Fast-food company Yum China (NYSE: YUMC) will be announcing earnings results this Tuesday before the bell. Here’s what to look for.
Yum China missed analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $2.79 billion, up 4% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ same-store sales estimates but a slight miss of analysts’ revenue estimates.
Is Yum China a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Yum China’s revenue to grow 4.1% year on year to $3.20 billion, slowing from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.
Analysts covering the company have generally 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 five 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. Restaurant Brands delivered year-on-year revenue growth of 6.9%, beating analysts’ expectations by 2.4%, and Domino's reported revenues up 6.2%, topping estimates by 0.9%. Restaurant Brands’s stock price was unchanged after the resultswhile Domino's was up 2.2%.
Read our full analysis of Restaurant Brands’s results here and Domino’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the traditional fast food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.1% on average over the last month. Yum China’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $58.16 (compared to the current share price of $43.57).
P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
