Yum China (NYSE:YUMC) Reaches New 1-Year High Following Strong Earnings

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

The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.05. The company had revenue of $2.82 billion during 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 firm’s quarterly revenue was up 8.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.30 EPS.

Yum China Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be paid a $0.29 dividend. This represents a $1.16 annualized dividend and a yield of 2.0%. This is an increase from Yum China’s previous quarterly dividend of $0.24. The ex-dividend date of this dividend is Wednesday, March 4th. Yum China’s payout ratio is currently 38.25%.

Yum China declared that its Board of Directors has initiated 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 shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several brokerages have weighed in on YUMC. CLSA reiterated an “outperform” rating and issued a $55.00 target price on shares of Yum China in a report on Tuesday, November 25th. The Goldman Sachs Group restated a “buy” rating and issued a $58.50 price objective on shares of Yum China in a report on Wednesday. Jefferies Financial Group reiterated a “buy” rating and set a $63.64 target price on shares of Yum China in a report on Thursday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $59.05.

Insider Activity

In other news, insider Jerry Ding sold 3,000 shares of Yum China stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $55.14, for a total value of $165,420.00. Following the transaction, the insider owned 915 shares of the company’s stock, valued at $50,453.10. The trade was a 76.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jeff Kuai sold 5,167 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $48.00, for a total transaction of $248,016.00. Following the transaction, the insider owned 56,602 shares of the company’s stock, valued at approximately $2,716,896. This trade represents a 8.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 21,242 shares of company stock valued at $1,043,817. Company insiders own 0.40% of the company’s stock.

Institutional Trading of Yum China

Several hedge funds and other institutional investors have recently made changes to their positions in YUMC. Ashoka WhiteOak Capital Pte Ltd increased its position in Yum China by 0.7% during the 4th quarter. Ashoka WhiteOak Capital Pte Ltd now owns 28,350 shares of the company’s stock valued at $1,342,000 after buying an additional 200 shares in the last quarter. Truist Financial Corp increased its holdings in shares of Yum China by 0.3% during the fourth quarter. Truist Financial Corp now owns 68,009 shares of the company’s stock valued at $3,247,000 after acquiring an additional 211 shares in the last quarter. Biltmore Family Office LLC raised its position in shares of Yum China by 3.1% in the 4th quarter. Biltmore Family Office LLC now owns 7,111 shares of the company’s stock valued at $339,000 after purchasing an additional 216 shares during the last quarter. Turning Point Benefit Group Inc. boosted its stake in Yum China by 13.9% in the 4th quarter. Turning Point Benefit Group Inc. now owns 1,824 shares of the company’s stock worth $87,000 after purchasing an additional 222 shares in the last quarter. Finally, Concurrent Investment Advisors LLC boosted its stake in Yum China by 4.7% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 5,106 shares of the company’s stock worth $228,000 after purchasing an additional 230 shares in the last quarter. Hedge funds and other institutional investors own 85.58% of the company’s stock.

Yum China Stock Performance

The company has a current ratio of 1.32, a quick ratio of 1.15 and a debt-to-equity ratio of 0.01. The company has a market cap of $20.92 billion, a PE ratio of 23.06, a P/E/G ratio of 1.58 and a beta of 0.14. The firm’s 50-day simple moving average is $48.61 and its two-hundred day simple moving average is $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.