Yum China’s (YUMC) Hold Rating Reaffirmed at Zacks Investment Research

Yum China (NYSE:YUMC)‘s stock had its “hold” rating reissued by Zacks Investment Research in a research note issued to investors on Saturday.

According to Zacks, “Shares of Yum China have outperformed the industry in the past two years. We expect the company to remain on a growth trajectory after its third-quarter 2018 earnings surpassed the Zacks Consensus Estimate. The bottom line also increased 19% from the year-ago quarter on higher revenues. The company’s strong brand portfolio not only gives it a competitive edge but also posits it as the largest restaurant company in China. Its KFC division performed well in the quarter under review. Its differentiated menu offerings across restaurants and enhanced focus on delivery system are the major top-line drivers. Continual expansion through unit openings also bodes well. However, increased costs from labor, rent and operational initiatives may hurt the company’s margins. Further, a lesser franchised business model and slowdown in comps at Pizza Hut division remain concerns.”

Several other research firms have also commented on YUMC. UBS Group lowered Yum China from an “outperform” rating to a “market perform” rating in a research report on Friday, August 17th. Bank of America raised Yum China from an “underperform” rating to a “neutral” rating and boosted their price target for the stock from $34.00 to $35.00 in a research report on Wednesday, October 31st. Oppenheimer reduced their price target on Yum China from $45.00 to $40.00 and set an “outperform” rating on the stock in a research report on Thursday, August 2nd. Finally, Macquarie lowered Yum China from an “outperform” rating to a “neutral” rating in a research report on Thursday, August 2nd. Five investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Yum China presently has an average rating of “Hold” and an average price target of $42.75.

Shares of NYSE YUMC traded down $0.63 during midday trading on Friday, hitting $35.17. The stock had a trading volume of 1,624,193 shares, compared to its average volume of 2,669,727. The firm has a market capitalization of $13.56 billion, a P/E ratio of 24.77, a P/E/G ratio of 1.64 and a beta of 0.56. Yum China has a 1-year low of $30.10 and a 1-year high of $48.75. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.72 and a quick ratio of 1.49.

Yum China (NYSE:YUMC) last released its quarterly earnings results on Tuesday, October 30th. The company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.45 by $0.06. The firm had revenue of $2.21 billion for the quarter, compared to analyst estimates of $2.24 billion. Yum China had a return on equity of 20.73% and a net margin of 6.23%. Yum China’s revenue for the quarter was up 3.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.52 EPS. On average, equities research analysts expect that Yum China will post 1.51 EPS for the current fiscal year.

In other Yum China news, insider Riu Sun sold 8,405 shares of Yum China stock in a transaction that occurred on Monday, November 12th. The stock was sold at an average price of $36.50, for a total transaction of $306,782.50. Following the sale, the insider now directly owns 9,942 shares in the company, valued at approximately $362,883. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Ted Lee sold 3,795 shares of Yum China stock in a transaction that occurred on Wednesday, November 14th. The stock was sold at an average price of $36.26, for a total value of $137,606.70. The disclosure for this sale can be found here. Insiders have sold a total of 25,120 shares of company stock worth $930,188 over the last three months. 0.37% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently bought and sold shares of the business. Kovack Advisors Inc. increased its holdings in Yum China by 24.8% during the 3rd quarter. Kovack Advisors Inc. now owns 7,583 shares of the company’s stock worth $266,000 after purchasing an additional 1,505 shares during the last quarter. North Star Asset Management Inc. increased its holdings in Yum China by 2.4% during the 2nd quarter. North Star Asset Management Inc. now owns 72,983 shares of the company’s stock worth $2,807,000 after purchasing an additional 1,715 shares during the last quarter. Atria Investments LLC increased its holdings in shares of Yum China by 28.1% in the 2nd quarter. Atria Investments LLC now owns 9,081 shares of the company’s stock valued at $349,000 after acquiring an additional 1,990 shares during the last quarter. Baldwin Investment Management LLC increased its holdings in shares of Yum China by 27.3% in the 2nd quarter. Baldwin Investment Management LLC now owns 9,785 shares of the company’s stock valued at $376,000 after acquiring an additional 2,100 shares during the last quarter. Finally, Pinnacle Financial Partners Inc. increased its holdings in shares of Yum China by 8.8% in the 2nd quarter. Pinnacle Financial Partners Inc. now owns 28,294 shares of the company’s stock valued at $1,088,000 after acquiring an additional 2,278 shares during the last quarter. Institutional investors own 81.89% of the company’s stock.

Yum China Company Profile

Yum China Holdings, Inc owns, operates, and franchises restaurants in China. The company operates in two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Taco Bell, East Dawning, and Little Sheep brands, which specialize in chicken, pizza, hot pot cooking, Chinese food, and Mexican-style food categories.

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