Fast-food company Yum China (NYSE: YUMC) will be announcing earnings results tomorrow before the bell. Here’s what to expect.
Yum China missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.60 billion, up 4.1% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and same-store sales in line with analysts’ estimates.
Is Yum China a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Yum China’s revenue to grow 4.7% year on year to $3.10 billion, improving from the 1.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yum China has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Yum China’s peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 2.5%, missing analysts’ expectations by 1.2%, and Darden reported revenues up 6.2%, falling short of estimates by 1.7%. Darden traded up 6.2% following the results.
Read our full analysis of Domino’s results here and Darden’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the restaurants stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. Yum China is down 10.2% during the same time and is heading into earnings with an average analyst price target of $60.26 (compared to the current share price of $46.73).
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