Yum China (NYSE:YUMC) Cut to Hold at Wall Street Zen
by Renee Jackson · The Cerbat GemWall Street Zen downgraded shares of Yum China (NYSE:YUMC – Free Report) from a buy rating to a hold rating in a research note published on Sunday.
YUMC has been the topic of several other research reports. The Goldman Sachs Group reiterated a “buy” rating and set a $59.00 price target on shares of Yum China in a research note on Thursday, July 30th. Weiss Ratings cut Yum China from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, May 26th. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $59.21.
Read Our Latest Report on YUMC
Yum China Price Performance
Shares of YUMC stock opened at $47.53 on Friday. The company has a current ratio of 1.01, a quick ratio of 0.83 and a debt-to-equity ratio of 0.01. The stock has a fifty day simple moving average of $43.76 and a two-hundred day simple moving average of $47.96. Yum China has a twelve month low of $40.15 and a twelve month high of $58.39. The stock has a market capitalization of $16.59 billion, a price-to-earnings ratio of 17.41, a P/E/G ratio of 1.27 and a beta of 0.09.
Yum China (NYSE:YUMC – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.67 by $0.03. The firm had revenue of $3.14 billion during the quarter, compared to analysts’ expectations of $3.05 billion. Yum China had a return on equity of 15.73% and a net margin of 7.84%.The firm’s quarterly revenue was up 12.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.58 EPS. On average, analysts predict that Yum China will post 2.95 EPS for the current fiscal year.
Yum China Cuts Dividend
The business also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, August 27th will be paid a dividend of $0.075 per share. The ex-dividend date of this dividend is Thursday, August 27th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.6%. Yum China’s payout ratio is currently 42.49%.
Institutional Trading of Yum China
Several large investors have recently made changes to their positions in YUMC. Principal Financial Group Inc. increased its stake in shares of Yum China by 8.9% during the fourth quarter. Principal Financial Group Inc. now owns 21,957,111 shares of the company’s stock worth $1,039,945,000 after buying an additional 1,787,450 shares during the period. Massachusetts Financial Services Co. MA lifted its stake in Yum China by 5.0% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 4,971,031 shares of the company’s stock worth $237,317,000 after acquiring an additional 236,736 shares during the last quarter. Teachers Retirement System of The State of Kentucky lifted its stake in Yum China by 42.4% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 752,360 shares of the company’s stock worth $36,701,000 after acquiring an additional 224,060 shares during the last quarter. Mondrian Investment Partners LTD grew its holdings in Yum China by 112.0% during the 4th quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company’s stock worth $374,959,000 after acquiring an additional 4,148,966 shares in the last quarter. Finally, M&T Bank Corp grew its holdings in Yum China by 271.1% during the 4th quarter. M&T Bank Corp now owns 171,689 shares of the company’s stock worth $8,196,000 after acquiring an additional 125,420 shares in the last quarter. 85.58% of the stock is currently 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.