Yum's Q3 Results On Deck: What Does The Street Think?

Ahead of the earnings announcement for the third quarter from Yum! Brands, Inc. YUM, investors sentiment on the stock remained week on Wednesday as the stock traded in the red.

Analysts are looking forward to analyst day on October 11, where the focus would be more on the separation of China division.

Following are the brokerage's current sentiment:

• Bernstein sees challenges in valuing the China division and its fundamental outlook. The firm, which expects EPS of $1.12 for the third quarter, has an Outperform rating and $98 target price.
• RBC Capital Markets sees recovery in China sales and expects EPS to be $1.09, which is above consensus estimate of $1.07. The brokerage considered it a top pick with a price objective of $103.
• Deutsche Bank thinks that fundamentals are critical to value the separating companies. The brokerage expects EPS of $1.06, which is below the consensus. The firm has Hold rating and a price target of $86.
• Goldman Sachs is concerned on the implication of VAT on China margins and the forecast for G&A reduction after the separation. The brokerage retained Sell rating and target price of $70.