Will Yum! Brands meet expectations in their upcoming financial report?
Yum! Brands (NYSE: YUM), the multinational restaurant company behind popular brands like Taco Bell, KFC, and Pizza Hut, is set to announce its second-quarter earnings on Tuesday, August 5, 2025.
Historically, Yum! Brands stock has shown a favorable market reaction to earnings news. According to data, the stock has risen approximately 63% of the time after earnings announcements, with a median one-day increase of 1.9%. This trend reflects consistent growth in earnings and strong brand momentum, particularly from divisions like Taco Bell and KFC [1][2].
The upcoming earnings announcement is anticipated to show a 12% increase in earnings year-over-year. Analysts predict earnings of $1.46 per share on $1.94 billion in revenue for Yum! Brands [3]. Sales are expected to rise by 10% compared to the previous year's figures, which is a positive sign of the company's ongoing growth.
In the first quarter of 2025, Yum! Brands delivered a robust performance, with strong earnings growth and momentum at Taco Bell and KFC [4]. This performance is expected to continue into the second quarter.
While short-term price moves can vary based on how results compare to market expectations and forward guidance, the historical trend is one of upside movement following earnings disclosures. For detailed daily price movements post-earnings, Nasdaq historical data can provide exact stock price changes around these announcements [5].
It's worth noting that the correlation between 1-day and 5-day post-earnings returns for Yum! Brands is strong, as outlined in the provided table. A lower-risk strategy for trading Yum! Brands post-earnings involves identifying the strongest correlation between short-term and medium-term returns. If the 1-day and 5-day returns exhibit the strongest correlation, a trader may choose to go "long" for the next 5 days if the 1-day post-earnings return is positive.
The performance of Yum! Brands stock is also compared to the stock performance of peers that reported earnings just prior to Yum Brands. The Trefis RV strategy, which has outperformed its all-cap stocks benchmark, delivering strong returns for investors, is used for this comparison.
Investors are advised to closely watch the upcoming earnings announcement and the market's reaction to it. Whether the trend of positive market reaction to Yum! Brands' earnings news continues remains to be seen. However, with the company's consistent growth and strong brand momentum, expectations are high for another positive quarter.
[1] Source: Investopedia [2] Source: The Motley Fool [3] Source: Yahoo Finance [4] Source: Seeking Alpha [5] Source: Nasdaq
- Investors who are interested in Yum! Brands (NYSE: YUM) might be keen to observe its second-quarter earnings on Tuesday, August 5, 2025, as historically, the stock has demonstrated a favorable market reaction to earnings news, with a median one-day increase of 1.9% and a strong growth trend, especially from divisions like Taco Bell and KFC.
- As Yum! Brands (NYSE: YUM) prepares to announce its earnings, some analysts predict earnings of $1.46 per share on $1.94 billion in revenue, with sales expected to rise by 10% compared to the previous year's figures. Such forecasts underscore the company's ongoing business growth, making it a potential attractive opportunity for investors in the finance and investing sectors.
