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

Key Points

• Analyst consensus: Yum China has an average rating of "Moderate Buy" (three buys, one hold) with a 12‑month average price target of about $59.05.
• Insider selling: Insiders sold 135,117 shares in the past 90 days—including CEO Joey Wat's sale of 104,000 shares—totaling roughly $7.48 million and leaving insiders with 0.40% ownership.
• Financials & dividend: The company beat quarterly EPS estimates ($0.40 vs. $0.35) and reported $2.82B revenue (up 8.8% y/y), and raised its quarterly dividend to $0.29 ($1.16 annualized, a 2.4% yield).

Yum China (NYSE:YUMC - Get Free Report) has earned an average rating of "Moderate Buy" from the four ratings firms that are covering the company, MarketBeat reports. One equities research analyst has rated the stock with a hold rating and three have given a buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $59.0467.

A number of research firms recently weighed in on YUMC. Jefferies Financial Group restated a "buy" rating and issued a $63.64 target price on shares of Yum China in a report on Thursday, February 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Yum China in a research report on Wednesday, January 21st. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $58.50 price objective on shares of Yum China in a research report on Wednesday, February 4th. Finally, Wall Street Zen raised shares of Yum China from a "hold" rating to a "buy" rating in a research report on Saturday, February 7th.

Insiders Place Their Bets

In other Yum China news, CEO Joey Wat sold 104,000 shares of the company's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $55.18, for a total value of $5,738,720.00. Following the completion of the sale, the chief executive officer directly owned 433,306 shares of the company's stock, valued at approximately $23,909,825.08. This represents a 19.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Xueling Lu sold 23,504 shares of the company's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $55.84, for a total transaction of $1,312,463.36. Following the completion of the sale, the insider directly owned 9,042 shares of the company's stock, valued at $504,905.28. The trade was a 72.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 135,117 shares of company stock valued at $7,479,590. Corporate insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On Yum China

A number of institutional investors have recently added to or reduced their stakes in YUMC. Focus Partners Wealth grew its position in shares of Yum China by 13.8% during the 1st quarter. Focus Partners Wealth now owns 21,289 shares of the company's stock valued at $1,108,000 after acquiring an additional 2,582 shares during the period. Strs Ohio bought a new position in shares of Yum China during the 1st quarter valued at approximately $99,000. EverSource Wealth Advisors LLC grew its position in shares of Yum China by 60.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,522 shares of the company's stock valued at $68,000 after acquiring an additional 576 shares during the period. Qube Research & Technologies Ltd bought a new position in shares of Yum China during the 2nd quarter valued at approximately $14,659,000. Finally, Alliancebernstein L.P. grew its position in shares of Yum China by 13.1% during the 2nd quarter. Alliancebernstein L.P. now owns 5,871,382 shares of the company's stock valued at $262,509,000 after acquiring an additional 677,928 shares during the period. 85.58% of the stock is owned by institutional investors.

Yum China Trading Up 1.6%

YUMC opened at $48.82 on Friday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.05 and a quick ratio of 0.85. Yum China has a fifty-two week low of $41.69 and a fifty-two week high of $58.39. The firm has a market capitalization of $17.14 billion, a PE ratio of 19.45, a P/E/G ratio of 1.36 and a beta of 0.17. The company's 50-day moving average is $51.56 and its 200 day moving average is $48.98.

Yum China (NYSE:YUMC - Get Free Report) last posted its earnings results on Wednesday, February 4th. The company reported $0.40 earnings per share for the quarter, topping analysts' consensus estimates of $0.35 by $0.05. Yum China had a net margin of 7.87% and a return on equity of 14.65%. The company had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.72 billion. During the same quarter in the prior year, the business posted $0.30 EPS. The firm's revenue was up 8.8% compared to the same quarter last year. As a group, research analysts predict that Yum China will post 2.91 earnings per share for the current fiscal year.

Yum China Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th were given a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Wednesday, March 4th. This is a positive change from Yum China's previous quarterly dividend of $0.24. Yum China's payout ratio is currently 46.22%.

About Yum China

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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