Yum China (NYSE:YUMC) Upgraded at Wall Street Zen

Yum China (NYSE:YUMC) was upgraded by Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued on Saturday.

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

Yum China Price Performance

Shares of YUMC stock opened at $57.87 on Friday. The firm has a fifty day moving average of $48.61 and a two-hundred day moving average of $46.22. The firm has a market cap of $20.92 billion, a P/E ratio of 23.06, a P/E/G ratio of 1.58 and a beta of 0.14. Yum China has a 1-year low of $41.00 and a 1-year high of $58.39. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.32 and a quick ratio of 1.15.

Yum China (NYSE:YUMC) last issued its quarterly earnings results on Wednesday, February 4th. The company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.35 by $0.05. The business had revenue of $2.82 billion for the quarter, compared to analysts’ expectations of $2.72 billion. Yum China had a net margin of 7.87% and a return on equity of 14.46%. The company’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.30 earnings per share. As a group, research analysts anticipate that Yum China will post 2.54 earnings per share for the current fiscal year.

Yum China announced that its Board of Directors has authorized a share buyback plan on Friday, December 12th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to repurchase up to 5.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Yum China

In other news, insider Warton Wang sold 8,187 shares of the business’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $48.28, for a total transaction of $395,268.36. Following the sale, the insider directly owned 46,847 shares of the company’s stock, valued at $2,261,773.16. The trade was a 14.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jeff Kuai sold 5,167 shares of the 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 completion of the transaction, the insider owned 56,602 shares of the company’s stock, valued at $2,716,896. This trade represents a 8.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 21,242 shares of company stock valued at $1,043,817 over the last quarter. Company insiders own 0.40% of the company’s stock.

Institutional Investors Weigh In On Yum China

Several hedge funds have recently bought and sold shares of the business. Duncker Streett & Co. Inc. acquired a new stake in Yum China in the fourth quarter valued at approximately $26,000. Elyxium Wealth LLC acquired a new stake in shares of Yum China in the 4th quarter valued at $27,000. Jackson Grant Investment Advisers Inc. boosted its holdings in Yum China by 526.3% in the third quarter. Jackson Grant Investment Advisers Inc. now owns 595 shares of the company’s stock worth $26,000 after purchasing an additional 500 shares in the last quarter. Cresta Advisors Ltd. bought a new stake in Yum China in the fourth quarter worth $28,000. Finally, Stone House Investment Management LLC increased its position in Yum China by 106.2% during the fourth quarter. Stone House Investment Management LLC now owns 629 shares of the company’s stock worth $30,000 after buying an additional 324 shares during the last quarter. 85.58% of the stock is owned by hedge funds and other institutional investors.

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.