Will Yum! Brands’ Earnings Surprise Again?

Yum! Brands' Upcoming Earnings – What To Expect (Part 2 of 7)

(Continued from Part 1)

Yum! Brands’ earnings

Yum! Brands (YUM) is expected to release its 4Q14 earnings on February 4. Year-to-date, or YTD, the stock is up 3.2%. The S&P 500 index declined 2.7% and the volatility (VIX) increased to $20.40 levels as of January 29. Chipotle Mexican Grill (CMG) increased 7.7% since its previous earnings release.

What are the earnings projections?

Wall Street analysts’ consensus for Yum! Brands earnings per share, or EPS, is estimated to come in at $0.66 for 4Q14. Yum! Brands had an earnings surprise of 5% in the previous quarter. A company is said to have reported an earnings surprise when the actual EPS is greater that the estimated EPS.

Wendy’s (WEN) is expected to release its earnings on Feb 3. Panera Bread (PNRA) is expected to announce its earnings on February 11. McDonald’s (MCD) announced its earnings on January 23. It reported an EPS of $1.13. We’ll cover the earnings for these companies. So, mark your calendars and visit our website after the earnings are released!

To learn more about McDonald’s earnings overview, read Are Investors Lovin’ It? McDonald’s 4Q14 Earnings.

A few of the companies mentioned above are also held by the Consumer Discretionary Select Sector SPDR ETF (XLY). To learn more about the US restaurant industry, read An in-depth overview of the US restaurant industry.

Company overview

You may not be familiar with Yum! Brands, but you have probably visited one of the restaurants under its umbrella—like Taco Bell, KFC (Kentucky Fried Chicken), or Pizza Hut. It also includes two lesser-known brands—Little Sheep and East Dawning in China. Yum! Brands operates more than 41,000 restaurants in over 125 countries.

According to IBISWorld, in 2014, Yum! Brands had the second largest market share of 11% in the US fast food industry. It was after McDonald’s. McDonald’s had the largest share of 17%. It had 35,000 restaurants worldwide.

In this series, we’ll cover the earnings expectations for Yum! Brands’ upcoming earnings release.

Continue to Part 3

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