With a market cap of $43.6 billion, Yum! Brands, Inc. (YUM) is one of the world's largest quick-service restaurant (QSR) companies, operating a highly franchised portfolio of iconic restaurant brands, including KFC, Taco Bell, and Habit Burger & Grill. Headquartered in Louisville, Kentucky, the company has a global footprint of more than 63,000 restaurants across over 155 countries and territories, with the vast majority operated by franchisees.
The fast food titan is expected to announce its Q2 2026 results on Thursday, July 30, before the market opens. Ahead of this event, analysts predict Yum! Brands to report an adjusted EPS of $1.59, up 10.4% from $1.44 in the year-ago quarter. It has exceeded Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions.
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For fiscal 2026, analysts forecast the company to report an adjusted EPS of $6.74, an 11.4% rise from $6.05 in fiscal 2025. Moreover, adjusted EPS is anticipated to grow 9.5% year over year to $7.38 in fiscal 2027.
www.barchart.comShares of Yum! Brands have gained 5.2% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 21.3% return and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 6.8% increase over the period.
www.barchart.comOn Jul. 15, Yum! Brands' shares fell 4.5% after reports emerged that federal and state health officials were investigating whether lettuce served at Taco Bell was linked to a multistate cyclospora outbreak. As a precaution, Taco Bell removed lettuce and certain fresh ingredients from select restaurants while the investigation remained ongoing. According to the CDC, the outbreak has resulted in 1,645 confirmed cases and 141 hospitalizations, with Michigan, Ohio, and New York reporting the highest number of cases.
On the other hand, Yum! Brands' shares gained 1.9% on Jun. 16 after the company announced a $2.7 billion deal to sell Pizza Hut, as the chain grapples with intensifying competition, soft consumer demand, and rising cost pressures. Under the agreement, Yum China will acquire Pizza Hut's mainland China business for $1.2 billion, while private equity firm LongRange Capital will purchase the remainder of the business for $1.5 billion.
Analysts' consensus view on YUM stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 27 analysts covering the stock, 11 recommend "Strong Buy," one suggests “Moderate Buy,” and 15 indicate “Hold.” The average analyst price target for Yum! Brands is $173.71, indicating a potential upside of 13.9% from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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