Yum China (NYSE:YUMC) Plans Quarterly Dividend of $0.07

Key Points

• Yum China announced a quarterly dividend of $0.075 per share, payable September 17 to shareholders of record August 27. The dividend implies an annualized yield of approximately 0.6%.
• The dividend appears well covered, with a current payout ratio of 40.1% and an expected future payout ratio of 34.3%; the company has increased its dividend for five consecutive years.
• Yum China reported quarterly earnings of $0.70 per share and revenue of $3.14 billion, beating analyst estimates of $0.67 EPS and $3.05 billion in revenue. Revenue increased 12.6% year over year.

Yum China (NYSE:YUMC - Get Free Report) announced a quarterly dividend on Thursday, July 30th. Stockholders of record on Thursday, August 27th will be paid a dividend of 0.075 per share on Thursday, September 17th. This represents a c) annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Thursday, August 27th.

Yum China has raised its dividend payment by an average of 0.3%annually over the last three years and has raised its dividend annually for the last 5 consecutive years. Yum China has a dividend payout ratio of 40.1% indicating that its dividend is sufficiently covered by earnings. Analysts expect Yum China to earn $3.38 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 34.3%.

Yum China Price Performance

Shares of Yum China stock opened at $46.45 on Friday. The company has a current ratio of 1.01, a quick ratio of 0.83 and a debt-to-equity ratio of 0.01. The company's 50-day moving average price is $43.07 and its two-hundred day moving average price is $47.96. Yum China has a 52 week low of $40.15 and a 52 week high of $58.39. The stock has a market cap of $16.22 billion, a PE ratio of 17.80, a price-to-earnings-growth ratio of 1.28 and a beta of 0.10.

Yum China (NYSE:YUMC - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.67 by $0.03. The company had revenue of $3.14 billion during the quarter, compared to analyst estimates of $3.05 billion. Yum China had a net margin of 7.83% and a return on equity of 15.11%. The business's revenue for the quarter was up 12.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.58 EPS. As a group, sell-side analysts anticipate that Yum China will post 2.94 EPS for the current fiscal year.

Hedge Funds Weigh In On Yum China

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in YUMC. Principal Financial Group Inc. lifted its stake in Yum China by 8.9% in the 4th quarter. Principal Financial Group Inc. now owns 21,957,111 shares of the company's stock worth $1,039,945,000 after acquiring an additional 1,787,450 shares in the last quarter. Massachusetts Financial Services Co. MA grew its stake in Yum China by 5.0% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 4,971,031 shares of the company's stock valued at $237,317,000 after acquiring an additional 236,736 shares in the last quarter. Mondrian Investment Partners LTD increased its holdings in shares of Yum China by 112.0% in the 4th quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company's stock valued at $374,959,000 after purchasing an additional 4,148,966 shares during the period. Teachers Retirement System of The State of Kentucky lifted its position in shares of Yum China by 42.4% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 752,360 shares of the company's stock worth $36,701,000 after purchasing an additional 224,060 shares in the last quarter. Finally, M&T Bank Corp boosted its holdings in shares of Yum China by 271.1% during the fourth quarter. M&T Bank Corp now owns 171,689 shares of the company's stock worth $8,196,000 after purchasing an additional 125,420 shares during the period. Institutional investors and hedge funds own 85.58% of the company's stock.

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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