Yum China (NYSE:YUMC) Cut to “Hold” at Wall Street Zen

Yum China (NYSE:YUMC) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Saturday.

Separately, Weiss Ratings downgraded shares of Yum China from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, May 26th. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $59.05.

Yum China Stock Performance

Yum China stock opened at $43.92 on Friday. The stock has a market cap of $15.34 billion, a price-to-earnings ratio of 16.83, a PEG ratio of 1.24 and a beta of 0.10. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.83 and a current ratio of 1.01. The stock’s 50 day simple moving average is $43.38 and its two-hundred day simple moving average is $48.17. Yum China has a fifty-two week low of $40.15 and a fifty-two week high of $58.39.

Yum China (NYSE:YUMC) last released its quarterly earnings results on Wednesday, April 29th. The company reported $0.87 earnings per share for the quarter, meeting the consensus estimate of $0.87. The company had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.21 billion. Yum China had a return on equity of 15.11% and a net margin of 7.83%.The firm’s revenue was up 9.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.77 earnings per share. As a group, analysts expect that Yum China will post 2.94 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Principal Financial Group Inc. grew its position in Yum China by 3.0% in the 1st quarter. Principal Financial Group Inc. now owns 22,606,740 shares of the company’s stock worth $1,111,135,000 after purchasing an additional 649,629 shares during the period. Royal Bank of Canada raised its stake in Yum China by 1.5% during the 4th quarter. Royal Bank of Canada now owns 11,135,203 shares of the company’s stock valued at $531,593,000 after buying an additional 167,868 shares during the last quarter. Dodge & Cox lifted its holdings in shares of Yum China by 0.4% during the 4th quarter. Dodge & Cox now owns 8,553,962 shares of the company’s stock valued at $408,366,000 after buying an additional 33,100 shares during the period. Mondrian Investment Partners LTD boosted its stake in shares of Yum China by 112.0% in the 4th quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company’s stock worth $374,959,000 after buying an additional 4,148,966 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Yum China in the 4th quarter worth $280,656,000. Institutional investors own 85.58% of the company’s stock.

About Yum China

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.