Yum China expected to report strong Q4 results with revenue and earnings growth

From Nasdaq: 2025-02-03 11:01:00

Yum China Holdings, Inc. (YUMC) is set to report fourth-quarter 2024 results on Feb. 6. In the last quarter, adjusted earnings beat estimates by 13.2% and grew 17% year over year. Revenues missed by 0.3% but increased by 5.4%. YUMC has consistently surpassed earnings estimates in the past four quarters.

The consensus estimate for YUMC’s total revenues in Q4 is $2.67 billion, a 7% increase from the previous year. Factors like new unit contributions, value-for-money offerings, and business model innovations are expected to drive revenue growth for the company.

Our model predicts YUMC’s adjusted operating profit margin to increase by 130 basis points to 6%, with adjusted EBITDA growing by 16.6% to $283.4 million. Despite challenges like wage increases and sales deleveraging, strategic initiatives are expected to boost the company’s bottom line.

Stocks in the Retail-Wholesale sector with potential to beat earnings include Amazon.com, Inc. (AMZN), Chipotle Mexican Grill, Inc. (CMG), and The Cheesecake Factory Incorporated (CAKE). These companies have positive Earnings ESP and Zacks Ranks, along with strong earnings growth expectations for the fourth quarter of 2024.



Read more at Nasdaq: Here’s What You Should Know About Yum China Ahead of Q4 Earnings