Yum! Brands (YUM) is set to report its first-quarter earnings before the market opens on May 1. Its April 24 stock price of $103.34 was 9.3% higher than when the company announced its fourth-quarter earnings on February 7, 34.1% above its 52-week low of $77.09, and 0.8% below its 52-week high of $104.19.
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In the fourth quarter, Yum! Brands’ adjusted EPS of $0.40 and revenue of $1.56 billion fell short of analysts’ estimates of $0.95 of $1.59 billion, respectively. However, the company’s overall SSSG (same-store sales growth) of 3.0% beat analysts’ expectation of 2.5%. KFC’s and Taco Bell’s SSSG of 3.0% and 6.0%, respectively, beat analysts’ expectations of 2.8% and 4.5%. Pizza Hut’s SSSG was flat and better than analysts’ forecast decrease of 0.2%, boosting Yum! stock.
Performance this year
After rising 12.6% last year, Yum! Brands has continued its upward momentum. This year, the stock has returned 12.4%, while peers Domino’s Pizza (DPZ) and Papa John’s (PZZA) have risen 14.3% and 26.9%, respectively. Meanwhile, the Consumer Discretionary Select Sector SPDR ETF (XLY) has returned 21.6%.
In the first quarter, analysts expect Yum! Brands’ (YUM) adjusted EPS to fall 10% YoY (year-over-year) from $0.90 to $0.81 due to lower revenue and a higher effective tax rate and interest expenses.
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