ZACKSยท2025-11-04 13:06Group 1: Earnings Performance - Yum China reported quarterly earnings of $0.76 per share, matching the Zacks Consensus Estimate, compared to $0.77 per share a year ago [1] - The company posted revenues of $3.21 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 0.64%, and up from $3.07 billion year-over-year [2] - Over the last four quarters, Yum China has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2][1] Group 2: Stock Performance and Outlook - Yum China shares have declined approximately 8.7% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $2.7 billion, and for the current fiscal year, it is $2.51 on revenues of $11.65 billion [7] Group 3: Industry Context - The Retail - Restaurants industry, to which Yum China belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Yum China's stock performance [5]