Yum China (NYSE:YUMC) Hits New 1-Year High on Strong Earnings

Shares of Yum China (NYSE:YUMC) hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $55.08 and last traded at $55.04, with a volume of 541203 shares changing hands. The stock had previously closed at $53.14.

The company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.05. Yum China had a net margin of 7.87% and a return on equity of 14.46%. The firm had revenue of $2.82 billion during the quarter, compared to the consensus estimate of $2.72 billion. During the same quarter last year, the firm earned $0.30 EPS. The firm’s revenue for the quarter was up 8.8% compared to the same quarter last year.

Yum China Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be given a dividend of $0.29 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $1.16 annualized dividend and a dividend yield of 2.1%. This is an increase from Yum China’s previous quarterly dividend of $0.24. Yum China’s dividend payout ratio is presently 38.25%.

Yum China announced that its board has authorized a stock buyback plan on Friday, December 12th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Yum China News Roundup

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

• Positive Sentiment: Q4 beat — Yum China reported $0.40 EPS vs. $0.35 expected and revenue of $2.82B (vs. $2.72B est.), with revenue up ~8.8% year‑over‑year and improving net margins, driving investor optimism. Yum China Q4 Earnings & Revenues Top Estimates
• Positive Sentiment: Expansion & franchise mix — management outlined a plan to add >1,900 new stores in 2026 and push franchise mix to ~40–50%, which supports faster unit growth and margin leverage. Yum China outlines over 1,900 new stores
• Positive Sentiment: Dividend hike — the company raised its quarterly dividend to $0.29 (a ~20.8% increase), boosting the cash-return profile and appealing to income investors. Yum China Declares USD 0.29 Quarterly Dividend
• Neutral Sentiment: Delivery & margin tailwinds — several writeups and the earnings presentation note a “delivery boom” that helped profitability this quarter; watch sustainability of those margins. Yum China Lifts Dividend After Delivery Boom
• Neutral Sentiment: Momentum coverage — several analyst/market‑style pieces (Zacks, Seeking Alpha) highlight YUMC as a momentum name based on recent price action and style scores; useful for sentiment tracking but not new fundamental data. Momentum coverage
• Negative Sentiment: Valuation & reassessment risk — a recent commentary asks whether investors should reassess YUMC after the run-up; with the stock near its 12‑month high and a P/E ~21, further upside may hinge on execution and sustained margin gains. Is It Time To Reassess Yum China?

Analyst Upgrades and Downgrades

YUMC has been the topic of several recent analyst reports. The Goldman Sachs Group reissued a “buy” rating and issued a $58.50 target price on shares of Yum China in a research note on Wednesday. Weiss Ratings reissued a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. CLSA reissued an “outperform” rating and issued a $55.00 price objective on shares of Yum China in a research note on Tuesday, November 25th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and set a $63.64 target price on shares of Yum China in a research note on Thursday. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Yum China presently has an average rating of “Moderate Buy” and an average target price of $59.05.

Insiders Place Their Bets

In related news, insider Duoduo (Howard) Huang sold 4,888 shares of the stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $48.10, for a total value of $235,112.80. Following the transaction, the insider owned 22,510 shares of the company’s stock, valued at $1,082,731. This represents a 17.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jeff Kuai sold 5,167 shares of Yum China stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $48.00, for a total value of $248,016.00. Following the sale, the insider directly owned 56,602 shares of the company’s stock, valued at approximately $2,716,896. This trade represents a 8.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 18,242 shares of company stock worth $878,397 in the last three months. Corporate insiders own 0.40% of the company’s stock.

Hedge Funds Weigh In On Yum China

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. US Bancorp DE raised its position in shares of Yum China by 21.7% in the 2nd quarter. US Bancorp DE now owns 32,088 shares of the company’s stock valued at $1,435,000 after purchasing an additional 5,723 shares during the last quarter. Broad Peak Investment Advisers Pte Ltd acquired a new position in Yum China during the 3rd quarter valued at approximately $27,679,000. Massachusetts Financial Services Co. MA raised its holdings in shares of Yum China by 14.3% in the third quarter. Massachusetts Financial Services Co. MA now owns 4,734,295 shares of the company’s stock worth $203,196,000 after buying an additional 591,251 shares during the last quarter. Pictet North America Advisors SA raised its holdings in shares of Yum China by 4.9% in the third quarter. Pictet North America Advisors SA now owns 497,944 shares of the company’s stock worth $21,299,000 after buying an additional 23,096 shares during the last quarter. Finally, Nordea Investment Management AB lifted its stake in shares of Yum China by 1.6% during the second quarter. Nordea Investment Management AB now owns 1,026,244 shares of the company’s stock worth $45,740,000 after buying an additional 15,896 shares during the period. Institutional investors own 85.58% of the company’s stock.

Yum China Stock Up 4.8%

The company has a debt-to-equity ratio of 0.01, a current ratio of 1.32 and a quick ratio of 1.15. The business’s fifty day moving average price is $48.42 and its two-hundred day moving average price is $46.15. The stock has a market capitalization of $20.13 billion, a PE ratio of 22.19, a price-to-earnings-growth ratio of 1.70 and a beta of 0.14.

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.