Yum China (NYSE:YUMC) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Yum China from “Buy” to “Hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $59.21.
• Yum China exceeded quarterly expectations, reporting $0.70 EPS versus the $0.67 estimate and $3.14 billion in revenue, up 12.6% year over year.
• Institutional investors have been active in the stock, and hedge funds and other institutions currently own 85.58% of Yum China’s shares.

Yum China (NYSE:YUMC - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

Several other equities research analysts have also recently weighed in on the company. Weiss Ratings cut Yum China from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, May 26th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $59.00 price objective on shares of Yum China in a research note on Thursday, July 30th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $59.21.

Yum China Price Performance

Yum China stock opened at $47.69 on Friday. The firm has a market capitalization of $16.65 billion, a P/E ratio of 17.47, a PEG ratio of 1.26 and a beta of 0.09. Yum China has a one year low of $40.15 and a one year high of $58.39. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.01 and a quick ratio of 0.83. The business has a fifty day moving average price of $43.57 and a 200-day moving average price of $47.96.

Yum China (NYSE:YUMC - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.67 by $0.03. The company had revenue of $3.14 billion for the quarter, compared to analyst estimates of $3.05 billion. Yum China had a return on equity of 15.73% and a net margin of 7.84%.The firm's revenue for the quarter was up 12.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.58 EPS. As a group, equities research analysts forecast that Yum China will post 2.95 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in YUMC. Norges Bank purchased a new stake in Yum China in the fourth quarter worth approximately $280,656,000. Mondrian Investment Partners LTD raised its stake in shares of Yum China by 112.0% during the fourth quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company's stock worth $374,959,000 after acquiring an additional 4,148,966 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Yum China during the second quarter worth approximately $146,826,000. Principal Financial Group Inc. lifted its holdings in shares of 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 during the last quarter. Finally, Alberta Investment Management Corp bought a new stake in shares of Yum China in the 2nd quarter worth approximately $53,131,000. 85.58% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source