Yum China (NYSE:YUMC) Shareholders to Collect $0.29 Quarterly Dividend

Key Points

• Yum China declared a quarterly dividend of $0.29 per share, payable December 22 to shareholders of record December 1. That equals $1.16 annually and a 2.4% yield.
• The dividend appears well covered: the current payout ratio is 40.1%, and the company has raised its dividend each year for five years. Analysts expect a lower 33.7% payout ratio based on next year’s projected earnings.
• Yum China reported quarterly EPS of $0.91, topping the $0.88 consensus, while revenue of $3.48 billion came in slightly below estimates. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $59.21.

Yum China (NYSE:YUMC - Get Free Report) announced a quarterly dividend on Tuesday, November 3rd. Shareholders of record on Tuesday, December 1st will be given a dividend of $0.29 per share on Tuesday, December 22nd. This represents a $1.16 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Tuesday, December 1st.

Yum China has increased its dividend by an average of 0.3% per year over the last three years and has raised its dividend every year for the last 5 years. Yum China has a dividend payout ratio of 40.1% meaning its dividend is sufficiently covered by earnings. Analysts expect Yum China to earn $3.44 per share next year, which means the company should continue to be able to cover its $1.16 annual dividend with an expected future payout ratio of 33.7%.

Yum China Price Performance

Shares of Yum China stock traded up $0.72 during trading on Tuesday, hitting $47.80. 2,838,139 shares of the company's stock traded hands, compared to its average volume of 1,606,793. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.96 and a quick ratio of 0.78. The firm's fifty day moving average price is $43.34 and its 200 day moving average price is $46.82. Yum China has a twelve month low of $39.72 and a twelve month high of $58.39. The company has a market cap of $16.37 billion, a PE ratio of 17.51, a PEG ratio of 1.17 and a beta of 0.07.

Yum China (NYSE:YUMC - Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported $0.91 EPS for the quarter, beating the consensus estimate of $0.88 by $0.03. The business had revenue of $3.48 billion for the quarter, compared to analyst estimates of $3.50 billion. Yum China had a return on equity of 15.82% and a net margin of 7.84%. Yum China's quarterly revenue was up 8.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.76 EPS. Analysts forecast that Yum China will post 2.95 earnings per share for the current year.

Analysts Set New Price Targets

YUMC has been the subject of several research analyst reports. Wall Street Zen cut shares of Yum China from a "buy" rating to a "hold" rating in a research report on Saturday, October 10th. Weiss Ratings raised Yum China from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday. Finally, The Goldman Sachs Group restated a "buy" rating and set a $59.00 target price on shares of Yum China in a research report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $59.21.

Yum China Company Profile

Yum China Holdings, Inc is a restaurant company focused on operating and developing quick-service and casual-dining brands in China. Headquartered in Shanghai, the company serves customers across mainland China through a large network of company-owned and franchised restaurants, supported by digital ordering, delivery and loyalty platforms.

Its principal brands include KFC, Pizza Hut and Taco Bell, for which Yum China holds the exclusive rights to operate and franchise restaurants in China.

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