Exploring Analyst Estimates for Yum China (YUMC) Q4 Earnings, Beyond Revenue and EPS

Zacks
04 Feb

Wall Street analysts forecast that Yum China Holdings (YUMC) will report quarterly earnings of $0.30 per share in its upcoming release, pointing to a year-over-year increase of 20%. It is anticipated that revenues will amount to $2.67 billion, exhibiting an increase of 7% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has been revised 3.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Bearing this in mind, let's now explore the average estimates of specific Yum China metrics that are commonly monitored and projected by Wall Street analysts.

The combined assessment of analysts suggests that 'Revenues- Other revenues' will likely reach $39.76 million. The estimate indicates a year-over-year change of -0.6%.

It is projected by analysts that the 'Revenues- Company sales' will reach $2.49 billion. The estimate indicates a change of +6.1% from the prior-year quarter.

Analysts predict that the 'Revenues- Revenues from transactions with franchisees' will reach $104.22 million. The estimate points to a change of +15.8% from the year-ago quarter.

Analysts' assessment points toward 'Revenues- Franchise fees and income' reaching $24.57 million. The estimate indicates a year-over-year change of +22.9%.

Analysts expect 'Revenues- Pizza Hut' to come in at $525.27 million. The estimate indicates a change of +5.9% from the prior-year quarter.

The average prediction of analysts places 'No of Restaurants - Total' at 16,359. Compared to the current estimate, the company reported 14,644 in the same quarter of the previous year.

The consensus estimate for 'Same-store sales, excluding F/X - KFC' stands at -0.3%. Compared to the present estimate, the company reported 3% in the same quarter last year.

Based on the collective assessment of analysts, 'Same-store sales, excluding F/X - Pizza Hut' should arrive at -1.8%. The estimate compares to the year-ago value of 6%.

The consensus among analysts is that 'Same-store sales, excluding F/X - Total' will reach -0.6%. The estimate compares to the year-ago value of 4%.

Analysts forecast 'No of Restaurants - Pizza Hut' to reach 3,724. The estimate compares to the year-ago value of 3,312.

The collective assessment of analysts points to an estimated 'No of Restaurants - Others' of 990. The estimate compares to the year-ago value of 1,036.

According to the collective judgment of analysts, 'No of Restaurants - KFC' should come in at 11,645. The estimate is in contrast to the year-ago figure of 10,296.

View all Key Company Metrics for Yum China here>>>

Over the past month, Yum China shares have recorded returns of +0.1% versus the Zacks S&P 500 composite's +1% change. Based on its Zacks Rank #3 (Hold), YUMC will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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