Yum China (NYSE:YUMC) Receives $59.05 Average Target Price from Analysts

Yum China (NYSE:YUMC) has been assigned an average rating of “Moderate Buy” from the four analysts that are covering the firm, MarketBeat.com 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 analysts that have updated their coverage on the stock in the last year is $59.0467.

A number of equities research analysts have weighed in on the company. The Goldman Sachs Group reaffirmed a “buy” rating and set a $58.50 price objective on shares of Yum China in a report on Wednesday, February 4th. Weiss Ratings reiterated a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. Wall Street Zen raised shares of Yum China from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Jefferies Financial Group restated a “buy” rating and set a $63.64 price target on shares of Yum China in a research report on Thursday, February 5th. Finally, CLSA restated an “outperform” rating and set a $55.00 target price on shares of Yum China in a report on Tuesday, November 25th.

Yum China Trading Up 3.0%

Shares of YUMC opened at $53.39 on Friday. Yum China has a 12-month low of $41.00 and a 12-month high of $58.39. The firm has a market capitalization of $18.85 billion, a price-to-earnings ratio of 21.27, a P/E/G ratio of 1.47 and a beta of 0.11. The stock’s 50-day moving average price is $51.50 and its 200 day moving average price is $47.51. The company has a quick ratio of 0.85, a current ratio of 1.05 and a debt-to-equity ratio of 0.01.

Yum China (NYSE:YUMC) last issued 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 return on equity of 14.65% and a net margin of 7.87%.The firm had revenue of $2.82 billion during the quarter, compared to analysts’ expectations of $2.72 billion. During the same period last year, the business earned $0.30 earnings per share. Yum China’s quarterly revenue was up 8.8% compared to the same quarter last year. As a group, research analysts predict that Yum China will post 2.54 earnings per share for the current year.

Yum China announced that its Board of Directors has authorized a share repurchase plan on Friday, December 12th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to buy up to 5.8% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Yum China Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 2.2%. 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 46.22%.

Insider Buying and Selling at Yum China

In other news, insider Xueling Lu sold 23,504 shares of Yum China stock in a transaction on 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 completion of the sale, the insider directly owned 9,042 shares of the company’s stock, valued at approximately $504,905.28. This trade represents a 72.22% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jerry Ding sold 3,000 shares of the company’s stock in a transaction 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 directly owned 915 shares in the company, valued at $50,453.10. This trade represents a 76.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 135,117 shares of company stock worth $7,479,590. Insiders own 0.40% of the company’s stock.

Institutional Trading of Yum China

Institutional investors and hedge funds have recently made changes to their positions in the business. Jackson Grant Investment Advisers Inc. grew its stake in shares of Yum China by 526.3% during the third quarter. Jackson Grant Investment Advisers Inc. now owns 595 shares of the company’s stock worth $26,000 after purchasing an additional 500 shares during the period. Duncker Streett & Co. Inc. acquired a new position in shares of Yum China during the 4th quarter worth about $26,000. Elyxium Wealth LLC bought a new stake in shares of Yum China in the 4th quarter valued at about $27,000. Quent Capital LLC acquired a new stake in shares of Yum China in the 3rd quarter valued at approximately $28,000. Finally, Cresta Advisors Ltd. bought a new position in Yum China during the 4th quarter worth approximately $28,000. Institutional investors own 85.58% of the company’s stock.

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.