Yum China (NYSE:YUMC) Rating Increased to Hold at Zacks Investment Research

Yum China (NYSE:YUMCGet Rating) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Tuesday, Zacks.com reports. The firm presently has a $43.00 price target on the stock. Zacks Investment Research‘s price objective would indicate a potential upside of 2.43% from the stock’s current price.

According to Zacks, “Although, shares of Yum China have underperformed the industry in the past year, emphasis on menu innovation, unit expansion and digitalization efforts are likely to aid the company in the upcoming periods. The company is gradually shifting toward digital and content marketing to expand customer base. Also, focus on logistics center openings and supply chain security bode well. With a focus on improving customer experience and operating efficiency, the company stated continued investments in this direction. The company has set aside $1 billion in IT and digital-related investments over the next few years.  However, coronavirus related woes persists. This along with costs stemming from wage inflation, promotion, packaging upgrades, menu innovation and technological novelty remain concerns. Of late, earnings estimates for 2022 have declined.”

Separately, StockNews.com assumed coverage on Yum China in a report on Thursday, March 31st. They set a “hold” rating for the company. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $73.98.

Shares of YUMC stock opened at $41.98 on Tuesday. The stock has a market cap of $17.87 billion, a PE ratio of 18.33, a price-to-earnings-growth ratio of 3.86 and a beta of 0.71. The stock has a 50-day moving average of $46.20 and a 200-day moving average of $50.35. Yum China has a one year low of $33.55 and a one year high of $69.67.

Yum China (NYSE:YUMCGet Rating) last issued its quarterly earnings results on Tuesday, February 8th. The company reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.17 by ($0.14). The business had revenue of $2.29 billion for the quarter, compared to the consensus estimate of $2.38 billion. Yum China had a return on equity of 10.35% and a net margin of 10.05%. Yum China’s revenue was up 1.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.35 earnings per share. Analysts anticipate that Yum China will post 1.4 EPS for the current year.

A number of institutional investors and hedge funds have recently modified their holdings of YUMC. JFS Wealth Advisors LLC bought a new position in Yum China in the 3rd quarter valued at $27,000. Cornerstone Advisory LLC bought a new position in Yum China in the 4th quarter worth about $25,000. Mystic Asset Management Inc. bought a new position in Yum China in the 4th quarter worth about $27,000. Focused Wealth Management Inc bought a new position in Yum China in the 4th quarter worth about $31,000. Finally, Ahrens Investment Partners LLC bought a new position in shares of Yum China during the 4th quarter valued at about $33,000. 79.89% of the stock is currently owned by hedge funds and other institutional investors.

About Yum China (Get Rating)

Yum China Holdings, Inc owns, operates, and franchises restaurants in China. The company operates through two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Little Sheep, Huang Ji Huang, Lavazza, COFFii & JOY, Taco Bell, and East Dawning brands, which specialize in chicken, pizza, hot pot cooking, simmer pot, Italian coffee, specialty coffee, Mexican-style food, and Chinese food categories.

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