YUM! Brands (YUM) Gears Up for Q4 Earnings: What's in Store?

Core Viewpoint - Yum! Brands, Inc. is set to report its fourth-quarter 2023 results on February 7, with expectations of earnings per share at $1.39, reflecting a 6.1% increase year-over-year, and revenues projected at $2.12 billion, indicating a 4.8% growth from the previous year [1][2]. Group 1: Q4 Estimates - The Zacks Consensus Estimate for earnings per share is $1.39, which is a 6.1% increase from the prior-year quarter [2]. - Revenue estimates are set at $2.12 billion, suggesting a growth of 4.8% from $2.02 billion in the prior-year quarter [2]. Group 2: Factors Influencing Performance - Yum! Brands is expected to benefit from strong same-store sales growth, unit expansion, and robust performance from KFC, with same-store sales anticipated to grow by 1.8% [3]. - Revenue projections for KFC, Pizza Hut, Taco Bell, and Habit Burger are expected to increase by 9.8%, 2.3%, 0.6%, and 10.3%, respectively, compared to the previous year [3]. Group 3: Cost Pressures - High inflation levels are likely to impact margins negatively, with increased costs in employee wages, benefits, insurance, rent, and energy expected to exert pressure on margins [4]. - Total costs and expenses are predicted to rise by 3.4% from the previous year [4]. Group 4: Earnings Prediction Model - The current model does not conclusively predict an earnings beat for Yum! Brands, with an Earnings ESP of -1.21% and a Zacks Rank of 3 (Hold) [5].