Yum China (NYSE:YUMC) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Yum China received an average analyst rating of “Moderate Buy” from four brokerages, with three buy ratings and one hold. The average 1-year price target is about $59.05.
• The company reported quarterly earnings of $0.87 per share, matching estimates, while revenue came in at $3.27 billion, ahead of expectations and up 9.7% year over year.
• Yum China also announced a quarterly dividend of $0.29 per share, payable June 17, implying an annualized yield of about 2.6%.

Shares of Yum China (NYSE:YUMC - Get Free Report) have been assigned an average rating of "Moderate Buy" from the four brokerages that are presently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $59.0467.

YUMC has been the subject of a number of recent analyst reports. Wall Street Zen lowered Yum China from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Weiss Ratings raised shares of Yum China from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, May 1st. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $58.50 price target on shares of Yum China in a research report on Wednesday, February 4th. Finally, Jefferies Financial Group restated a "buy" rating and issued a $63.64 price objective on shares of Yum China in a report on Thursday, February 5th.

Insider Activity at Yum China

In related news, insider Xueling Lu sold 23,504 shares of the company's stock in a transaction on 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 owned 9,042 shares in the company, valued at approximately $504,905.28. This represents a 72.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.44% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Ashoka WhiteOak Capital Pte Ltd grew its stake in shares of Yum China by 0.7% during the 4th quarter. Ashoka WhiteOak Capital Pte Ltd now owns 28,350 shares of the company's stock valued at $1,342,000 after acquiring an additional 200 shares during the period. Glenview Trust Co raised its stake in Yum China by 4.3% during the fourth quarter. Glenview Trust Co now owns 4,904 shares of the company's stock valued at $234,000 after purchasing an additional 200 shares in the last quarter. Truist Financial Corp lifted its holdings in shares of Yum China by 0.3% in the 4th quarter. Truist Financial Corp now owns 68,009 shares of the company's stock valued at $3,247,000 after acquiring an additional 211 shares during the last quarter. Biltmore Family Office LLC lifted its stake in shares of Yum China by 3.1% in the 4th quarter. Biltmore Family Office LLC now owns 7,111 shares of the company's stock valued at $339,000 after purchasing an additional 216 shares during the last quarter. Finally, Williams Jones Wealth Management LLC. boosted its stake in Yum China by 2.7% during the fourth quarter. Williams Jones Wealth Management LLC. now owns 8,258 shares of the company's stock worth $394,000 after buying an additional 221 shares during the period. Hedge funds and other institutional investors own 85.58% of the company's stock.

Yum China Trading Up 0.1%

Shares of YUMC stock opened at $45.39 on Thursday. The business has a 50-day moving average of $49.30 and a 200 day moving average of $49.38. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.01 and a quick ratio of 0.83. Yum China has a 1-year low of $41.69 and a 1-year high of $58.39. The stock has a market capitalization of $15.85 billion, a PE ratio of 17.39, a P/E/G ratio of 1.27 and a beta of 0.13.

Yum China (NYSE:YUMC - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $0.87 earnings per share for the quarter, meeting the consensus estimate of $0.87. The firm had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.21 billion. Yum China had a return on equity of 15.11% and a net margin of 7.83%.The business's revenue was up 9.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.77 earnings per share. As a group, sell-side analysts anticipate that Yum China will post 2.95 earnings per share for the current year.

Yum China Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 17th. Stockholders of record on Wednesday, May 27th will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Wednesday, May 27th. Yum China's payout ratio is presently 44.44%.

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.

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