Latest news with #YumChinaHoldings
Yahoo
4 days ago
- Business
- Yahoo
Why Is Yum China (YUMC) Up 3.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Yum China Holdings (YUMC). Shares have added about 3.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Yum China due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. It turns out, estimates revision have trended downward during the past month. At this time, Yum China has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Yum China has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yum China (YUMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Yum China Holdings First Quarter 2025 Earnings: Revenues Disappoint
Revenue: US$2.98b (flat on 1Q 2024). Net income: US$292.0m (up 1.7% from 1Q 2024). Profit margin: 9.8% (in line with 1Q 2024). EPS: US$0.78 (up from US$0.72 in 1Q 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 4.5%. Earnings per share (EPS) was mostly in line with analyst estimates. Looking ahead, revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Hospitality industry in the US. Performance of the American Hospitality industry. The company's shares are down 6.6% from a week ago. It's possible that Yum China Holdings could be undervalued with our 6-factor valuation analysis indicating a potential opportunity. Discover what analysts are forecasting and how the current share price shapes up by clicking here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
02-05-2025
- Business
- Yahoo
Is Yum China Holdings, Inc. (YUMC) Among the Best Fast Food Stocks to Buy Now?
We recently compiled a list of the 12 Best Fast Food Stocks to Buy Now. In this article, we are going to take a look at where Yum China Holdings, Inc. (NYSE:YUMC) stands against the other fast food stocks. Fast food stocks are businesses that run quick-service restaurants. These stocks can be a smart option to invest in the restaurant industry, which tends to perform well even during economic downturns due to its low costs and convenience. For example, the early COVID-19 pandemic was not favorable for the restaurant business overall, but fast-food chains that were able to offer curbside pickup, delivery, and drive-thru services performed better than their competitors that relied on dine-in. A challenging economic situation presents fewer risks because many fast-food restaurants prioritize providing great value. As per a research report, the global fast food market has expanded gradually in recent years. It will grow at a compound annual growth rate (CAGR) of 2.9%, from $645.2 billion in 2024 to $663.92 billion in 2025. Changes in customer choices and lifestyles, rapid urbanization, globalization, greater demand for convenience meals, and an increase in the working population have all contributed to historic expansion. The fast-food market's largest region in 2024 was North America. Asia-Pacific is anticipated to be the fastest-growing region over the projection period. Automation is changing the fast-food service business in the United States. Robotic systems and artificial intelligence tools are now reducing production times and increasing efficiency. Complex beverage preparation time has been reduced from 87 to just 36 seconds due to a new drink-making system. In the meantime, a dual-sided grill has sped up cooking by 70% in high-volume locations, and an avocado-processing robot reduces prep time by 50%. According to a National Restaurant Association research released in February 2023, 58% of restaurant operators anticipated that 2023 would see a rise in the usage of technology and automation to cope with labor shortages. In a May 2023 poll, HungerRush found that 36 percent of 1,000 Americans stated they believed that large restaurant chains lacked enough employees to process orders, make food, and deliver food. Chief information officer Aaron Nilsson of Jet's Pizza, a franchise with locations in Michigan, introduced a phone bot driven by artificial intelligence to take orders for pizza. He stated: 'Now most consumers expect their local pizza place and their favorite coffee house to remember their last order, know what credit card they want to use, and make it quick and easy for them to complete an order. Society has moved on and automation is expected – even from the small-time operator.' According to a 2024 LendingTree survey, 78% of Americans now consider fast food a luxury, with prices rising by more than 60% since 2014. Quick-service restaurants (QSRs) have been compelled by this change to reconsider what value is. Companies are prioritizing quality, convenience, and technology over price competition to defend higher prices. According to Savneet Singh, CEO of a significant restaurant technology business, the value today isn't just about price; it's about the entire experience. Moreover, technology is being used by businesses to improve this perceived value. AI-powered kiosks, drive-thru technology, and mobile ordering shorten wait times and customize service, while kitchen automation increases reliability. These days, loyalty programs use data analytics to provide hyper-personalized rewards, which boosts consumer engagement and encourages repeat visits. However, affordability is still crucial. The expense of fast food has caused 62% of consumers to cut back on their purchases, which has led several businesses to bring back $5 meal offers, as per the LendingTree study. A combination of price, quality, convenience, and personalization is the new QSR value equation. QSRs have the potential to redefine luxury as intelligent, easily accessible service by utilizing technology and loyalty. The iconic yellow and red roof of a franchise restaurant in the bustling streets of a city. For this article, we sifted through the online rankings to form an initial list of the 20 Fast Food Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Number of Hedge Fund Holders: 29 Yum China Holdings, Inc. (NYSE:YUMC) is China's biggest restaurant operator, with over 16,000 locations and system-wide sales of about $12 billion in 2024. It generates revenue from franchise fees and its own eateries. The firm, which separated from Yum Brands in October 2016, pays 3% of systemwide sales as a trademark licensee. It owns, operates, and franchises restaurants in China under the brand names KFC, Pizza Hut, and Taco Bell. It is among the Best Food Stocks. The company gave $1.5 billion to shareholders in 2024, which included $1.24 billion in share buybacks and $248 million in dividends, lowering the number of outstanding shares by more than 31 million. The business concluded 2024 with $2.8 billion in net cash and $714 million in free cash flow. Given its excellent financial position, Yum China Holdings, Inc. (NYSE:YUMC) is boosting its quarterly dividend by 50% to $0.24 per share, pushing its payment ratio beyond 40% of expected 2024 diluted earnings per share. Chen Luo, a BofA analyst, maintained his Buy recommendation on Yum China Holdings, Inc. (NYSE:YUMC)'s shares and increased his price objective from $57.50 to $60.50. The company adjusted its forecasts for same-store sales growth and margin, which resulted in only minor adjustments to EPS projections. Additionally, the company raised its target multiples in its blended valuation, which fueled its higher price objective. In a preview, the analyst informs investors that the company anticipates a 'solid' first quarter. Overall, YUMC ranks 12th on our list of the 12 Best Fast Food Stocks to Buy Now. While we acknowledge the potential of Fast Food companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than YUMC but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
01-05-2025
- Business
- Yahoo
Yum China Holdings (YUMC) Q1 Earnings and Revenues Lag Estimates
Yum China Holdings (YUMC) came out with quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.28%. A quarter ago, it was expected that this restaurant operator in China would post earnings of $0.29 per share when it actually produced earnings of $0.30, delivering a surprise of 3.45%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Yum China , which belongs to the Zacks Retail - Restaurants industry, posted revenues of $2.98 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.19%. This compares to year-ago revenues of $2.96 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Yum China shares have lost about 3.1% since the beginning of the year versus the S&P 500's decline of -5.5%. While Yum China has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Yum China: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.59 on $2.84 billion in revenues for the coming quarter and $2.51 on $11.86 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Cava Group (CAVA), is yet to report results for the quarter ended March 2025. The results are expected to be released on May 15. This Mediterranean restaurant chain is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level. Cava Group's revenues are expected to be $330.46 million, up 27.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yum China (YUMC) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-04-2025
- Business
- Yahoo
Yum China Holdings (NYSE:YUMC) Sees 10% Price Increase Over Last Week
Yum China Holdings (NYSE: YUMC) experienced a significant board turnover with the departure of Peter A. Bassi, who will not stand for re-election, thereby creating room for new perspectives in its leadership. This shift in board composition might have added weight to the company's notable 10% share price increase over the past week. The company's performance notably outpaced the broader market, which rose by 5% during the same period. While there were no drastic period-specific events reported, the governance updates may have been perceived positively by investors looking for strong corporate oversight. We've spotted 2 weaknesses for Yum China Holdings you should be aware of. We've found 24 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The recent board turnover at Yum China Holdings, highlighted by Peter A. Bassi's departure, could influence the company's operational direction and future performance. This leadership change aligns with ongoing initiatives that aim to enhance operational efficiency, potentially impacting revenue growth and profitability. These efforts include expanding store numbers, focusing on digital advancements, and optimizing cost management, which analysts believe will drive revenue growth, anticipated to rise by 6.5% annually over the next three years. In terms of longer-term performance, Yum China's total shareholder return was 16.93% over the past year. This growth outpaced the hospitality industry's return of 2.8% in the same timeframe. Such performance indicates strong investor confidence, possibly bolstered by both recent governance updates and operational strategies. The company's stock currently trades at a significant discount to analyst price targets, with a potential 25.7% upside from its current price of US$44.78 to the consensus price target of US$60.26. Navigate through the intricacies of Yum China Holdings with our comprehensive balance sheet health report here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:YUMC. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
