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Yum! Brands (YUM) Reports Q3: Everything You Need To Know Ahead Of Earnings

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Fast-food company Yum! Brands (NYSE:YUM) will be reporting results tomorrow before the bell. Here’s what you need to know.

Yum! Brands missed analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.76 billion, up 4.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA 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 10.9% year on year to $1.89 billion, improving from the 4.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.41 per share.

Yum! Brands Total Revenue

Analysts covering the company have generally 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 Q3 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, meeting analysts’ expectations, and McDonald's reported revenues up 2.7%, in line with consensus estimates. El Pollo Loco traded down 2.1% following the results while McDonald's was also down 1.8%.

Read our full analysis of El Pollo Loco’s results here and McDonald’s results here.

There has been positive sentiment among investors in the traditional fast food segment, with share prices up 5.1% on average over the last month. Yum! Brands is down 2.6% during the same time and is heading into earnings with an average analyst price target of $145.81 (compared to the current share price of $132.38).

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