Yum Brands (YUM,$103.34) misses Q3 earnings expectations
On Wednesday, Yum Brands posted quarterly earnings that missed analysts’ expectations.
The company, which owns several restaurant-chains such as Taco Bell, KFC and Pizza Hut, reported third quarter adjusted earnings of 80 cents a share, compared to analysts’ estimate of 94 cents.
Net revenue of $1.34 billion in the quarter was almost in line with the $1.344 billion expected by analysts. But the figure was -4% lower from the year-ago quarter.
According to Yum, changing the fair value of its GrubHub investment pulled down earnings by 15 cents per share. Last year, Yum bought a 3% stake in the third-party delivery app.
Yum’s Pizza Hut reported flat same-store sales growth, falling short of Wall Street’s estimates of +1.5%. Last quarter, executives said that Pizza Hut could shut down more than 400 stores to restructure franchisees’ businesses.
KFC narrowly missed same-store sales expectations. In the U.S., same-store sales declined by -1%.
However, Yum’s Taco Bell chain experienced same-store sales growth of +4%, which is higher than expectations of +3.5%. Executives said the chain had its fastest third quarter in five years with respect to service times.
During the quarter, Yum opened 389 net new restaurants across all three chains.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
YUM's Stochastic Oscillator stays in oversold zone for 5 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where YUM's RSI Oscillator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where YUM advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
YUM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 175 cases where YUM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on YUM as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for YUM turned negative on August 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
YUM moved below its 50-day moving average on July 31, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for YUM crossed bearishly below the 50-day moving average on July 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 21 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The 50-day moving average for YUM moved below the 200-day moving average on August 10, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where YUM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (6.042). P/E Ratio (18.230) is within average values for comparable stocks, (39.039). Projected Growth (PEG Ratio) (1.909) is also within normal values, averaging (1.728). Dividend Yield (0.020) settles around the average of (0.027) among similar stocks. P/S Ratio (4.630) is also within normal values, averaging (2.293).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. YUM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a company that owns and franchises quick-service restaurants
Industry Restaurants
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