Yum China (NYSE:YUMC) CEO Sells $262,987.13 in Stock

Yum China (NYSE:YUMC) CEO Joey Wat sold 4,613 shares of Yum China stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $57.01, for a total value of $262,987.13. Following the sale, the chief executive officer directly owned 537,306 shares of the company’s stock, valued at approximately $30,631,815.06. The trade was a 0.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Yum China Stock Up 3.3%

YUMC stock opened at $55.42 on Friday. Yum China has a fifty-two week low of $41.00 and a fifty-two week high of $58.39. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.32 and a quick ratio of 1.15. The stock has a market capitalization of $20.03 billion, a price-to-earnings ratio of 22.08, a PEG ratio of 1.57 and a beta of 0.14. The business’s fifty day moving average price is $49.48 and its two-hundred day moving average price is $46.49.

Yum China (NYSE:YUMC) last released its quarterly earnings results on Wednesday, February 4th. The company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.35 by $0.05. Yum China had a net margin of 7.87% and a return on equity of 14.46%. The business had revenue of $2.82 billion for the quarter, compared to the consensus estimate of $2.72 billion. During the same period in the prior year, the company posted $0.30 earnings per share. Yum China’s revenue was up 8.8% compared to the same quarter last year. On average, equities analysts anticipate that Yum China will post 2.54 earnings per share for the current year.

Yum China Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be given a $0.29 dividend. The ex-dividend date is Wednesday, March 4th. This is a positive change from Yum China’s previous quarterly dividend of $0.24. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.1%. Yum China’s dividend payout ratio (DPR) is presently 38.25%.

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

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $58.50 price objective on shares of Yum China in a report on Wednesday, February 4th. CLSA reaffirmed an “outperform” rating and issued a $55.00 price target on shares of Yum China in a research note on Tuesday, November 25th. Weiss Ratings reiterated a “hold (c)” rating on shares of Yum China in a research note on Wednesday, January 21st. Jefferies Financial Group restated a “buy” rating and issued a $63.64 target price on shares of Yum China in a research report on Thursday, February 5th. Finally, Wall Street Zen upgraded shares of Yum China from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, Yum China has a consensus rating of “Moderate Buy” and a consensus price target of $59.05.

Institutional Investors Weigh In On Yum China

A number of hedge funds have recently made changes to their positions in the stock. Duncker Streett & Co. Inc. bought a new position in Yum China in the 4th quarter valued at approximately $26,000. Elyxium Wealth LLC bought a new position in shares of Yum China in the 4th quarter valued at $27,000. Jackson Grant Investment Advisers Inc. lifted its stake in shares of Yum China by 526.3% in the 3rd quarter. Jackson Grant Investment Advisers Inc. now owns 595 shares of the company’s stock valued at $26,000 after acquiring an additional 500 shares during the last quarter. Cresta Advisors Ltd. bought a new stake in Yum China during the 4th quarter worth $28,000. Finally, Stone House Investment Management LLC increased its holdings in Yum China by 106.2% in the 4th quarter. Stone House Investment Management LLC now owns 629 shares of the company’s stock worth $30,000 after purchasing an additional 324 shares in the last quarter. 85.58% of the stock is currently owned by institutional investors and hedge funds.

Yum China Company Profile

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.