Yum China (NYSE:YUMC) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of Yum China (NYSE:YUMC) from a hold rating to a buy rating in a research report sent to investors on Saturday morning.

Several other brokerages also recently issued reports on YUMC. Weiss Ratings downgraded shares of Yum China from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, May 26th. The Goldman Sachs Group reissued a “buy” rating and set a $59.00 price objective on shares of Yum China in a report on Thursday. Three 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 company has an average rating of “Moderate Buy” and an average target price of $59.21.

Yum China Trading Up 0.4%

Shares of Yum China stock opened at $48.38 on Friday. The firm has a market capitalization of $16.89 billion, a PE ratio of 17.72, a price-to-earnings-growth ratio of 1.27 and a beta of 0.09. 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 firm’s 50 day moving average is $43.22 and its 200 day moving average is $47.95. Yum China has a 1 year low of $40.15 and a 1 year high of $58.39.

Yum China (NYSE:YUMC) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.67 by $0.03. Yum China had a net margin of 7.84% and a return on equity of 15.73%. The business had revenue of $3.14 billion during the quarter, compared to the consensus estimate of $3.05 billion. During the same quarter in the prior year, the firm earned $0.58 EPS. The firm’s revenue was up 12.6% compared to the same quarter last year. Equities research analysts forecast that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, August 27th will be given a dividend of $0.075 per share. The ex-dividend date is Thursday, August 27th. This represents a $0.30 annualized dividend and a yield of 0.6%. Yum China’s dividend payout ratio (DPR) is currently 42.49%.

Hedge Funds Weigh In On Yum China

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Principal Financial Group Inc. boosted its position in shares of Yum China by 8.9% during the 4th quarter. Principal Financial Group Inc. now owns 21,957,111 shares of the company’s stock worth $1,039,945,000 after purchasing an additional 1,787,450 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in shares of Yum China by 5.0% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 4,971,031 shares of the company’s stock worth $237,317,000 after purchasing an additional 236,736 shares in the last quarter. Mondrian Investment Partners LTD lifted its holdings in shares of Yum China by 112.0% in the 4th quarter. Mondrian Investment Partners LTD now owns 7,854,198 shares of the company’s stock worth $374,959,000 after purchasing an additional 4,148,966 shares in the last quarter. Teachers Retirement System of The State of Kentucky grew its position in Yum China by 42.4% in the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 752,360 shares of the company’s stock valued at $36,701,000 after purchasing an additional 224,060 shares during the period. Finally, M&T Bank Corp increased its stake in Yum China by 271.1% during the 4th quarter. M&T Bank Corp now owns 171,689 shares of the company’s stock valued at $8,196,000 after purchasing an additional 125,420 shares in the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

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.