Here's What Analysts Are Forecasting For Yum! Brands, Inc. (NYSE:YUM) After Its Third-Quarter Results

As you might know, Yum! Brands, Inc. (NYSE:YUM) last week released its latest third-quarter, and things did not turn out so great for shareholders. Yum! Brands missed analyst forecasts, with revenues of US$1.8b and statutory earnings per share (EPS) of US$1.35, falling short by 3.6% and 4.7% respectively. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Yum! Brands

Following the latest results, Yum! Brands' 24 analysts are now forecasting revenues of US$8.07b in 2025. This would be a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 12% to US$6.11. Before this earnings report, the analysts had been forecasting revenues of US$8.18b and earnings per share (EPS) of US$6.28 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at US$144, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Yum! Brands analyst has a price target of US$158 per share, while the most pessimistic values it at US$130. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Yum! Brands' rate of growth is expected to accelerate meaningfully, with the forecast 9.2% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.1% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Yum! Brands is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$144, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Yum! Brands analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 4 warning signs for Yum! Brands (2 don't sit too well with us!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.