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

YUMC Cover Image

Fast-food company Yum China (NYSE:YUMC) will be reporting earnings tomorrow morning. Here’s what you need to know.

Yum China missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $2.68 billion, flat year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates.

Is Yum China a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Yum China’s revenue to grow 3.8% year on year to $3.03 billion, slowing from the 8.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.65 per share.

Yum China Total Revenue

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 Q3 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, meeting analysts’ expectations, and McDonald's reported revenues up 2.7%, in line with consensus estimates. El Pollo Loco traded down 2.1% following the results while McDonald's was also down 1.8%.

Read our full analysis of El Pollo Loco’s results here and McDonald’s results here.

There has been positive sentiment among investors in the traditional fast food segment, with share prices up 5.1% on average over the last month. Yum China is down 9.6% during the same time and is heading into earnings with an average analyst price target of $50.43 (compared to the current share price of $45.25).

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