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.
Yum Brands has quietly become an incubator for future restaurant industry leaders. CEOs like Brian Niccol, Kevin Hochman and Julie Felss Masino spent years at Yum before leaving to lead other restaurant companies.
Yum Brands (YUM) came out with quarterly earnings of $1.44 per share, missing the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.35 per share a year ago.
Yum Brands on Tuesday reported quarterly earnings and revenue that missed analysts' expectations. Pizza Hut and KFC reported U.S. same-store sales declines.
Yum! Brands (NYSE: YUM) is the parent company of Taco Bell, KFC, Pizza Hut, and Habit Burger & Grill. It is anticipated to announce its second-quarter earnings on Tuesday, August 5, 2025, with analysts estimating earnings of $1.46 per share on $1.94 billion in revenue.