year change of +5.8%.

Analysts expect 'System same-store sales - KFC Division - YoY change' to come in at -1.6%. The estimate is in contrast to the year-ago figure of 6%.

Based on the collective assessment of analysts, 'System same-store sales - Taco Bell Division - YoY change' should arrive at 2.9%. Compared to the present estimate, the company reported 8% in the same quarter last year.

The average prediction of analysts places 'Number of restaurants - Franchise & License - KFC Division' at 30,779. The estimate is in contrast to the year-ago figure of 28,833.

The combined assessment of analysts suggests that 'Total restaurants - Taco Bell Division' will likely reach 8,657. The estimate is in contrast to the year-ago figure of 8,385.

Analysts predict that the 'Number of restaurants - Company-owned - Taco Bell Division' will reach 492. Compared to the current estimate, the company reported 477 in the same quarter of the previous year.

The consensus estimate for 'Number of restaurants - Franchise & License - Taco Bell Division' stands at 8,165. Compared to the current estimate, the company reported 7,908 in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Total restaurants - Pizza Hut Division' of 20,043. Compared to the present estimate, the company reported 19,469 in the same quarter last year.

Analysts forecast 'Number of restaurants - Company-owned - Pizza Hut Division' to reach 7. The estimate compares to the year-ago value of 8.

View all Key Company Metrics for Yum here>>>

Over the past month, Yum shares have recorded returns of -4.4% versus the Zacks S&P 500 composite's +1% change. Based on its Zacks Rank #4 (Sell), YUM will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Yum! Brands, Inc. (YUM) - free report >>

Published in