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YUM! Brands Earnings Preview: Key Financial Insights

  • Analysts expect a 7.4% increase in EPS and a 9.5% rise in revenue for the second quarter.
  • YUM has historically risen 63% of the time following earnings announcements.
  • The company’s price-to-earnings (P/E) ratio stands at approximately 28.88, indicating investor valuation.

YUM! Brands, listed on the NYSE:YUM, is the parent company of well-known fast-food chains like Taco Bell, KFC, Pizza Hut, and Habit Burger & Grill. The company is set to release its second-quarter earnings on August 5, 2025. Analysts expect earnings per share (EPS) of $1.45 and revenue of approximately $1.94 billion. This represents a 7.4% increase in EPS and a 9.5% rise in revenue compared to the previous year.

In the past, YUM has shown a strong tendency to exceed earnings expectations. Historically, the stock has risen 63% of the time following earnings announcements, with a median increase of 1.9% in one day. The highest observed growth reached 10%. In the first quarter, YUM experienced strong earnings growth, particularly driven by Taco Bell and KFC, despite a slight revenue miss.

YUM’s profitability remains solid, with digital sales continuing to expand. The company has been focusing on menu innovations, loyalty campaigns, and new beverage concepts, which have contributed to increased customer traffic and higher average checks. Despite concerns about U.S. demand and weaknesses in Pizza Hut, YUM’s long-term growth objectives remain unchanged.

Financially, YUM has a price-to-earnings (P/E) ratio of approximately 28.88, indicating the price investors are willing to pay for each dollar of earnings. The company’s price-to-sales ratio stands at about 5.28, reflecting the value placed on each dollar of sales. YUM’s enterprise value to sales ratio is around 6.67, showing the company’s total value compared to its sales.

YUM’s enterprise value to operating cash flow ratio is approximately 29.83, highlighting the company’s valuation in relation to its cash flow from operations. The earnings yield is about 3.46%, representing the return on investment for shareholders. Despite a negative debt-to-equity ratio of approximately -1.46, YUM maintains a current ratio of around 1.40, suggesting its ability to cover short-term liabilities with short-term assets.

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