Yum (YUM) Q2 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

Core Viewpoint - Yum Brands (YUM) is expected to report quarterly earnings of $1.45 per share, a 7.4% increase year-over-year, with revenues projected at $1.93 billion, reflecting a 9.5% year-over-year growth [1]. Earnings Projections - The consensus EPS estimate for the quarter has been revised upward by 0.2% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Revenues- Company sales' to reach $680.67 million, indicating a year-over-year increase of 19% [5]. - 'Revenues- Franchise and property revenues' are forecasted at $826.92 million, suggesting a 4.8% year-over-year change [5]. - 'Revenues- Franchise contributions for advertising and other services' are expected to be $426.07 million, reflecting a 6% increase from the previous year [5]. - The KFC Division's franchise contributions for advertising and other services are projected at $159.68 million, a 7.2% year-over-year increase [6]. Same-Store Sales and Restaurant Metrics - System same-store sales for the Taco Bell Division are expected to show a year-over-year change of 5.2%, slightly up from 5.0% last year [6]. - The number of restaurants in the KFC Division (Franchise & License) is estimated to reach 31,934, compared to 30,255 a year ago [7]. - Total restaurants in the Taco Bell Division are projected at 8,803, up from 8,565 in the same quarter last year [7]. - The number of company-owned Taco Bell restaurants is expected to be 510, an increase from 488 last year [8]. - The total number of restaurants in the Pizza Hut Division is estimated at 19,921, compared to 19,864 a year ago [9]. - The total number of restaurants across all divisions is projected to reach 61,524, up from 59,498 last year [10]. Stock Performance - Over the past month, Yum shares have returned -3.9%, while the Zacks S&P 500 composite has increased by 2.3% [11]. - Yum currently holds a Zacks Rank 2 (Buy), indicating potential outperformance in the near future [11].