February 4, 2026
Finance

Wall Street Analysts Adjust Forecasts for Yum! Brands Ahead of Q4 Earnings Report

Yum! Brands' Q4 results expected to show growth as analysts revise price targets and ratings

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Summary

Ahead of Yum! Brands' forthcoming fourth-quarter earnings release, Wall Street analysts have updated their earnings estimates, price targets, and ratings for the company. The Louisville-based restaurant operator is anticipated to deliver increased earnings per share and revenue compared to the prior year. Analyst opinions vary with a number of price target increases and rating changes reflecting differing outlooks.

Key Points

Yum! Brands is expected to report Q4 earnings of $1.76 per share, up from $1.61 in the prior year period.
Projected quarterly revenue is $2.45 billion, modestly higher than $2.36 billion last year.
Several prominent analysts have increased price targets and modified ratings ahead of the earnings announcement.
The stock price showed positive movement recently, closing at $158.74 with a 1.7% gain prior to earnings release.

Yum! Brands, Inc. (NYSE: YUM), the global fast-food giant headquartered in Louisville, Kentucky, is preparing to announce its financial results for the fourth quarter before the market opens on Wednesday, February 4. Investors and market watchers are closely analyzing consensus estimates which anticipate a solid performance relative to the previous year.

Current analyst expectations call for Yum! Brands to report earnings of $1.76 per share for its most recent quarter, representing an increase over the $1.61 per share delivered in the fourth quarter of the prior year. Similarly, revenue projections stand at approximately $2.45 billion, up from $2.36 billion during the same period last year. These figures suggest modest growth in both profitability and top-line sales.

This forecast builds on the company’s third-quarter results delivered in early November, when Yum! Brands recorded adjusted earnings per share of $1.58. That performance surpassed the analyst consensus estimate of $1.49, highlighting the company’s ability to exceed market expectations and indicating operational strength heading into the final quarter of the fiscal year.

Reflecting investor confidence ahead of the earnings release, Yum! Brands’ stock price increased by 1.7% on Tuesday, closing at $158.74. This price movement demonstrates market anticipation and optimism about the forthcoming results and any accompanying forward guidance.

Wall Street analysts who have demonstrated accuracy in their stock assessments recently have revisited their evaluations of Yum! Brands, resulting in updated ratings and price targets. Below is a review of some notable analyst viewpoints and adjustments:

  • Citigroup: Analyst Jon Tower reaffirmed a Neutral rating on Yum! Brands, while elevating the price target from $164 to $170 as of January 22, 2026. Tower brings a 70% accuracy rate to his analyst forecasts, suggesting reliability in his assessment methodology.
  • Morgan Stanley: John Glass continues to hold an Equal-Weight rating on the stock, simultaneously raising his price target to $176 from the prior $165, as dated January 20, 2026. Glass’s accuracy rate stands at 61%, reflecting a moderately reliable track record in his stock ratings.
  • Gordon Haskett: Jeff Farmer has upgraded Yum! Brands from a Hold to a Buy rating as of January 8, 2026. Farmer’s accuracy rate is 68%, indicating a strong confidence in his stock selection capability.
  • Barclays: Jeffrey Bernstein maintained an Overweight rating and increased his price target from $175 to $179, reflecting strong bullish sentiment as of January 7, 2026. Bernstein’s history shows a 63% accuracy rate in his analyst recommendations.
  • Oppenheimer: Contrarily, Brian Bittner adjusted his view downward by downgrading the stock from Outperform to Perform rating on January 7, 2026. Bittner carries a 61% accuracy rate, indicating a cautious revision amid changing circumstances or outlooks.

These diverging analyst stances exemplify the range of perspectives on Yum! Brands as the company prepares to release its earnings report. While several prominent analysts are raising their price targets and upgrading their recommendations, at least one has adopted a more conservative outlook.

For market participants considering an investment in Yum! Brands shares, understanding these analyst insights, revisions, and the upcoming financial release will be essential to making informed decisions. The combination of earnings growth expectations, recent price movements, and evolving analyst opinions creates a dynamic environment warranting close attention in the coming days.

Risks
  • Analyst opinions diverge with some downgrading or maintaining neutral ratings, reflecting uncertainty in near-term outlook.
  • Potential volatility in share price stemming from earnings results differing from consensus estimates.
  • Market reaction could be affected by the degree to which actual results and guidance align with raised price targets and analyst expectations.
Disclosure
Education only / not financial advice
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