Yum Brands on Thursday reported quarterly earnings and revenue that included strong sales for KFC's international restaurants and Taco Bell. The company's same-store sales rose 1% in the quarter.
Get a deeper insight into the potential performance of Yum (YUM) for the quarter ended December 2024 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
YUM's fourth-quarter 2024 results are likely to gain from strong same-store sales growth, expansion of units and a stellar performance from KFC.
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.
Pizza Hut's largest UK franchisee, Heart With Smart (HWS), is close to securing a rescue deal that would safeguard most of its 140 outlets and 3,000 jobs, according to Sky News. Directional Capital, an investment firm managing Pizza Hut operations in Denmark and Sweden, is in advanced talks to acquire HWS.
Loop Capital analyst Alton Stump keeps a Hold rating and $140 price target on Yum! Brands while noting that the firm's Taco Bell U.S. franchisee checks indicate that same-store sales growth came in well ahead of expectations. The firm's latest conversions with U.S. Taco Bell franchisees suggest same-store sales were up 7%-8% in Q4, including a modest acceleration from about 7% during the first half of Q4 to about 8% during the back half of the quarter, which implies comps meaningfully exceeded Loops's prior estimate for 5% growth in Q4 and consensus at up 4%, the analyst tells investors in a research note.
Yum! Brands Inc. YUM, the parent company of KFC, Pizza Hut and Taco Bell, is nearing a potential Golden Cross , a bullish technical indicator that could signal a turnaround for the stock.
Yum! Brands, Inc. shows resilience with strong performance from KFC and Taco Bell, despite Pizza Hut's drag on revenues. YUM's solid business model, high liquidity, and low operating costs from franchising support its stability and growth potential. The stock is undervalued with a P/E of 24.76 and a DCF target price of $172.76, offering significant upside potential.
We believe that Chipotle Mexican Grill stock (NYSE: CMG) is a better pick than its industry peer – Yum! Brands (NYSE: YUM).
Yum (YUM) reported earnings 30 days ago. What's next for the stock?
Weakening consumer health and Middle East-related blowback is leading to a relatively soft year for Yum! Brands. System sales were up just 1% over the first nine months, well below the 7% growth that management targets over the long run. Taco Bell and KFC remain in good health. Store closures will hit unit growth this year, but underlying demand from franchisees remains strong.
In early, limited pilots of artificial intelligence (AI)-powered marketing campaigns, quick-service restaurant (QSR) company Yum Brands reportedly is seeing double-digit increases in customer engagement compared to traditional digital marketing campaigns.