Key Points
- Insider sale: Yum China director Xueling Lu sold 23,504 shares on Feb. 24 at an average price of $55.84 for about $1.31 million and now directly owns 9,042 shares, a 72.22% reduction in her position.
- Recent results: Yum China beat estimates with $0.40 EPS and $2.82 billion revenue (up 8.8% YoY) for the quarter, and analysts maintain a consensus "Moderate Buy" with expected FY EPS of 2.54.
- Capital returns: The board authorized a $1.00 billion share buyback (up to ~5.8% of shares) and raised the quarterly dividend to $0.29 ($1.16 annualized, ~2.1% yield).
Yum China (NYSE:YUMC - Get Free Report) insider Xueling Lu sold 23,504 shares of the stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $55.84, for a total value of $1,312,463.36. Following the sale, the insider directly owned 9,042 shares in the company, valued at $504,905.28. This represents a 72.22% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.
Yum China Price Performance
Yum China stock traded down $0.71 during trading hours on Thursday, reaching $55.72. 190,826 shares of the stock were exchanged, compared to its average volume of 1,539,171. The company has a current ratio of 1.32, a quick ratio of 1.15 and a debt-to-equity ratio of 0.01. Yum China has a twelve month low of $41.00 and a twelve month high of $58.39. The company has a market cap of $20.14 billion, a P/E ratio of 22.26, a price-to-earnings-growth ratio of 1.58 and a beta of 0.14. The stock has a 50 day moving average of $50.74 and a two-hundred day moving average of $47.02.
Yum China (NYSE:YUMC - Get Free Report) last issued its 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 company had revenue of $2.82 billion during the quarter, compared to analysts' expectations of $2.72 billion. During the same period in the previous year, the company earned $0.30 EPS. The business's revenue for the quarter was up 8.8% compared to the same quarter last year. Equities analysts expect that Yum China will post 2.54 EPS for the current fiscal year.
Yum China announced that its Board of Directors has approved a share buyback plan on Friday, December 12th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 5.8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.
Yum China Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be issued a dividend of $0.29 per share. This is a positive change 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 annualized dividend and a dividend yield of 2.1%. Yum China's dividend payout ratio (DPR) is 38.25%.
Wall Street Analysts Forecast Growth
YUMC has been the topic of a number of analyst reports. CLSA reiterated an "outperform" rating and issued a $55.00 price target on shares of Yum China in a research report on Tuesday, November 25th. Wall Street Zen raised Yum China from a "hold" rating to a "buy" rating in a research note on Saturday, February 7th. Jefferies Financial Group reissued a "buy" rating and set a $63.64 target price on shares of Yum China in a research report on Thursday, February 5th. Weiss Ratings restated a "hold (c)" rating on shares of Yum China in a report on Wednesday, January 21st. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $58.50 price objective on shares of Yum China in a research note on Wednesday, February 4th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, Yum China currently has a consensus rating of "Moderate Buy" and an average price target of $59.05.
Read Our Latest Stock Analysis on Yum China
Institutional Investors Weigh In On Yum China
A number of hedge funds have recently modified their holdings of YUMC. Ashoka WhiteOak Capital Pte Ltd grew its holdings in Yum China by 0.7% during the fourth quarter. Ashoka WhiteOak Capital Pte Ltd now owns 28,350 shares of the company's stock valued at $1,342,000 after purchasing an additional 200 shares during the period. Glenview Trust Co lifted its position in shares of Yum China by 4.3% during the 4th quarter. Glenview Trust Co now owns 4,904 shares of the company's stock valued at $234,000 after buying an additional 200 shares during the last quarter. Truist Financial Corp grew its stake in shares of Yum China by 0.3% during the 4th quarter. Truist Financial Corp now owns 68,009 shares of the company's stock worth $3,247,000 after acquiring an additional 211 shares during the period. Biltmore Family Office LLC increased its holdings in Yum China by 3.1% in the 4th quarter. Biltmore Family Office LLC now owns 7,111 shares of the company's stock worth $339,000 after acquiring an additional 216 shares during the last quarter. Finally, Williams Jones Wealth Management LLC. raised its stake in Yum China by 2.7% in the 4th quarter. Williams Jones Wealth Management LLC. now owns 8,258 shares of the company's stock valued at $394,000 after acquiring an additional 221 shares during the period. Institutional investors own 85.58% of the company's stock.
About Yum China
(
Get Free Report)
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.
Read More
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
