Fast-food company Yum! Brands (NYSE: YUM) will be reporting earnings this Thursday morning. Here’s what to look for.
Yum! Brands beat analysts’ revenue expectations last quarter, reporting revenues of $2.06 billion, up 15.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ same-store sales and EPS estimates.
Is Yum! Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Yum! Brands’s revenue to grow 12.6% year on year, improving from the 9.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Yum! Brands has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Yum! Brands’s peers in the restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 4.3%, beating analysts’ expectations by 1.2%, and The Cheesecake Factory reported revenues up 7.7%, topping estimates by 2.9%. Domino's traded up 1.3% following the results.
Read our full analysis of Domino’s results here and The Cheesecake Factory’s results here.
Investors in the restaurants segment have had steady hands going into earnings, with share prices flat over the last month. Yum! Brands is down 5% during the same time and is heading into earnings with an average analyst price target of $174.33 (compared to the current share price of $150.39).
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