GET DAILY SIGNALSYum 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.
Momentum Indicator for YUM turns positive, indicating new upward trend
YUM saw its Momentum Indicator move above the 0 level on October 08, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In 41 of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at 47%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for YUM just turned positive on October 06, 2026. Looking at past instances where YUM's MACD turned positive, the stock continued to rise in 22 of 49 cases over the following month. The odds of a continued upward trend are 45%.
YUM moved above its 50-day moving average on October 12, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for YUM crossed bullishly above the 50-day moving average on October 19, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 22 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 32%.
Following a +3.49% 3-day Advance, the price is estimated to grow further. Considering data from situations where YUM advanced for three days, in 147 of 321 cases, the price rose further within the following month. The odds of a continued upward trend are 46%.
The Aroon Indicator entered an Uptrend today. In 67 of 181 cases where YUM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 37%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 42%.
YUM broke above its upper Bollinger Band on October 08, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 10 (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 Profit vs. Risk Rating rating for this company is 31 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. YUM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 65 (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 (-5.967) is normal, around the industry mean (-0.451). P/E Ratio (19.449) is within average values for comparable stocks, (17.442). Projected Growth (PEG Ratio) (1.725) is also within normal values, averaging (7.754). Dividend Yield (0.019) settles around the average of (0.048) among similar stocks. P/S Ratio (4.413) is also within normal values, averaging (2.618).
The Tickeron PE Growth Rating for this company is 79 (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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