Yum China Holdings, Inc. YUMC is scheduled to report fourth-quarter 2024 outcomes on Feb. 6, earlier than the opening bell.
Discover the newest EPS estimates and surprises on Zacks Earnings Calendar.
Within the final reported quarter, the corporate’s adjusted earnings topped the Zacks Consensus Estimate by 13.2% and rose 17% 12 months over 12 months. Whole revenues marginally missed the consensus mark by 0.3% however grew 5.4% from the year-ago quarter.
YUMC’s earnings surpassed expectations in every of the trailing 4 quarters, the typical shock being 32.5%.
Development in YUMC’s Estimate Revision
The Zacks Consensus Estimate for adjusted earnings per share (EPS) has trended all the way down to 30 cents from 31 cents over the previous 30 days. Nonetheless, the estimated determine signifies 20% progress from the prior-year interval.
Yum China Worth and EPS Shock
Yum China price-eps-surprise | Yum China Quote
The consensus estimate for complete revenues is pegged at $2.67 billion, indicating a 7% improve from the year-ago interval.
Elements Prone to Form Yum China’s This fall Outcomes
Yum China’s prime line is predicted to have elevated 12 months over 12 months because of internet new unit contributions driving the sturdy complete system gross sales progress. This, alongside the corporate’s give attention to value-for-money and progressive new merchandise, efficient execution of the RGM 2.0 technique, environment friendly promoting and advertising efforts and breakthrough enterprise fashions, is prone to have added to the uptrend. The enterprise fashions embody the side-by-side KCOFFEE Cafes and Pizza Hut WOW, which have proven nice potential upon their launches.
Our mannequin expects revenues from KFC (contributed 86.1% to third-quarter 2024 complete revenues) and Pizza Hut (contributed 20% to third-quarter complete revenues) to develop 12 months over 12 months by 7.8% to $2.02 billion and 5.9% to $525.4 million, respectively.
The tailwinds talked about above are anticipated to have been incremental for progress in visitor site visitors, reflecting the resilience of the a number of initiatives undertaken to enhance the profitability of the corporate.
Furthermore, the underside line of YUMC is predicted to have improved 12 months over 12 months on the again of favorable commodity costs and financial savings from spending higher and shopping for higher initiatives underneath Undertaking Crimson Eye. Though wage will increase for the frontline employees and the affect of gross sales deleveraging are prone to have restricted the prospects to some extent, strategic initiatives undertaken to enhance operational effectivity and stabilize restaurant margin are anticipated to have boosted Yum China’s prospects.
We anticipate the adjusted working revenue margin to extend 130 foundation factors (bps) 12 months over 12 months to six%, with adjusted working revenue growing 37.7% to $159.7 million. Adjusted EBITDA (earnings earlier than curiosity, tax, depreciation and amortization) and adjusted EBITDA margin are additionally anticipated to develop 12 months over 12 months by 16.6% to $283.4 million and 90 bps to 10.6%.
What Our Mannequin Unveils for YUMC
Our confirmed mannequin doesn’t conclusively predict an earnings beat for Yum China this time round. That’s as a result of a inventory must have each a constructive Earnings ESP and a Zacks Rank #1 (Sturdy Purchase), 2 (Purchase) or 3 (Maintain) for this to occur. This isn’t the case right here, as elaborated under.
Earnings ESP: YUMC has an Earnings ESP of -4.13%. You may uncover the very best shares earlier than they’re reported with our Earnings ESP Filter.
Zacks Rank: The corporate at the moment carries a Zacks Rank of three. You may see the complete list of today’s Zacks #1 Rank stocks here.
Shares Poised to Beat on Earnings
Listed here are some shares from the Zacks Retail-Wholesale sector, which in keeping with our mannequin, have the fitting mixture of components to beat on earnings this reporting cycle.
Amazon.com, Inc. AMZN at the moment has an Earnings ESP of +4.78% and a Zacks Rank of two.
AMZN’s earnings for the fourth quarter of 2024 are anticipated to extend 50.5%. The corporate reported better-than-expected earnings in every of the final 4 quarters, the typical shock being 25.9%.
Chipotle Mexican Grill, Inc. CMG has an Earnings ESP of +1.00% and a Zacks Rank of two.
CMG reported better-than-expected earnings in every of the final 4 quarters, the typical shock being 9.8%. The corporate’s earnings for the fourth quarter of 2024 are anticipated to extend 14.3%.
The Cheesecake Manufacturing unit Included CAKE at the moment has an Earnings ESP of +2.20% and a Zacks Rank of two.
CAKE’s earnings for the fourth quarter of fiscal 2024 are anticipated to extend 13.8%. The corporate reported better-than-expected earnings in every of the final 4 quarters, the typical shock being 14.1%.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report
Yum China (YUMC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
