Yum China (YUMC) Reports Earnings Tomorrow. What To Expect

Fast-food company Yum China (NYSE:YUMC)
will be reporting earnings tomorrow after market close. Here’s what to expect.

Last quarter Yum China reported revenues of $2.65 billion, up 24.7% year on year, missing analyst expectations by 2.4%. It was a weak quarter for the company, with a miss of analysts’ revenue estimates.

Is Yum China buy or sell heading into the earnings? Find out by reading the original article on StockStory.

This quarter analysts are expecting Yum China’s revenue to grow 15% year on year to $3.09 billion, improving on the 5.13% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.63 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St’s revenue estimates five times over the last two years.

Looking at Yum China’s peers in the restaurants segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Domino’s’s revenues decreased 3.86% year on year, missing analyst estimates by 1.99% and Darden (NYSE:) reported revenues up 11.6% year on year, exceeding estimates by 0.83%. Domino’s traded flat on the results, Darden was down 2.9%.

Read the full analysis of Domino’s’s and Darden’s results on StockStory.

Technology stocks have been hit hard on fears of higher interest rates and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share price declining 3.02% over the last month. Yum China is down 5.11% during the same time, and is heading into the earnings with with analyst price target of $73.3, compared to share price of $52.5.

The author has no position in any of the stocks mentioned.