Fast-food company Yum! Brands (NYSE:YUM) will be reporting results tomorrow before market hours. Here's what you need to know.
Yum! Brands missed analysts' revenue expectations by 6.6% last quarter, reporting revenues of $1.60 billion, down 2.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' earnings estimates.
Is Yum! Brands a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Yum! Brands's revenue to grow 6.9% year on year to $1.80 billion, improving from the 3.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.33 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yum! Brands has missed Wall Street's revenue estimates five times over the last two years.
Looking at Yum! Brands's peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, beating analysts' expectations by 1.5%, and Wendy's reported revenues up 1.6%, falling short of estimates by 1%. El Pollo Loco's stock price was unchanged after the results, and Wendy's price followed a similar reaction.
Read our full analysis of El Pollo Loco's results here and Wendy's results here.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices flat over the last month. Yum! Brands is up 5.1% during the same time and is heading into earnings with an average analyst price target of $144.4 (compared to the current share price of $134.5).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.