/Yum%20Brands%20Inc_%20brands%20on%20phone%20by-%20T_Schneider%20via%20Shutterstock.jpg)
With a market cap of $41.1 billion, Yum! Brands, Inc. (YUM) is a global leader in the quick-service restaurant industry, operating through four key segments: KFC, Pizza Hut, Taco Bell, and Habit Burger Grill. The company develops, operates, and franchises restaurants in over 150 countries and territories, with each brand leading in its respective food category.
The Louisville, Kentucky-based company is expected to announce its fiscal Q1 2025 earnings results before the market opens on Wednesday, Apr. 30. Ahead of this event, analysts expect YUM to report an adjusted EPS of $1.29, up 12.2% from $1.15 in the year-ago quarter. It has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions.
For fiscal 2025, analysts expect YUM to report an adjusted EPS of $5.99, up 9.3% from $5.48 in fiscal 2024. In addition, adjusted EPS is projected to grow 11.7% year-over-year to $6.69 in fiscal 2026.
Shares of Yum! Brands have gained 4.1% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 8.2% rise and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 11.4% return over the period.
Shares of Yum! Brands jumped 9.7% on Feb. 6 after the company posted strong Q4 2024 results, including adjusted EPS of $1.61 and revenue of $2.4 billion, exceeding the forecasts. Investors responded positively to the company's 28% year-over-year EPS growth and 16% revenue increase. Standout performances from Taco Bell, with 14% system sales growth and 5% U.S. same-store sales growth, along with robust KFC International expansion, further fueled investor confidence.
Moreover, the company’s digital sales accounted for more than 50% of transactions in 2024, highlighting successful strategies in digital transformation and global expansion.
Analysts' consensus view on Yum! Brands’ stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 27 analysts covering the stock, six recommend "Strong Buy" and 21 indicate “Hold.” As of writing, YUM is trading below the average analyst price target of $156.62.
