YUM! Brands to Report Q1 Earnings: What's in the Offing?

Core Viewpoint - Yum! Brands, Inc. is set to report its first-quarter 2025 results on April 30, with expectations of strong revenue growth driven by same-store sales and brand performance, particularly from KFC [1][3]. Group 1: Earnings Estimates - The Zacks Consensus Estimate for earnings per share is $1.29, reflecting a 12.2% increase from the prior-year quarter [2]. - Revenue estimates stand at $2.32 billion, indicating a growth of 15.1% from $1.84 billion in the same quarter last year [2]. Group 2: Growth Drivers - Key factors contributing to Yum's anticipated results include higher same-store sales, ongoing expansion in the U.S. and internationally, and continued menu innovation [3]. - The adoption of an AI-enhanced ordering system is expected to improve operational efficiency and customer experience, leading to increased sales [4]. Group 3: Brand Performance - Revenue predictions for KFC, Taco Bell, and Habit Burger are expected to rise by 15%, 10.2%, and 15.8%, respectively, with KFC projected to generate $726.6 million [5]. - Pizza Hut revenues are forecasted to increase by 6.4% to $253.3 million [5]. Group 4: Cost Pressures - An increase in employee wages, benefits, and other operating costs is anticipated to pressure Yum's margins, with total costs and expenses expected to rise by 14.2% year-over-year [6]. Group 5: Earnings Prediction Model - The current model does not predict an earnings beat for Yum! Brands, as it has an Earnings ESP of -0.29% and a Zacks Rank of 3 [7][8].