Wall Street Zen Upgrades Yum China (NYSE:YUMC) to “Buy”

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

A number of other brokerages have also weighed in on YUMC. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $58.50 price target on shares of Yum China in a research note on Wednesday, February 4th. Weiss Ratings lowered shares of Yum China from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $63.64 price target on shares of Yum China in a research note on Thursday, February 5th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $59.05.

Yum China Stock Performance

Shares of YUMC opened at $42.51 on Friday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.83 and a current ratio of 1.01. Yum China has a twelve month low of $41.69 and a twelve month high of $58.39. The firm’s 50 day moving average price is $48.01 and its two-hundred day moving average price is $49.36. The firm has a market cap of $14.84 billion, a P/E ratio of 16.29, a PEG ratio of 1.20 and a beta of 0.13.

Yum China (NYSE:YUMC) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $0.87 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.87. Yum China had a net margin of 7.83% and a return on equity of 15.11%. The firm had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.21 billion. During the same quarter in the previous year, the firm posted $0.77 earnings per share. The business’s revenue was up 9.7% on a year-over-year basis. On average, analysts forecast that Yum China will post 2.95 EPS for the current fiscal year.

Hedge Funds Weigh In On Yum China

Several institutional investors and hedge funds have recently modified their holdings of YUMC. Norges Bank acquired a new position in shares of Yum China in the fourth quarter valued at $280,656,000. Mondrian Investment Partners LTD increased its holdings in shares of Yum China by 112.0% in the fourth quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company’s stock valued at $374,959,000 after purchasing an additional 4,148,966 shares during the last quarter. Principal Financial Group Inc. increased its holdings in shares of Yum China by 14.8% in the third quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company’s stock valued at $883,687,000 after purchasing an additional 2,604,480 shares during the last quarter. Hsbc Holdings PLC increased its holdings in shares of Yum China by 132.4% in the first quarter. Hsbc Holdings PLC now owns 1,759,348 shares of the company’s stock valued at $85,827,000 after purchasing an additional 1,002,313 shares during the last quarter. Finally, Temasek Holdings Private Ltd increased its holdings in shares of Yum China by 25.1% in the third quarter. Temasek Holdings Private Ltd now owns 4,654,717 shares of the company’s stock valued at $199,780,000 after purchasing an additional 932,859 shares during the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

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.