Yum Brands (YUM) Beats Q1 Earnings Estimates

Financial Performance - Yum Brands reported quarterly earnings of $1.30 per share, exceeding the Zacks Consensus Estimate of $1.29 per share, and up from $1.15 per share a year ago, representing an earnings surprise of 0.78% [1] - The company posted revenues of $1.79 billion for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 2.76%, compared to $1.6 billion in the same quarter last year [2] - Over the last four quarters, Yum has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - Yum shares have increased by approximately 10.1% since the beginning of the year, contrasting with a decline of 5.5% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.45 on revenues of $1.96 billion, and for the current fiscal year, it is $5.99 on revenues of $8.2 billion [7] Industry Context - The Retail - Restaurants industry, to which Yum 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's stock performance [5][6]