Zacks Research Brokers Lift Earnings Estimates for Yum China

Key Points

• Zacks Research raised Yum China’s earnings outlook, increasing its FY2026 EPS estimate to $2.92 and projecting $3.42 for FY2027 and $4.03 for FY2028. FY2026 remains slightly below the $2.95 consensus estimate.
• Yum China’s latest quarterly results exceeded expectations, with EPS of $0.70 versus $0.67 expected and revenue of $3.14 billion versus $3.05 billion forecast; revenue grew 12.6% year over year.
• The company declared a quarterly dividend of $0.29 per share, representing a 2.5% yield, while analysts maintain an overall “Moderate Buy” rating and a consensus price target of $59.21. An insider’s sale of roughly $696,000 in shares was a modest negative signal.

Yum China (NYSE:YUMC - Free Report) - Zacks Research increased their FY2026 earnings per share estimates for Yum China in a research report issued to clients and investors on Thursday, August 13th. Zacks Research analyst Team now anticipates that the company will post earnings of $2.92 per share for the year, up from their previous estimate of $2.91. The consensus estimate for Yum China's current full-year earnings is $2.95 per share. Zacks Research also issued estimates for Yum China's Q1 2027 earnings at $0.99 EPS, Q2 2027 earnings at $0.78 EPS, Q3 2027 earnings at $1.11 EPS, Q4 2027 earnings at $0.54 EPS, FY2027 earnings at $3.42 EPS, Q1 2028 earnings at $1.11 EPS and FY2028 earnings at $4.03 EPS.

Several other analysts have also commented on the stock. Wall Street Zen lowered shares of Yum China from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. The Goldman Sachs Group reiterated a "buy" rating and issued a $59.00 price objective on shares of Yum China in a research note on Thursday, July 30th. Finally, Weiss Ratings lowered Yum China from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, May 26th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $59.21.

Yum China Price Performance

Shares of NYSE:YUMC opened at $47.25 on Friday. The company has a market capitalization of $16.18 billion, a P/E ratio of 17.31, a price-to-earnings-growth ratio of 1.26 and a beta of 0.09. The company's 50-day moving average is $43.95 and its 200 day moving average is $47.93. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.83 and a current ratio of 1.01. Yum China has a fifty-two week low of $40.15 and a fifty-two week high of $58.39.

Yum China (NYSE:YUMC - Get Free Report) last announced 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 firm had revenue of $3.14 billion during the quarter, compared to the consensus estimate of $3.05 billion. Yum China had a return on equity of 15.73% and a net margin of 7.84%.The business's revenue for the quarter was up 12.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.58 EPS.

Yum China Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be given a $0.29 dividend. The ex-dividend date of this dividend is Thursday, August 27th. This represents a $1.16 annualized dividend and a dividend yield of 2.5%. Yum China's payout ratio is 42.49%.

Insider Activity at Yum China

In related news, insider Jeff Kuai sold 14,586 shares of the company's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $47.72, for a total transaction of $696,043.92. Following the sale, the insider directly owned 63,541 shares in the company, valued at approximately $3,032,176.52. This represents a 18.67% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Yum China

A number of large investors have recently modified their holdings of YUMC. Aberdeen Wealth Management LLC purchased a new position in shares of Yum China during the 2nd quarter valued at $33,000. Cibc World Market Inc. purchased a new position in Yum China during the second quarter worth about $9,985,000. OMERS ADMINISTRATION Corp purchased a new position in Yum China during the second quarter worth about $1,333,000. Sanctuary Advisors LLC bought a new position in Yum China in the 2nd quarter worth about $657,000. Finally, Polymer Capital Management HK LTD bought a new position in Yum China in the 2nd quarter worth about $1,392,000. 85.58% of the stock is currently owned by institutional investors.

Key Headlines Impacting Yum China

Here are the key news stories impacting Yum China this week:

• Positive Sentiment: Higher forward earnings expectations: Zacks Research increased its FY2026 EPS estimate to $2.92 from $2.91, FY2027 to $3.42 from $3.32, and FY2028 to $4.03 from $3.81. It also raised estimates for Q1 2027, Q3 2027, Q4 2027 and Q1 2028. These revisions point to stronger anticipated earnings growth for Yum China’s KFC, Pizza Hut and other restaurant operations.
• Positive Sentiment: Recent operating momentum supports the revisions: Yum China’s latest quarterly results exceeded expectations, with EPS of $0.70 versus a $0.67 consensus estimate and revenue of $3.14 billion versus forecasts of $3.05 billion. Revenue increased 12.6% year over year, providing a fundamental basis for the more optimistic outlook.
• Positive Sentiment: Dividend and analyst support: The company declared a quarterly dividend of $0.29 per share, equivalent to $1.16 annually and a yield of roughly 2.5%. Goldman Sachs has maintained a Buy rating with a $59 price target, while the broader analyst consensus remains “Moderate Buy” with a $59.21 target.
• Neutral Sentiment: Restaurant industry trends remain supportive: Zacks highlighted Yum China among restaurant stocks benefiting from steady industry sales, value-oriented dining and changing consumer demand. This offers a favorable sector backdrop but is not a company-specific catalyst. Restaurant industry growth article
• Negative Sentiment: Insider selling: Insider Jeff Kuai sold 14,586 shares for approximately $696,000, reducing his direct holdings by 18.67%. While the sale may reflect personal financial considerations, it can weigh modestly on sentiment because it signals reduced insider ownership. Yum China insider sale article

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.

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