Yum China (NYSE:YUMC) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Yum China (NYSE:YUMC) has received an average recommendation of “Moderate Buy” from the four brokerages that are currently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $59.0467.

YUMC has been the subject of several recent analyst reports. Wall Street Zen upgraded Yum China from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. Weiss Ratings restated a “hold (c)” rating on shares of Yum China in a report on Wednesday, January 21st. CLSA reaffirmed an “outperform” rating and set a $55.00 target price on shares of Yum China in a research report 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 report on Wednesday, February 4th. Finally, Jefferies Financial Group reissued a “buy” rating and issued a $63.64 price target on shares of Yum China in a research report on Thursday, February 5th.

Insiders Place Their Bets

In other news, CEO Joey Wat sold 104,000 shares of Yum China stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $55.18, for a total value of $5,738,720.00. Following the transaction, the chief executive officer directly owned 433,306 shares in the company, valued at approximately $23,909,825.08. The trade was a 19.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Xueling Lu sold 23,504 shares of the business’s stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $55.84, for a total value of $1,312,463.36. Following the transaction, the insider directly owned 9,042 shares of the company’s stock, valued at $504,905.28. This represents a 72.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 135,117 shares of company stock valued at $7,479,590 in the last quarter. Insiders own 0.40% of the company’s stock.

Institutional Trading of Yum China

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Compound Planning Inc. grew its stake in shares of Yum China by 26.4% in the fourth quarter. Compound Planning Inc. now owns 13,277 shares of the company’s stock worth $634,000 after acquiring an additional 2,775 shares during the last quarter. Corient Private Wealth LLC increased its stake in Yum China by 22.9% during the fourth quarter. Corient Private Wealth LLC now owns 33,761 shares of the company’s stock valued at $1,608,000 after acquiring an additional 6,297 shares during the period. Vident Advisory LLC raised its holdings in Yum China by 17.6% in the 4th quarter. Vident Advisory LLC now owns 16,745 shares of the company’s stock valued at $799,000 after acquiring an additional 2,512 shares in the last quarter. Beacon Pointe Advisors LLC raised its holdings in Yum China by 15.0% in the 4th quarter. Beacon Pointe Advisors LLC now owns 15,438 shares of the company’s stock valued at $737,000 after acquiring an additional 2,016 shares in the last quarter. Finally, EP Wealth Advisors LLC bought a new position in Yum China in the fourth quarter worth $282,000. Institutional investors and hedge funds own 85.58% of the company’s stock.

Yum China Stock Down 1.0%

YUMC stock opened at $51.88 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.15 and a debt-to-equity ratio of 0.01. Yum China has a 1 year low of $41.00 and a 1 year high of $58.39. The company has a fifty day simple moving average of $51.41 and a 200 day simple moving average of $47.41. The firm has a market cap of $18.32 billion, a PE ratio of 20.67, a PEG ratio of 1.48 and a beta of 0.11.

Yum China (NYSE:YUMC) last posted its 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. Yum China had a net margin of 7.87% and a return on equity of 14.65%. The firm had revenue of $2.82 billion for the quarter, compared to the consensus estimate of $2.72 billion. During the same period in the prior year, the business posted $0.30 earnings per share. The business’s quarterly revenue was up 8.8% on a year-over-year basis. Sell-side analysts anticipate that Yum China will post 2.54 EPS for the current fiscal year.

Yum China Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be issued a $0.29 dividend. This is a boost from Yum China’s previous quarterly dividend of $0.24. The ex-dividend date is Wednesday, March 4th. This represents a $1.16 annualized dividend and a yield of 2.2%. Yum China’s payout ratio is 46.22%.

Yum China declared that its Board of Directors has approved a stock repurchase program on Friday, December 12th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to buy up to 5.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

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.