YUM! Brands' third-quarter results may showcase growth fueled by global expansion, digital strength and new menu innovations across its leading brands.
Evaluate the expected performance of Yum (YUM) for the quarter ended September 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
Yum! Brands heads into Q3 FY25 earnings with expectations for steady growth, trading around $140, and reflecting modest near-term growth. Key watch points include Taco Bell and Pizza Hut momentum, KFC international expansion, digital efficiency gains from 'Byte by Yum!', and margin resilience. YUM's valuation is in line with peers, with upside potential hinging on digital execution or international outperformance, but risks include margin pressure and global headwinds.
Yum (YUM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Like many restaurant stocks, shares of Yum! Brands haven't been the best performers recently, returning around 6% since my last piece in November. Same-store sales growth hasn't been too bad, driven by the continued strength of Taco Bell at home and KFC abroad. These shares continue to trade on a circa mid-20s multiple of consensus EPS. Given Yum's growth prospects and asset-light business model, today's buyer can still do OK from that.
Yum! Brands, Inc. enjoys sustained revenue growth, driven by the strong performance of KFC and Taco Bell, but inflation squeezes margins. Its strategic concentration on franchising, robust operating cash flow, and prudent debt management promise sustainability and dividend payment capacity. However, potential overpricing still holds me back from re-entering.
The headline numbers for Yum (YUM) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
It reported adjusted earnings per share of $1.44, missing Wall Street estimates of $1.46, and revenue of $1.93 billion, below projections of $1.94 billion.
Yum! Brands, Inc. (NYSE:YUM ) Q2 2025 Earnings Conference Call August 5, 2025 8:15 AM ET Company Participants Christopher Lee Turner - Chief Financial & Franchise Officer David W. Gibbs - CEO & Director Matthew Robert Morris - Head of Investor Relations Conference Call Participants Brian James Harbour - Morgan Stanley, Research Division Brian John Bittner - Oppenheimer & Co. Inc., Research Division David E.
YUM misses second-quarter earnings estimates but beats on revenues as Taco Bell and KFC drove global system sales growth.
Shares of Yum!
Yum! Brands Inc (NYSE:YUM) reported sales and profits below expectations for the second quarter as it saw declines in US same store sales at Pizza Hut and KFC, sending its shares lower on Tuesday.