Yum! Brands Expected to Deliver 'Low-Controversy' Q1, RBC Says

MT Newswires Live04-20

Yum! Brands (YUM) is expected to report a "relatively low-controversy" Q1, RBC Capital Markets said Sunday in a report.

The Taco Bell US business likely continued to outperform compared with the broader quick-service category, with buy-side same-store sales expectations at least a few hundred basis points above the sell-side's 4.9% estimate, the report said.

For KFC International, a key focus in the earnings call will be any impact on international demand from higher fuel prices due to the conflict in the Middle East, the report said.

RBC said it doesn't expect a "meaningful" update on Pizza Hut's strategic review with the bidding process likely still underway.

RBC maintained its sector perform rating on Yum! stock with a $165 price target.

Q1 results are due April 29.

Price: 162.74, Change: -0.05, Percent Change: -0.03

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