Fast-food company Yum! Brands (NYSE:YUM) will be reporting earnings tomorrow before market open. Here's what investors should know.
Last quarter Yum! Brands reported revenues of $1.71 billion, up 4.1% year on year, missing analyst expectations by 3.6%. It was a mixed quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' revenue estimates.
Is Yum! Brands buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Yum! Brands's revenue to grow 4.3% year on year to $2.11 billion, slowing down from the 6.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.40 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing eleven downward revisions over the last thirty days.The company missed Wall St's revenue estimates four times over the last two years.
Looking at Yum! Brands's peers in the restaurants segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. McDonald's (NYSE:MCD) delivered top-line growth of 8.1% year on year, missing analyst estimates by 0.7% and Starbucks (NASDAQ:SBUX) reported revenues up 8.2% year on year, missing analyst estimates by 2.1%. Starbucks was up 2.3%, and McDonald's was down 1.7%.
Read the full analysis of McDonald's's and Starbucks's results on StockStory.
Investors in the restaurants segment have had steady hands going into the earnings, with the stocks down on average 0.8% over the last month. Yum! Brands is down 1.5% during the same time, and is heading into the earnings with analyst price target of $141.6, compared to share price of $126.7.
The author has no position in any of the stocks mentioned.
