Yum! Brands 2022 Investor Day Review

Yum Brands, listed on the NYSE:YUM, is the parent company of well-known fast-food chains like KFC, Taco Bell, and Pizza Hut. The company is set to release its quarterly earnings on April 30, 2025. Analysts expect earnings per share (EPS) to be $1.29, with projected revenue of approximately $1.85 billion for the quarter.

The anticipated EPS of $1.29 represents a 12.2% increase from the same period last year, as highlighted by analysts. This growth is driven by a projected revenue of $1.85 billion, marking a 15% year-over-year increase. Over the past month, the consensus EPS estimate has been slightly revised upwards by 0.1%, indicating a positive outlook from analysts.

Yum Brands' financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 28.04, showing the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is 5.45, reflecting the value placed on each dollar of sales. The enterprise value to sales ratio stands at 7.00, indicating how the market values the company's total sales.

The company's financial health is further illustrated by its enterprise value to operating cash flow ratio of 31.18, which shows the relationship between enterprise value and operating cash flow. Yum Brands has an earnings yield of 3.57%, indicating the percentage of each dollar invested that was earned by the company. The debt-to-equity ratio is -1.61, highlighting the company's capital structure.

Yum Brands' current ratio of 1.47 suggests its ability to cover short-term liabilities with short-term assets. The upcoming earnings report is crucial, as it could significantly impact YUM's stock price. If results exceed expectations, the stock may rise, while a miss could lead to a decline. The sustainability of price changes will depend on management's discussion during the earnings call.

• Oppenheimer sets a price target of $185 for Yum! Brands, indicating a potential upside of 25.59%.
• Quarterly earnings of $1.29 per share are expected, with revenues forecasted at $1.84 billion.
• The consensus EPS estimate for Yum! Brands has been revised upwards by 0.1% over the past 30 days.

Yum! Brands (NYSE:YUM), the parent company of well-known fast-food chains like KFC, Taco Bell, and Pizza Hut, is a major player in the global restaurant industry. On April 28, 2025, Brian Bittner from Oppenheimer set a price target of $185 for YUM, suggesting a potential upside of 25.59% from its current trading price of $147.30. This optimistic outlook reflects confidence in the company's growth prospects.

Yum! Brands is expected to report quarterly earnings of $1.29 per share for the quarter ending March 2025, a 12.2% increase from the previous year. Analysts also forecast revenues of $1.84 billion, representing a 15.1% year-over-year growth. These figures indicate strong performance, which could support the stock's upward trajectory towards the $185 target.

The consensus earnings per share (EPS) estimate for Yum! Brands has been slightly revised upwards by 0.1% over the past 30 days. Such revisions often influence investor sentiment and can impact the stock's short-term price performance. A positive earnings surprise could further boost the stock price, while a miss might lead to a decline.

Yum! Brands' earnings report is scheduled for release on April 30, 2025. The market holds a positive consensus outlook for the company's earnings, but the actual impact on the stock price will depend on how the reported figures compare to expectations. Management's discussion of business conditions during the earnings call will also play a crucial role in shaping future earnings expectations.

Currently, YUM is trading at $147.30, with a slight decrease of 0.19% or $0.28. The stock has traded between $146.32 and $148.80 today, with a 52-week high of $163.30 and a low of $122.13. Yum! Brands' market capitalization is approximately $41 billion, and today's trading volume on the NYSE is 1,310,381 shares.

• Yum! Brands Inc. (NYSE:YUM) is a significant player in the fast-food industry, competing with giants like McDonald's and Burger King.
• Loop Capital Markets has maintained a "Hold" rating for YUM, with a current stock price of $127.31.
• YUM is nearing a potential Golden Cross, indicating a possible upward trend in its stock performance.

Yum! Brands Inc. (NYSE:YUM) is a global leader in the fast-food industry, owning popular chains like KFC, Pizza Hut, and Taco Bell. These brands are known for their wide range of menu offerings and global presence. Yum! Brands competes with other fast-food giants like McDonald's and Burger King, striving to maintain its market share and customer loyalty.

On January 8, 2025, Loop Capital Markets maintained its "Hold" rating for YUM, with the stock priced at $127.31. A "Hold" rating suggests that analysts believe the stock will perform in line with the market or its peers. This rating indicates that investors might not expect significant gains or losses in the near term.

YUM is nearing a potential Golden Cross, a bullish technical indicator. A Golden Cross occurs when a short-term moving average crosses above a long-term moving average, signaling a potential upward trend. This could suggest a positive turnaround in YUM's stock performance, attracting investor interest.

Currently, YUM's stock price is $127.66, a slight decrease of $0.89 or -0.69%. The stock has fluctuated between $127.01 and $128.23 today. Over the past year, YUM has seen a high of $143.20 and a low of $124.76, indicating some volatility in its stock price.

YUM's market capitalization is approximately $35.63 billion, reflecting its significant presence in the fast-food industry. With a trading volume of 397,096 shares on the NYSE today, investor activity remains steady. This level of trading volume suggests continued interest in YUM's stock, despite recent price fluctuations.

Wells Fargo analysts changed their rating for Yum! Brands (NYSE:YUM) from Overweight to Equal Weight, adjusting the price target from $150.00 down to $135.00.

The analysts explained that the rationale for the downgrade is based on the assessment that the optimistic outlook for 2023, which was based on accelerating comparable sales, unit growth, and improving margins, has mostly materialized. Looking ahead to 2024, they anticipate challenges due to a comparatively high benchmark set by the previous year's performance, recent indicators of slowing momentum, and a less promising set of catalysts for 2024.

Despite acknowledging Yum! Brands' strong long-term growth drivers, the analysts foresee a potential slowdown in customer traffic, a moderation in pricing gains, and less likelihood of outperforming the company's 8% profit algorithm in 2024. Their earnings per share estimate for 2024 is slightly below the consensus, partly due to Yum! Brands' decision to halt share buybacks as it focuses on debt repayment.

Wells Fargo analysts changed their rating for Yum! Brands (NYSE:YUM) from Overweight to Equal Weight, adjusting the price target from $150.00 down to $135.00.

The analysts explained that the rationale for the downgrade is based on the assessment that the optimistic outlook for 2023, which was based on accelerating comparable sales, unit growth, and improving margins, has mostly materialized. Looking ahead to 2024, they anticipate challenges due to a comparatively high benchmark set by the previous year's performance, recent indicators of slowing momentum, and a less promising set of catalysts for 2024.

Despite acknowledging Yum! Brands' strong long-term growth drivers, the analysts foresee a potential slowdown in customer traffic, a moderation in pricing gains, and less likelihood of outperforming the company's 8% profit algorithm in 2024. Their earnings per share estimate for 2024 is slightly below the consensus, partly due to Yum! Brands' decision to halt share buybacks as it focuses on debt repayment.

Yum! Brands (NYSE:YUM), renowned for its ownership of KFC and Taco Bell, reported Q2 earnings of $1.41 per share, outperforming the analyst consensus estimate of $1.24.

One of the highlights of the company's report was the impressive same-store sales growth of 9%. KFC, in particular, achieved remarkable same-store sales growth of 13%, standing out as the highest among YUM's brands. This growth was notably driven by KFC's stores in China, where same-store sales soared by 32% year-over-year.

On the other hand, Pizza Hut's same-store sales growth of 4% was deemed disappointing by investors, despite the notable 25% increase in China. Taco Bell also experienced a 4% increase in same-store sales.

Yum! Brands (NYSE:YUM) plunged nearly 4% yesterday after the company reported its Q1 earnings results, with EPS of $1.06 coming in worse than the Street estimate of $1.13. Revenue was $1.65 billion, compared to the Street estimate of $1.62 billion.

The three largest brands delivered high-single-digit comp growth, with momentum carrying forward into Q2. However, higher-than-anticipated expenses weighed on margins and drove the EPS miss.

According to the analysts at RBC Capital, the headwinds are temporary and they expect the company to continue to post strong (over 20%) earnings growth for the balance of the year.