Zacks Research Has Negative Outlook of Yum China Q2 Earnings

Yum China Holdings, Inc. (NYSE:YUMC - Free Report) - Zacks Research reduced their Q2 2025 earnings per share (EPS) estimates for Yum China in a research note issued on Wednesday, May 14th. Zacks Research analyst H. Ray now forecasts that the company will post earnings of $0.57 per share for the quarter, down from their prior estimate of $0.60. The consensus estimate for Yum China's current full-year earnings is $2.54 per share. Zacks Research also issued estimates for Yum China's Q3 2025 earnings at $0.76 EPS, Q4 2025 earnings at $0.35 EPS, FY2025 earnings at $2.44 EPS, Q1 2026 earnings at $0.83 EPS, Q2 2026 earnings at $0.60 EPS, Q3 2026 earnings at $0.89 EPS, Q4 2026 earnings at $0.39 EPS, FY2026 earnings at $2.71 EPS, Q1 2027 earnings at $0.88 EPS and FY2027 earnings at $3.09 EPS.

Yum China (NYSE:YUMC - Get Free Report) last posted its earnings results on Wednesday, April 30th. The company reported $0.77 earnings per share for the quarter, missing the consensus estimate of $0.78 by ($0.01). The business had revenue of $2.98 billion for the quarter, compared to analysts' expectations of $3.13 billion. Yum China had a return on equity of 13.83% and a net margin of 8.06%. Yum China's revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.71 EPS.

Several other equities research analysts have also recently weighed in on YUMC. Daiwa America upgraded Yum China to a "strong-buy" rating in a research note on Wednesday, April 9th. StockNews.com cut Yum China from a "buy" rating to a "hold" rating in a research note on Tuesday, February 25th. One research analyst has rated the stock with a hold rating, two have given a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $48.70.

Yum China Stock Up 0.9%

YUMC stock traded up $0.40 during trading on Friday, hitting $44.61. 3,054,591 shares of the company's stock were exchanged, compared to its average volume of 2,944,984. The business has a 50-day moving average price of $47.13 and a two-hundred day moving average price of $47.37. The stock has a market capitalization of $16.65 billion, a price-to-earnings ratio of 19.15, a PEG ratio of 1.72 and a beta of 0.27. Yum China has a 52-week low of $28.50 and a 52-week high of $53.99. The company has a current ratio of 1.29, a quick ratio of 1.15 and a debt-to-equity ratio of 0.01.

Yum China Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 18th. Investors of record on Wednesday, May 28th will be issued a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a yield of 2.15%. The ex-dividend date is Wednesday, May 28th. Yum China's dividend payout ratio is presently 40.17%.

Insider Buying and Selling

In related news, CEO Joey Wat sold 37,252 shares of the company's stock in a transaction on Wednesday, March 5th. The stock was sold at an average price of $49.71, for a total transaction of $1,851,796.92. Following the transaction, the chief executive officer now owns 382,657 shares of the company's stock, valued at $19,021,879.47. This represents a 8.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Leila Zhang sold 4,000 shares of the company's stock in a transaction on Friday, March 14th. The stock was sold at an average price of $50.59, for a total value of $202,360.00. Following the transaction, the chief technology officer now directly owns 52,075 shares in the company, valued at $2,634,474.25. This represents a 7.13% decrease in their position. The disclosure for this sale can be found here. 0.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. GeoWealth Management LLC grew its holdings in Yum China by 689.6% in the fourth quarter. GeoWealth Management LLC now owns 529 shares of the company's stock valued at $25,000 after purchasing an additional 462 shares during the last quarter. Kentucky Trust Co acquired a new stake in Yum China in the fourth quarter valued at $29,000. Hughes Financial Services LLC acquired a new stake in Yum China in the first quarter valued at $29,000. SouthState Corp grew its holdings in Yum China by 4,915.4% in the first quarter. SouthState Corp now owns 652 shares of the company's stock valued at $34,000 after purchasing an additional 639 shares during the last quarter. Finally, CX Institutional acquired a new stake in Yum China in the first quarter valued at $37,000. Institutional investors and hedge funds own 85.58% of the company's stock.

Yum China Company Profile

Yum China Holdings, Inc owns, operates, and franchises restaurants in the People's Republic of China. The company operates through KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services.