Yum Brands, Inc. (YUM) is set to report second-quarter earnings on July 14. The company is on a hot streak, surprising on estimates the last 4 quarters by an average of 9.19%.

Chinese growth has been the big story at the company as first-quarter sales grew 12% in China with profit climbing 21% prior to foreign currency translation. The company is still on track to open at least 475 new units for the year in mainland China.

The company warned in its first-quarter earnings release in early May that the second quarter would be its most difficult quarter.

However second-quarter consensus estimates have been holding at 43 cents over the last 2 months.

Covering analysts are more bullish on the full year.

2009 consensus estimates have moved 2 cents higher to $2.12 per share in the last 2 months which is 2 cents higher than the company’s own May guidance of $2.10. 3 out of 19 analysts raised in the last 30 days and 1 hiked estimates in just the last week.

Yum is scheduled to report second-quarter results on July 14.

Yum Brands is a Zacks #2 Rank (buy) stock. It is trading with a forward P/E of 16.6. Its current yield is a healthy 2.30%.

Zacks Investment Research
View original at: Zacks.com

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