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YUM! Brands Q1 Earnings Surpass Estimates, Revenues Miss
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YUM! Brands, Inc. (YUM - Free Report) reported first-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
The company’s performance reflects solid contributions from the KFC and Taco Bell divisions. On the digital front, the company reported meaningful progress, with digital sales nearing $9 billion and accounting for 55% of total sales. Franchisee feedback on Yum!’s proprietary digital platform, Byte by Yum!, remained positive, reinforcing the brand’s strategic push toward tech-driven growth.
YUM’s Q1 Earnings and Revenue Discussion
For the quarter under review, YUM reported adjusted earnings per share (EPS) of $1.30, outpacing the Zacks Consensus Estimate of $1.29 by 0.8%. The bottom line increased 13% from $1.15 reported in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Quarterly revenues of $1.79 billion missed the consensus mark of $1.83 billion. The top line rose 12% on a year-over-year basis.
Yum! Brands, Inc. Price, Consensus and EPS Surprise
Worldwide system sales — excluding foreign currency translation — increased 5% year over year, with Taco Bell rising 11% and KFC rising 5%. The metric fell 3% year over year for Pizza Hut.
Divisional Performance of YUM
YUM! Brands primarily announces results under four divisions: KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
KFC: Revenues at the KFC division totaled $773 million, up 22% year over year. Our model predicted the metric to increase by 15% from a year ago. During the quarter, the segment’s comps grew 2% year over year against a 2% decline reported in the prior-year quarter.
The division’s operating margin contracted 660 basis points (bps) year over year to 42.9%. In the quarter, the KFC division opened 528 gross new restaurants.
Pizza Hut: This division’s revenues amounted to $231 million, down 3% year over year. Our model predicted the metric to be $253.3 million. Comps decreased 2% year over year compared with the 7% fall reported in the year-ago quarter.
The division’s operating margin contracted 670 bps year over year to 32.3%. The Pizza Hut division opened 198 gross new restaurants during the first quarter.
Taco Bell: The quarterly revenues of this division were $657 million, up 10% year over year. Our model predicted the metric to increase 10.2% from the year-earlier level. Comps increased 9% year over year compared with 1% growth reported in the prior-year quarter.
The division’s operating margin expanded 190 bps year over year to 36.7%. Taco Bell opened 24 gross new restaurants.
Habit Burger Grill: The division’s revenues amounted to $128 million, compared with $130 million reported in the prior-year quarter. Our model predicted the metric to increase 15.8% year over year.
During the quarter, the segment’s comps declined 3% year over year. In the quarter, the division opened one gross new restaurant.
Other Financial Details of YUM! Brands
As of March 31, 2025, the company’s cash and cash equivalents totaled $607 million compared with $616 million at 2024-end. Long-term debt, as of the end of the first quarter, was $11.33 billion compared with $11.3 billion at 2024-end.
YUM’s Long-Term Outlook
As part of its strategic roadmap, the company continues to reaffirm the long-term financial targets first introduced in 2022. Management remains confident in delivering approximately 5% annual unit growth, alongside a 7% increase in system sales, excluding the effects of foreign currency and any 53rd week. The company is targeting at least 8% growth in core operating profit, adjusted for currency movements and calendar anomalies.
Fastenal Company’s (FAST - Free Report) first-quarter 2025 adjusted earnings came in line with the Zacks Consensus Estimate and on par year over year. On the other hand, net sales surpassed the consensus mark and grew year over year.
The top-line growth was attributable to improved customer contract signings over the past 12 months, which were partially offset by sluggish underlying business activity. The bottom line was adversely impacted by higher fleet and transportation costs, along with increased labor costs.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported mixed first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
Chipotle's first-quarter results were affected by various headwinds, including unfavorable weather conditions and reduced consumer spending. Nonetheless, Chipotle has made notable strides in enhancing restaurant operations, advancing back-of-house innovations and expanding its brand presence both domestically and internationally.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics declined on a year-over-year basis.
Dave & Buster’s reported a weak fourth quarter but expressed confidence in the company’s direction as recent trends show signs of improvement. The current leadership team is undoing several decisions made by prior management in marketing, operations and capital spending, and is returning to a more disciplined, fundamentals-driven strategy.
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YUM! Brands Q1 Earnings Surpass Estimates, Revenues Miss
YUM! Brands, Inc. (YUM - Free Report) reported first-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
The company’s performance reflects solid contributions from the KFC and Taco Bell divisions. On the digital front, the company reported meaningful progress, with digital sales nearing $9 billion and accounting for 55% of total sales. Franchisee feedback on Yum!’s proprietary digital platform, Byte by Yum!, remained positive, reinforcing the brand’s strategic push toward tech-driven growth.
YUM’s Q1 Earnings and Revenue Discussion
For the quarter under review, YUM reported adjusted earnings per share (EPS) of $1.30, outpacing the Zacks Consensus Estimate of $1.29 by 0.8%. The bottom line increased 13% from $1.15 reported in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Quarterly revenues of $1.79 billion missed the consensus mark of $1.83 billion. The top line rose 12% on a year-over-year basis.
Yum! Brands, Inc. Price, Consensus and EPS Surprise
Yum! Brands, Inc. price-consensus-eps-surprise-chart | Yum! Brands, Inc. Quote
Worldwide system sales — excluding foreign currency translation — increased 5% year over year, with Taco Bell rising 11% and KFC rising 5%. The metric fell 3% year over year for Pizza Hut.
Divisional Performance of YUM
YUM! Brands primarily announces results under four divisions: KFC, Pizza Hut, Taco Bell and Habit Burger Grill.
KFC: Revenues at the KFC division totaled $773 million, up 22% year over year. Our model predicted the metric to increase by 15% from a year ago. During the quarter, the segment’s comps grew 2% year over year against a 2% decline reported in the prior-year quarter.
The division’s operating margin contracted 660 basis points (bps) year over year to 42.9%. In the quarter, the KFC division opened 528 gross new restaurants.
Pizza Hut: This division’s revenues amounted to $231 million, down 3% year over year. Our model predicted the metric to be $253.3 million. Comps decreased 2% year over year compared with the 7% fall reported in the year-ago quarter.
The division’s operating margin contracted 670 bps year over year to 32.3%. The Pizza Hut division opened 198 gross new restaurants during the first quarter.
Taco Bell: The quarterly revenues of this division were $657 million, up 10% year over year. Our model predicted the metric to increase 10.2% from the year-earlier level. Comps increased 9% year over year compared with 1% growth reported in the prior-year quarter.
The division’s operating margin expanded 190 bps year over year to 36.7%. Taco Bell opened 24 gross new restaurants.
Habit Burger Grill: The division’s revenues amounted to $128 million, compared with $130 million reported in the prior-year quarter. Our model predicted the metric to increase 15.8% year over year.
During the quarter, the segment’s comps declined 3% year over year. In the quarter, the division opened one gross new restaurant.
Other Financial Details of YUM! Brands
As of March 31, 2025, the company’s cash and cash equivalents totaled $607 million compared with $616 million at 2024-end. Long-term debt, as of the end of the first quarter, was $11.33 billion compared with $11.3 billion at 2024-end.
YUM’s Long-Term Outlook
As part of its strategic roadmap, the company continues to reaffirm the long-term financial targets first introduced in 2022. Management remains confident in delivering approximately 5% annual unit growth, alongside a 7% increase in system sales, excluding the effects of foreign currency and any 53rd week. The company is targeting at least 8% growth in core operating profit, adjusted for currency movements and calendar anomalies.
YUM’s Zacks Rank
YUM! Brands currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
Fastenal Company’s (FAST - Free Report) first-quarter 2025 adjusted earnings came in line with the Zacks Consensus Estimate and on par year over year. On the other hand, net sales surpassed the consensus mark and grew year over year.
The top-line growth was attributable to improved customer contract signings over the past 12 months, which were partially offset by sluggish underlying business activity. The bottom line was adversely impacted by higher fleet and transportation costs, along with increased labor costs.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported mixed first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
Chipotle's first-quarter results were affected by various headwinds, including unfavorable weather conditions and reduced consumer spending. Nonetheless, Chipotle has made notable strides in enhancing restaurant operations, advancing back-of-house innovations and expanding its brand presence both domestically and internationally.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics declined on a year-over-year basis.
Dave & Buster’s reported a weak fourth quarter but expressed confidence in the company’s direction as recent trends show signs of improvement. The current leadership team is undoing several decisions made by prior management in marketing, operations and capital spending, and is returning to a more disciplined, fundamentals-driven strategy.