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

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

YUMC has been the subject of a number of recent analyst reports. Wall Street Zen raised Yum China from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. The Goldman Sachs Group reiterated a “buy” rating and set a $58.50 target price on shares of Yum China in a research report on Wednesday, February 4th. Jefferies Financial Group restated a “buy” rating and issued a $63.64 price target on shares of Yum China in a report on Thursday, February 5th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a research note on Wednesday, January 21st.

Insiders Place Their Bets

In other Yum China news, insider Xueling Lu sold 23,504 shares of the stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $55.84, for a total transaction of $1,312,463.36. Following the transaction, the insider owned 9,042 shares of the company’s stock, valued at $504,905.28. This trade represents a 72.22% 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, CEO Joey Wat sold 104,000 shares of Yum China stock in a transaction on Friday, February 13th. The shares were sold at an average price of $55.18, for a total transaction of $5,738,720.00. Following the completion of the transaction, the chief executive officer owned 433,306 shares in the company, valued at approximately $23,909,825.08. This trade represents a 19.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 135,117 shares of company stock valued at $7,479,590 over the last quarter. Company insiders own 0.40% of the company’s stock.

Institutional Investors Weigh In On Yum China

A number of institutional investors have recently added to or reduced their stakes in YUMC. Focus Partners Wealth lifted its stake in shares of Yum China by 13.8% in the 1st quarter. Focus Partners Wealth now owns 21,289 shares of the company’s stock valued at $1,108,000 after purchasing an additional 2,582 shares in the last quarter. Strs Ohio acquired a new stake in Yum China during the 1st quarter worth approximately $99,000. Advisors Asset Management Inc. raised its holdings in Yum China by 4.4% in the second quarter. Advisors Asset Management Inc. now owns 13,089 shares of the company’s stock valued at $585,000 after buying an additional 548 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in Yum China by 9.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 12,157 shares of the company’s stock valued at $544,000 after buying an additional 1,059 shares during the period. Finally, Scotia Capital Inc. lifted its position in Yum China by 11.3% during the second quarter. Scotia Capital Inc. now owns 11,485 shares of the company’s stock valued at $513,000 after buying an additional 1,166 shares in the last quarter. Hedge funds and other institutional investors own 85.58% of the company’s stock.

Yum China Stock Performance

Shares of YUMC opened at $48.80 on Wednesday. Yum China has a 1 year low of $41.00 and a 1 year high of $58.39. The company’s 50 day simple moving average is $52.81 and its 200 day simple moving average is $48.30. The company has a market capitalization of $17.23 billion, a price-to-earnings ratio of 19.44, a PEG ratio of 1.37 and a beta of 0.11. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.85 and a current ratio of 1.05.

Yum China (NYSE:YUMC) last issued its quarterly earnings results on Wednesday, February 4th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.05. Yum China had a return on equity of 14.65% and a net margin of 7.87%.The company had revenue of $2.82 billion during the quarter, compared to the consensus estimate of $2.72 billion. During the same period in the previous year, the firm posted $0.30 EPS. Yum China’s revenue was up 8.8% on a year-over-year basis. On average, sell-side analysts predict that Yum China will post 2.54 EPS for the current year.

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

Yum China Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th were issued a $0.29 dividend. The ex-dividend date was Wednesday, March 4th. This is a positive change from Yum China’s previous quarterly dividend of $0.24. This represents a $1.16 dividend on an annualized basis and a yield of 2.4%. Yum China’s payout ratio is presently 46.22%.

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.