Stock Story -
Fast-food company Yum China (NYSE:YUMC) will be reporting results tomorrow after market close. Here's what investors should know.
Yum China missed analysts' revenue expectations by 3.2% last quarter, reporting revenues of $2.96 billion, up 1.4% year on year. It was an ok quarter for the company, with an impressive beat of analysts' gross margin estimates.
Is Yum China a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Yum China's revenue to grow 4% year on year to $2.76 billion, slowing from the 24.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yum China has missed Wall Street's revenue estimates six times over the last two years.
Looking at Yum China's peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, beating analysts' expectations by 1.5%, and Wendy's reported revenues up 1.6%, falling short of estimates by 1%. El Pollo Loco's stock price was unchanged after the results, and Wendy's price followed a similar reaction.
Read the full analysis of El Pollo Loco's and Wendy's results on StockStory.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices flat over the last month. Yum China is down 2.2% during the same time and is heading into earnings with an average analyst price target of $50.6 (compared to the current share price of $29.79).
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