Yum! Brands, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Yum! Brands, Inc. (NYSE:YUM) will unveil its latest earnings on Tuesday, October 4, 2011. Yum Brands 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 82 cents per share, a rise of 12.3% 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 84 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 83 cents during the last month. For the year, analysts are projecting profit of $2.85 per share, a rise of 12.6% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported net income of 66 cents per share against a mean estimate of profit of 61 cents per share. In the first quarter, it missed forecasts by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $3.09 billion in revenue this quarter, a rise of 8% from the year ago quarter. Analysts are forecasting total revenue of $12.23 billion for the year, a rise of 7.8% from last year’s revenue of $11.34 billion.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, none rating it as a sell and six rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 10.5% while it rose 9.5% in the first quarter and 26.9% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9.4% to $2.82 billion in second quarter. The figure rose 3.4% in the first quarter from the year earlier, climbed 5.9% in the fourth quarter of the last fiscal year from the year-ago quarter and 3% in the third 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), Morgan’s Foods, Inc. (MRFD), 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), Jack in the Box Inc. (NASDAQ:JACK), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC) and AFC Enterprises, Inc. (NASDAQ:AFCE).

Stock Price Performance: During July 5, 2011 to September 28, 2011, the stock price had fallen $3.77 (-6.7%) from $56.34 to $52.57. 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% (+$3.16) 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% (-$1.98) over that span. Shares are up $4.23 (+8.8%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.