Fast-food company Yum China 
YUMCwill be announcing earnings results this Wednesday morning. Here’s what to look for.
Yum China beat analysts’ revenue expectations last quarter, reporting revenues of $2.82 billion, up 8.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ same-store sales estimates.
Is Yum China a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Yum China’s revenue to grow 7.6% year on year, improving from its flat revenue in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yum China has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Yum China’s peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Domino’s delivered year-on-year revenue growth of 3.5%, missing analysts’ expectations by 1%, and Kura Sushi reported revenues up 23.3%, topping estimates by 2.5%. Kura Sushi traded down 17.8% following the results.
Read our full analysis of Domino’s results here and Kura Sushi’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 12.1% on average over the last month. Yum China is down 1.4% during the same time and is heading into earnings with an average analyst price target of $62.54 (compared to the current share price of $47.67).
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