Fast food company Yum China (NYSE:YUMC) reports earnings results tomorrow afternoon. This is what you can expect.
Yum China exceeded analyst revenue expectations by 7% last quarter, reporting revenue of $2.49 billion, up 19.4% year over year. It was a stellar quarter for the company, with an impressive return on analysts’ revenue expectations.
Is Yum China a profitable buy or sell? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts expect Yum China’s revenue to grow 4.3% year-over-year to $3.04 billion, a slowdown from the 9.3% increase recorded in the same quarter last year. Adjusted earnings are expected to be $0.65 per share.
The majority of analysts covering the company have reaffirmed their estimates over the last thirty days, suggesting they expect the company to continue its trajectory on the earnings front. Yum China has missed Wall Street revenue estimates five times in the past two years.
Looking at Yum China’s peers in the restaurant segment, some have already reported their first quarter results, which gives us an idea of what to expect. Darden (NYSE:) delivered year-over-year revenue growth of 6.8%, beating analyst expectations by 1.7%, and Kura Sushi reported a 30.4% revenue increase, beating Wall Street consensus estimates were exceeded by 1.1%. Darden fell 4.9% after the results, while Kura Sushi rose 2.7%.
Read the full analysis of Darden and Kura Sushi’s results on StockStory.
Valuation multiples for many growth stocks have not yet returned to their early 2021 highs, but the market was bullish in late 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility. While some restaurant stocks have done slightly better, they haven’t been spared, with the stock price down 4.9% over the past month. Yum China is down 0.7% in the same period and is heading for gains with an average price target of $56.1 (compared to the share price of $39.91).
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