Fast-food company Yum! Brands (NYSE:YUM) will be reporting results tomorrow before the bell. Here's what to look for.

Yum! Brands missed analysts' revenue expectations by 3.3% last quarter, reporting revenues of $2.04 billion, flat year on year. It was a slower quarter for the company, with a miss of analysts' earnings estimates.

Is Yum! Brands a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Yum! Brands's revenue to grow 4% year on year to $1.71 billion, slowing from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.20 per share.

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! Brands has missed Wall Street's revenue estimates five times over the last two years.

Looking at Yum! Brands's peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Yum China delivered year-on-year revenue growth of 1.4%, missing analysts' expectations by 2.7%, and Domino's reported revenues up 5.9%, in line with consensus estimates. Yum China traded flat on the results, and Domino's was up 4.3%.

Read our full analysis of Yum China's results here and Domino's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share prices down 4.2% on average over the last month. Yum! Brands is up 1.5% during the same time and is heading into earnings with an average analyst price target of $144.5 (compared to the current share price of $142.51).

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