Yum China Holdings (YUMC) Q1 Earnings and Revenues Lag Estimates

Core Insights - Yum China Holdings (YUMC) reported quarterly earnings of $0.77 per share, slightly missing the Zacks Consensus Estimate of $0.78 per share, but showing an increase from $0.71 per share a year ago, resulting in an earnings surprise of -1.28% [1] - The company posted revenues of $2.98 billion for the quarter ended March 2025, which was 4.19% below the Zacks Consensus Estimate, and a slight increase from $2.96 billion year-over-year [2] - Yum China has surpassed consensus EPS estimates three times over the last four quarters, but has not beaten revenue estimates in the same period [2] Company Performance - Since the beginning of the year, Yum China shares have declined by approximately 3.1%, while the S&P 500 has decreased by 5.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $2.84 billion, and for the current fiscal year, it is $2.51 on revenues of $11.86 billion [7] Industry Outlook - The Retail - Restaurants industry, to which Yum China belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Yum China's stock performance [5][6]