Zacks Research Has Pessimistic View of Yum China Q1 Earnings

Yum China Holdings, Inc. (NYSE:YUMC) – Analysts at Zacks Research dropped their Q1 2025 EPS estimates for shares of Yum China in a report issued on Thursday, February 20th. Zacks Research analyst H. Ray now anticipates that the company will post earnings of $0.79 per share for the quarter, down from their previous estimate of $0.83. The consensus estimate for Yum China’s current full-year earnings is $2.54 per share. Zacks Research also issued estimates for Yum China’s Q1 2025 earnings at $0.79 EPS, Q2 2025 earnings at $0.60 EPS, Q2 2025 earnings at $0.60 EPS, Q3 2025 earnings at $0.78 EPS, Q3 2025 earnings at $0.78 EPS, Q4 2025 earnings at $0.36 EPS, Q4 2025 earnings at $0.36 EPS, FY2025 earnings at $2.54 EPS, FY2025 earnings at $2.54 EPS, Q2 2026 earnings at $0.64 EPS, Q2 2026 earnings at $0.64 EPS, Q3 2026 earnings at $0.95 EPS, Q3 2026 earnings at $0.95 EPS, Q4 2026 earnings at $0.42 EPS, FY2026 earnings at $2.91 EPS, FY2026 earnings at $2.91 EPS and FY2027 earnings at $3.33 EPS.

YUMC has been the topic of several other reports. StockNews.com raised shares of Yum China from a “hold” rating to a “buy” rating in a research report on Monday, February 17th. JPMorgan Chase & Co. upgraded shares of Yum China from a “neutral” rating to an “overweight” rating and increased their price objective for the stock from $35.50 to $60.00 in a research note on Tuesday, November 5th. Four analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $49.57.

Yum China Price Performance

NYSE:YUMC opened at $46.82 on Monday. Yum China has a 12-month low of $28.50 and a 12-month high of $52.00. The stock’s 50 day moving average price is $46.68 and its two-hundred day moving average price is $43.84. The company has a quick ratio of 1.15, a current ratio of 1.29 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $17.78 billion, a price-to-earnings ratio of 20.09, a P/E/G ratio of 1.72 and a beta of 0.33.

Yum China (NYSE:YUMC) last released its quarterly earnings data on Thursday, February 6th. The company reported $0.30 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.01). Yum China had a net margin of 8.06% and a return on equity of 13.83%.

Yum China Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 27th. Investors of record on Thursday, March 6th will be paid a $0.24 dividend. This is a positive change from Yum China’s previous quarterly dividend of $0.16. This represents a $0.96 dividend on an annualized basis and a dividend yield of 2.05%. The ex-dividend date is Thursday, March 6th. Yum China’s payout ratio is currently 41.20%.

Insider Buying and Selling at Yum China

In other Yum China news, insider Jeff Kuai sold 3,900 shares of the firm’s stock in a transaction on Monday, February 17th. The stock was sold at an average price of $48.21, for a total transaction of $188,019.00. Following the transaction, the insider now directly owns 56,602 shares in the company, valued at approximately $2,728,782.42. This trade represents a 6.45 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Yum China

A number of hedge funds and other institutional investors have recently made changes to their positions in YUMC. RedJay Asset Management Inc. bought a new position in shares of Yum China in the fourth quarter worth $6,021,000. Mackenzie Financial Corp increased its stake in Yum China by 2.3% in the 4th quarter. Mackenzie Financial Corp now owns 588,561 shares of the company’s stock worth $28,351,000 after purchasing an additional 13,215 shares during the period. GF Fund Management CO. LTD. bought a new stake in Yum China in the 4th quarter worth $6,486,000. Public Employees Retirement System of Ohio grew its position in shares of Yum China by 14.7% in the 4th quarter. Public Employees Retirement System of Ohio now owns 758,657 shares of the company’s stock worth $36,545,000 after buying an additional 97,360 shares during the last quarter. Finally, Vise Technologies Inc. purchased a new position in shares of Yum China during the fourth quarter valued at about $325,000. 85.58% of the stock is owned by hedge funds and other institutional investors.

About Yum China

Yum China Holdings, Inc owns, operates, and franchises restaurants in the People's Republic of China. The company operates through KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services.