Earnings Preview: Yum! Brands Earnings Expected to Increase Over Last Quarter

Get ready for Yum! Brands earnings! Don't be the last to know: Yum! Brands YUM announces its next round of earnings this Wednesday, July 13, 2011. Want to skip the homework and get all the facts in one place? We thought so. Here is your everything-that-matters guide for this Wednesday's second quarter earnings announcement. The Numbers: Analysts are predicting a positive EPS reading of $0.61 and revenues of $2.7 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's profit of $0.59 per share on revenues of $2.57 billion. We will have to wait for Wednesday to see if Yum! Brands has accomplished a 108.5% increase in EPS and a 105.1% rise in revenues on a year-over-year basis. Here's how the company's reported EPS has stacked up against analyst estimates in the past:
Q1 EPS $0.63 vs. $0.64 Estimate
Q4 EPS $0.63 vs. $0.60 Estimate
Q3 EPS $0.73 vs. $0.72 Estimate
Q2 EPS $0.58 vs. $0.54 Estimate Stock Performance: At last check, shares of Yum! Brands were trading at $55.59. Shares are up 14.5% year to date. For a full 12 months, the return has risen by 17.9%. Given that these returns are generally positive, long-term shareholders may be satisfied going into this earnings release. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release. Average Stock Rating: The average rating by analysts for Yum! Brands is Hold. The strength of this rating has stayed consistent over the past three months. Competitors: Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Yum! Brands' peers.

• Chipotle Mexican Grill CMG: Hold with a previous quarter EPS of  $1.46
• Domino's Pizza DPZ: Hold with a previous quarter EPS of $0.42
• Jack in the Box JACK: Hold with a previous quarter EPS of $0.13
• McDonald's MCD: Moderate Buy with a previous quarter EPS of $1.15

Yum! Brands is in the Hotels, Restaurants and Leisure industry, which has experienced price/earnings growth of 1.42.

Finally, a description of the main business areas of the company, in case you need a little refresher: Yum Brands develops, operates, franchises and licenses a system of restaurants. Take Action: Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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