Yum! Brands, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Yum! Brands, Inc. (NYSE:YUM) will unveil its latest earnings on Wednesday, July 13, 2011. Yum Brands, Inc. develops, operates, franchises and licenses a system of restaurants.

Yum! Brands, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 61 cents per share, a rise of 5.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 61 cents during the last month. For the year, analysts are projecting profit of $2.84 per share, a rise of 12.3% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported net income of 63 cents per share versus a mean estimate of profit of 64 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.7 billion in revenue this quarter, a rise of 5.1% from the year ago quarter. Analysts are forecasting total revenue of $11.98 billion for the year, a rise of 5.6% from last year’s revenue of $11.34 billion.

Analyst Ratings: Analysts are bullish on Yum! Brands as 10 analysts rate it as a buy, none rate it as a sell and 10 rate it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 9.5% while it rose 26.9% in the fourth quarter of the last fiscal year and 6.9% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 3.4% to $2.42 billion in first quarter. The figure rose 5.9% in the fourth quarter of the last fiscal year from the year earlier, climbed 3% in the third quarter of the last fiscal year from the year-ago quarter and 4% in the second quarter of the last fiscal year.

Competitors to Watch: McDonald’s Corporation (NYSE:MCD), Wendy’s Arby’s Group Inc. (NYSE:WEN), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Papa John’s Int’l, Inc. (NASDAQ:PZZA), Domino’s Pizza, Inc. (NYSE:DPZ), Chipotle Mexican Grill, Inc. (NYSE:CMG), Nathan’s Famous, Inc. (NASDAQ:NATH), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC), Jack in the Box Inc. (NASDAQ:JACK), and AFC Enterprises, Inc. (NASDAQ:AFCE).

Stock Price Performance: During April 8, 2011 to July 6, 2011, the stock price has risen $6.82 (13.8%) from $49.33 on April 8, 2011 to $56.15 on July 6, 2011. The stock price saw one of its best stretches over the last year between January 28, 2011, and February 8, 2011, when shares rose for eight-straight days, rising 6.9% (+$3.17) over that span. It saw one of its worst periods between March 10, 2011, and March 16, 2011, when shares fell for five-straight days, falling 3.8% (-$1.99) over that span. Shares are up $7.59 (+15.6%) year to date.

(Source: Xignite Financials)

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