--- canonical_url: https://www.stockexpertai.com/earnings/yum last_updated: 2026-05-05T22:02:09.331Z --- # Yum! Brands, Inc. (YUM) Q1 FY2027 Earnings Preview > This content was automatically generated with FMP live data + Q1 FY2026 earnings call transcript. Generated: 2026-05-05T22:02:09.014Z. Educational tool, not investment advice. --- ## Quick Summary | Field | Value | Source | |---|---|---| | Price | $153.89 (▼ -0.33%) | fmp:quote | | Market Cap | $42.5B | fmp:profile | | 52w range | $137.33 – $169.39 | fmp:quote | | Earnings | Tue 4 Aug | fmp:earnings-history | | EPS estimate | $1.59 (+10% YoY) | fmp:earnings-estimate | | Revenue estimate | $2.2B | fmp:earnings-estimate | | Beat streak | 1/4 | fmp:earnings-history | | Rating | B- (overall 2/5) | fmp:ratings | | Analyst median target | $179 (+16.3% upside) | fmp:price-target-consensus | | MoonshotScore | 44/100 | derived | | Council | 1/6 bullish | derived | | Munger verdict | Fairly Valued | derived | ## Yum! Brands, Inc. — Q1 FY2027 Expectations Q1 consensus: revenue $2.2B^{[FMP est]}, EPS $1.59^{[FMP est]}. 1 consecutive quarters of beat^{[FMP earnings]}. ## Quick Take **Score:** B- · **Stance:** BUY · **Council:** 1/6 · **Moonshot:** 44 = MoonshotScore 44^{[9-pillar formula]} + Council 1/6^{[6-lens rule]}. Form 4: 0 transactions^{[FMP Form 4]}. ## Watchlist (6 metrics) ### 1. Taco Bell Margin Guidance Yum! now expects Taco Bell U.S. restaurant level margins to be between 24.5% and 25.5%, reflecting better top line momentum and higher margins than originally planned from the acquired Taco Bell stores. > "We now expect Taco Bell U.S. restaurant level margins to be between 24.5% and 25.5%, reflecting better top line momentum and higher margins than originally planned from the acquired Taco Bell stores." > — Ranjith Roy, CFO, Expectation / Guide · Q1 FY2026 ### 2. Kfc Unit Growth KFC delivered strong development with 7% unit growth in Q1 and a record number of Q1 gross builds. > "On top of KFC's distinctiveness and innovation, the brand is driving system sales through industry-leading development with 7% unit growth in Q1 and a record number of Q1 gross builds." > — Christopher Turner, CEO, Investor Focus · Q1 FY2026 ### 3. Ai Driven Efficiency Yum! is capturing efficiency improvements from AI, enabling it to accelerate the pace of technology innovation substantially and expand the pipeline of value-added digital and technology initiatives. > "We are currently building an enhanced version of the Byte Kitchen Display System, with an overall team that is half the size of what it would have been in the past, enable us to accelerate the pace of technology innovation substantially and expand the pipeline of value-added digital and technology initiatives our team members can work on." > — Ranjith Roy, CFO, Investor Focus · Q1 FY2026 ### 4. Taco Bell Same Store Sales Taco Bell U.S. reported 8% same-store sales growth, meaningfully outperforming the industry. > "Taco Bell U.S. reported 8% same-store sales growth, meaningfully outperforming the industry." > — Christopher Turner, CEO, Investor Focus · Q1 FY2026 ### 5. Byte Platform Expansion Taco Bell U.K. became the first international market to onboard both the Byte digital ordering and smart ops bundles, demonstrating the platform scalability across markets and brands. > "This quarter, Taco Bell U.K. became the first international market to roll out both the digital ordering and Smart Ops bundles." > — Christopher Turner, CEO, Investor Focus · Q1 FY2026 ### 6. Taco Bell Digital Innovation Taco Bell is leaning into the fast-growing beverage category by introducing highly differentiated offerings and aims to make its beverage platform a category of its own. > "For instance, through findings from Colider, our in-house consumer insights agency, Taco Bell and KFC are leaning into the fast-growing beverage category by introducing highly differentiated offerings." > — Christopher Turner, CEO, Investor Focus · Q1 FY2026 ## MoonshotScore Pillars | Pillar | Score | Level | Evidence | |---|---|---|---| | Revenue Growth | 3.0 | weak | Q1 vs Q2: moderate growth (+6.6%) | | Gross Margin | 4.0 | medium | Q1: average margin (44.7%) | | Operating Leverage | 3.0 | weak | op margin very strong (31.3%, scale leverage) | | Cash Runway | 10.0 | strong | FCF very strong ($0.3B, 4.5× CapEx) | | R&D Intensity | 3.0 | weak | low R&D investment (0.0%, weak innovation) | | Price Momentum | 4.0 | medium | RSI 39.6 weak momentum, 50d below | | News Sentiment | 4.0 | medium | mixed (41% buy) | **Formula:** sum(pillar.score) / (count * 10) * 100. Each pillar deterministic from FMP. Source maps in pillar.formula. ## Council (7-Lens) | Name | Stance | Context | |---|---|---| | Ray Dalio | bull | macro · target upside +16.3% | | Ken Griffin | bear | flow · 50d MA below | | Jim Simons | neutral | quant · RSI 40 | | Klarman | neutral | value · target upside +16.3% | | Buffett | neutral | quality · ROE score 1/5 | | Munger | neutral | valuation · target upside +16.3% | **Formula:** Each lens uses deterministic rule on bundle data. Logged in member.contextTr. ## Munger Lens - **Verdict:** Fairly Valued - **Financial Health:** Weak - **Margin of Safety:** Moderate - **Interest Coverage:** Adequate - **ROIC vs WACC:** Tight **Formula:** verdict=upside>25?Undervalued:>0?Fairly Valued:Overvalued. Each lens deterministic from FMP ratings + priceTarget. ## Technical Levels - **RSI(14):** 39.6 — momentum zayıf — oversold yakınında değil ama alıcı baskısı az - **50d MA:** $159 — hisse %3.4 altında — kısa vadeli direnç - **200d MA:** $152 — hisse %1.1 üstünde — uzun vadeli destek - **Volume (10d):** -34% ## Past Performance (4 Quarters) | Quarter | EPS Actual | EPS Estimate | Result | Reaction | |---|---|---|---|---| | Q2 FY25 | $1.44 | $1.46 | MISS | +1.3% | | Q3 FY25 | $1.58 | $1.49 | BEAT | -0.1% | | Q4 FY25 | $1.73 | $1.76 | MISS | +1.0% | | Q1 FY26 | $1.50 | $1.38 | +8.7% EPS | -0.1% | Q1 (April 29, 2026): EPS $1.50 vs $1.38 est^[FMP], +8.7% beat. D+1 movement: -0.1%^{[FMP D+1]}. Decline despite beat — market reacted to guidance, not numbers. ## 3 Scenarios ### Scenario A · Beat **Q1 EPS > $1.59 + CapEx discipline** Threshold: EPS > $1.59^{[FMP est]}. Target: Break above median target $179^{[FMP target]}; high target $190^[FMP] upper bound. ### Scenario B · In-Line **EPS ≈ $1.59 + CapEx < $75.0M** Threshold: EPS ≈ $1.59^{[FMP est]}, Q1 CapEx < $75.0M^[FMP]. Target: Consolidation in the band between current $154^[FMP] and median $179^[FMP]. ### Scenario C · Miss **EPS < $1.54 or CapEx ≥ $75.0M** Threshold: EPS < $1.54^{[FMP est×0.97]}. Target: Current $154 below SMA200 $152^[FMP], if rejection continues, $129^[derived] support activates. ## Risk Notes ### Primary segment below threshold Q1: EPS $1.50 vs $1.38 beat^[FMP], stock -0.1% D+1^[FMP]. ### Backlog concentration No RPO/backlog concentration disclosed in Q1 earnings call. ### Insider trading Form 4 data is marked in the table — this page does not generate assumptions for this stock. | Executive | Action | Amount | Date | |---|---|---|---| **Net:** — (0 transactions · 0 sells · 0 buys) · Q1 FY26 ### CapEx shock Q1 CapEx $75.0M^{[FMP cashflow]}. Q1 op margin 31.3%^{[FMP op margin]} — this level in Q1 is sensitive to CapEx revision risk. ## Wall Street Consensus - **Median target:** $179 (+16.3% upside vs current $154) - **High / Low:** $190 / $160 - **Buy / Hold / Sell:** 12 / 17 / 0 - **Analyst count:** 6 (last quarter), 58 all-time ## Additional Transcript Insights ### 1. kfc_unit_growth **Claim:** KFC delivered strong development with 7% unit growth in Q1 and a record number of Q1 gross builds. **Evidence (transcript):** "On top of KFC's distinctiveness and innovation, the brand is driving system sales through industry-leading development with 7% unit growth in Q1 and a record number of Q1 gross builds." **Numbers:** 7%, Q1 ### 2. taco_bell_same_store_sales **Claim:** Taco Bell U.S. reported 8% same-store sales growth, meaningfully outperforming the industry. **Evidence (transcript):** "Taco Bell U.S. reported 8% same-store sales growth, meaningfully outperforming the industry." **Numbers:** 8% ### 3. taco_bell_digital_innovation **Claim:** Taco Bell is leaning into the fast-growing beverage category by introducing highly differentiated offerings and aims to make its beverage platform a category of its own. **Evidence (transcript):** "For instance, through findings from Colider, our in-house consumer insights agency, Taco Bell and KFC are leaning into the fast-growing beverage category by introducing highly differentiated offerings." **Numbers:** — ### 4. byte_platform_expansion **Claim:** Taco Bell U.K. became the first international market to onboard both the Byte digital ordering and smart ops bundles, demonstrating the platform scalability across markets and brands. **Evidence (transcript):** "This quarter, Taco Bell U.K. became the first international market to roll out both the digital ordering and Smart Ops bundles." **Numbers:** — ### 5. ai_driven_efficiency **Claim:** Yum! is capturing efficiency improvements from AI, enabling it to accelerate the pace of technology innovation substantially and expand the pipeline of value-added digital and technology initiatives. **Evidence (transcript):** "We are currently building an enhanced version of the Byte Kitchen Display System, with an overall team that is half the size of what it would have been in the past, enable us to accelerate the pace of technology innovation substantially and expand the pipeline of value-added digital and technology initiatives our team members can work on." **Numbers:** — ### 6. taco_bell_margin_guidance **Claim:** Yum! now expects Taco Bell U.S. restaurant level margins to be between 24.5% and 25.5%, reflecting better top line momentum and higher margins than originally planned from the acquired Taco Bell stores. **Evidence (transcript):** "We now expect Taco Bell U.S. restaurant level margins to be between 24.5% and 25.5%, reflecting better top line momentum and higher margins than originally planned from the acquired Taco Bell stores." **Numbers:** 24.5%, 25.5% --- *Data source: FMP (live query, 2026-05-05), Q1 FY2026 earnings call transcript (Translated to EN with Gemini 2.0 Flash). Educational tool, not investment advice.*