Yum China (YUMC) Q4 Earnings Report Preview: What To Look For

Kayode Omotosho /
2024/02/05 2:01 am EST

Fast-food company Yum China (NYSE:YUMC) will be reporting results tomorrow after the bell. Here's what investors should know.

Last quarter Yum China reported revenues of $2.91 billion, up 8.5% year on year, missing analyst expectations by 5.7%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.

Is Yum China buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Yum China's revenue to grow 11.6% year on year to $2.33 billion, improving on the 8.9% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.

Yum China Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates six times over the last two years.

Looking at Yum China's peers in the restaurants segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Starbucks delivered top-line growth of 8.2% year on year, missing analyst estimates by 2.1% and Brinker International reported revenues up 5.4% year on year, missing analyst estimates by 0.4%. Starbucks traded up 2.3% on the results, and Brinker International was flat on the results.

Read our full analysis of Starbucks's results here and Brinker International's results here.

Investors in the restaurants segment have had steady hands going into the earnings, with the stocks up on average 1.7% over the last month. Yum China is down 11.5% during the same time, and is heading into the earnings with analyst price target of $59, compared to share price of $35.8.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

The author has no position in any of the stocks mentioned.