Zacks Research Increases Earnings Estimates for Yum China

Yum China (NYSE:YUMC) – Equities research analysts at Zacks Research upped their FY2026 earnings per share estimates for Yum China in a research note issued on Wednesday, February 18th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $2.91 for the year, up from their previous forecast of $2.87. 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 Q4 2026 earnings at $0.45 EPS, Q1 2027 earnings at $0.97 EPS, Q3 2027 earnings at $1.08 EPS, Q4 2027 earnings at $0.55 EPS, FY2027 earnings at $3.41 EPS and FY2028 earnings at $3.97 EPS.

Yum China (NYSE:YUMC) last posted its quarterly earnings data on Wednesday, February 4th. The company reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. Yum China had a return on equity of 14.46% and a net margin of 7.87%.The business had revenue of $2.82 billion for the quarter, compared to analyst estimates of $2.72 billion. During the same period in the previous year, the company posted $0.30 earnings per share. The firm’s revenue for the quarter was up 8.8% on a year-over-year basis.

A number of other research firms have also commented on YUMC. 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. Wall Street Zen upgraded shares of Yum China from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. The Goldman Sachs Group reissued a “buy” rating and issued a $58.50 target price on shares of Yum China in a research report on Wednesday, February 4th. CLSA reissued an “outperform” rating and set a $55.00 price target on shares of Yum China in a research report on Tuesday, November 25th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $59.05.

Yum China Price Performance

Shares of Yum China stock opened at $54.61 on Friday. The firm has a market cap of $19.74 billion, a P/E ratio of 21.76, a price-to-earnings-growth ratio of 1.57 and a beta of 0.14. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.15 and a current ratio of 1.32. Yum China has a twelve month low of $41.00 and a twelve month high of $58.39. The firm’s 50-day simple moving average is $50.15 and its 200-day simple moving average is $46.72.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Jackson Grant Investment Advisers Inc. boosted its position in shares of Yum China by 526.3% during 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. Duncker Streett & Co. Inc. purchased a new position in shares of Yum China in the fourth quarter worth $26,000. Elyxium Wealth LLC bought a new stake in Yum China during the 4th quarter valued at $27,000. Quent Capital LLC bought a new position in shares of Yum China during the third quarter valued at about $28,000. Finally, Cresta Advisors Ltd. bought a new position in shares of Yum China during the fourth quarter valued at approximately $28,000. Institutional investors own 85.58% of the company’s stock.

Insider Buying and Selling at Yum China

In other Yum China news, insider Warton Wang sold 8,187 shares of the business’s stock in a transaction on Monday, November 24th. The shares were sold at an average price of $48.28, for a total transaction of $395,268.36. Following the completion of the sale, the insider owned 46,847 shares in the company, valued at approximately $2,261,773.16. The trade was a 14.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Joey Wat sold 104,000 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $55.18, for a total value of $5,738,720.00. Following the completion of the sale, the chief executive officer directly owned 433,306 shares of the company’s stock, valued at approximately $23,909,825.08. This trade represents a 19.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 124,688 shares of company stock worth $6,797,508. 0.40% of the stock is owned by company insiders.

Yum China Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be paid a dividend of $0.29 per share. 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. This represents a $1.16 dividend on an annualized basis and a yield of 2.1%. Yum China’s dividend payout ratio (DPR) is currently 38.25%.

Yum China declared that its Board of Directors has initiated a stock repurchase plan on Friday, December 12th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

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.