Yum China (NYSE:YUMC) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts rate Yum China “Moderate Buy,” with three buy ratings and one hold; the average 12-month price target is $59.21 versus a recent price of $45.16.
• Yum China exceeded quarterly expectations, reporting $0.70 EPS and $3.14 billion in revenue, while revenue increased 12.6% year over year.
• The company declared a quarterly dividend of $0.29 per share, equivalent to $1.16 annually and a 2.6% yield; institutional investors own 85.58% of its shares.

Yum China (NYSE:YUMC - Get Free Report) has been given an average recommendation of "Moderate Buy" by the four ratings firms that are covering the company, MarketBeat reports. One research analyst has rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $59.2133.

A number of brokerages recently issued reports on YUMC. Weiss Ratings reissued a "hold (c)" rating on shares of Yum China in a research note on Friday, August 21st. Wall Street Zen upgraded Yum China from a "hold" rating to a "buy" rating in a research note on Monday, August 17th. Finally, The Goldman Sachs Group reiterated a "buy" rating and set a $59.00 target price on shares of Yum China in a research report on Thursday, July 30th.

Insider Transactions at Yum China

In related news, insider Duoduo (Howard) Huang sold 24,096 shares of Yum China stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $47.08, for a total transaction of $1,134,439.68. Following the completion of the sale, the insider owned 7,589 shares in the company, valued at $357,290.12. This trade represents a 76.05% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Jeff Kuai sold 14,586 shares of the business's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $47.72, for a total transaction of $696,043.92. Following the completion of the sale, the insider directly owned 63,541 shares of the company's stock, valued at approximately $3,032,176.52. This trade represents a 18.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.44% of the company's stock.

Institutional Trading of Yum China

A number of large investors have recently modified their holdings of the company. Principal Financial Group Inc. raised its position in Yum China by 8.9% during the 4th quarter. Principal Financial Group Inc. now owns 21,957,111 shares of the company's stock valued at $1,039,945,000 after purchasing an additional 1,787,450 shares in the last quarter. Teachers Retirement System of The State of Kentucky increased its stake in shares of Yum China by 42.4% during the first quarter. Teachers Retirement System of The State of Kentucky now owns 752,360 shares of the company's stock valued at $36,701,000 after buying an additional 224,060 shares during the period. Mondrian Investment Partners LTD raised its holdings in shares of Yum China by 112.0% in the fourth quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company's stock valued at $374,959,000 after acquiring an additional 4,148,966 shares in the last quarter. Assetmark Inc. lifted its stake in Yum China by 16.0% in the first quarter. Assetmark Inc. now owns 627,455 shares of the company's stock worth $30,607,000 after acquiring an additional 86,550 shares during the period. Finally, Sapient Capital LLC bought a new position in Yum China during the 1st quarter worth about $8,453,000. Hedge funds and other institutional investors own 85.58% of the company's stock.

Yum China Stock Performance

Yum China stock opened at $45.16 on Friday. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.96 and a quick ratio of 0.78. Yum China has a 1-year low of $40.15 and a 1-year high of $58.39. The firm has a market capitalization of $15.47 billion, a P/E ratio of 16.54, a price-to-earnings-growth ratio of 1.18 and a beta of 0.09. The company's 50-day moving average is $44.85 and its 200 day moving average is $47.63.

Yum China (NYSE:YUMC - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.03. The business had revenue of $3.14 billion during the quarter, compared to analyst estimates of $3.05 billion. Yum China had a return on equity of 15.82% and a net margin of 7.84%.The company's revenue for the quarter was up 12.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.58 earnings per share. Research analysts forecast that Yum China will post 2.95 EPS for the current year.

Yum China Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be paid a $0.29 dividend. This represents a $1.16 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Thursday, August 27th. Yum China's dividend payout ratio (DPR) is currently 42.49%.

Yum China Company Profile

Yum China Holdings, Inc operates as the largest quick-service restaurant company in China, through its ownership and franchising of brands such as KFC, Pizza Hut and Taco Bell. The company's core business encompasses full-service and fast‐casual dining, takeout and delivery channels, as well as ancillary services including loyalty programs and digital ordering platforms. Yum China's restaurants offer a diverse menu that adapts global brand concepts to local consumer preferences, featuring items such as soy‐marinated chicken, customized pizzas and region‐inspired side dishes.

In addition to its signature brands, Yum China has expanded its portfolio to include innovative concepts tailored to evolving market trends, such as plant‐based offerings, self‐service kiosks and mobile app integrations.

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