Yum China (NYSE:YUMC) Stock Rating Lowered by Zacks Investment Research

Yum China (NYSE:YUMCGet Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Monday, Zacks.com reports. They presently have a $32.00 target price on the stock. Zacks Investment Research‘s price objective points to a potential downside of 19.68% from the stock’s previous close.

According to Zacks, “Shares of Yum China have underperformed the industry in the past year. The downtrend is likely to continue as the company continues to be hurt by the pandemic. Recently, the company reported first-quarter 2022 results, with earnings missing the Zacks Consensus Estimate. The company noted that the Omicron variant continues to have a severe impact in the second quarter. Economically important regions like Shanghai, Tianjin, Jilin, Suzhou, Shenzhen and Guangzhou have been affected by the Omicron variant. Not only store operations but delivery and supply chain have been hurt by the ever-changing restrictions. In first-quarter 2022, same-store sales dropped 8% year over year. The dismal performance continued in April (preliminary) as same-store sales decreased more than 20% year over year.”

Separately, StockNews.com assumed coverage on shares of Yum China in a research report on Thursday, March 31st. They set a “hold” rating on the stock. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and one has assigned a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $53.97.

Shares of NYSE:YUMC traded up $0.54 during midday trading on Monday, hitting $39.84. 2,804 shares of the stock were exchanged, compared to its average volume of 2,773,861. Yum China has a 52-week low of $33.55 and a 52-week high of $69.67. The business’s fifty day simple moving average is $41.83 and its two-hundred day simple moving average is $47.35. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.80 and a current ratio of 2.05. The company has a market capitalization of $16.88 billion, a PE ratio of 20.04, a P/E/G ratio of 6.61 and a beta of 0.67.

Yum China (NYSE:YUMCGet Rating) last announced its quarterly earnings results on Tuesday, May 3rd. The company reported $0.24 EPS for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.05). Yum China had a return on equity of 5.38% and a net margin of 8.63%. The business had revenue of $2.67 billion for the quarter, compared to the consensus estimate of $2.60 billion. During the same quarter in the prior year, the business earned $0.54 EPS. The firm’s revenue for the quarter was up 4.3% on a year-over-year basis. As a group, equities analysts anticipate that Yum China will post 0.77 EPS for the current year.

Several large investors have recently added to or reduced their stakes in YUMC. Norges Bank bought a new stake in shares of Yum China during the fourth quarter worth $207,251,000. Allspring Global Investments Holdings LLC acquired a new stake in Yum China in the 4th quarter valued at about $203,958,000. Schroder Investment Management Group increased its position in Yum China by 20.9% during the fourth quarter. Schroder Investment Management Group now owns 15,105,830 shares of the company’s stock worth $2,411,100,000 after buying an additional 2,608,921 shares during the period. Mondrian Investment Partners LTD grew its stake in shares of Yum China by 10,461.2% in the 1st quarter. Mondrian Investment Partners LTD now owns 1,868,910 shares of the company’s stock valued at $154,884,000 after purchasing an additional 1,851,214 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Yum China by 4.2% in the third quarter. Invesco Ltd. now owns 40,272,509 shares of the company’s stock valued at $2,340,237,000 after buying an additional 1,619,925 shares in the last quarter. 80.30% 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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