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Based in Louisville, Kentucky, Yum! Brands, Inc. (YUM) is a leading global player in the quick-service restaurant industry, specializing in diverse food offerings across its various segments. With a market cap of $35.8 billion, the fast-food company is expected to unveil its fiscal Q2 earnings results before the market opens on Tuesday, Aug. 6.
Prior to the event, analysts anticipate YUM to report a profit of $1.32 per share, down 6.4% from $1.41 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. The company reported an EPS of $1.15 in the most recent quarter, missing the consensus EPS estimate by 4.2%.
For fiscal 2024, analysts expect YUM to report EPS of $5.65, up 9.3% from $5.17 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 12% year over year to $6.33.
In 2024, YUM's shares have decreased 2.7%, lagging behind the S&P 500 Index's ($SPX) 18.2% gain and the S&P 500 Cons Disc Sector SPDR's (XLY) 2.5% return on a YTD basis.
Shares of Yum! Brands fell 4.2% on May 1 due to a 3% drop in global same-store sales, driven by weaker performance at KFC and Pizza Hut amid inflation-driven consumer demand for value-oriented meals. Plus, the company's Q1 adjusted EPS of $1.15 and total revenue of $1.60 billion both missed analysts' expectations, intensifying investor concerns.
Analysts' consensus rating on Yum stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 25 analysts covering the stock, opinions include eight "Strong Buys," one "Moderate Buy," and 16 "Holds."
The average analyst price target for YUM is $144, suggesting a potential upside of 13.3% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
