Zacks Research Brokers Lift Earnings Estimates for Yum China

Yum China (NYSE:YUMC) – Equities research analysts at Zacks Research increased their FY2026 EPS estimates for shares of Yum China in a report issued on Thursday, August 13th. Zacks Research analyst Team now forecasts that the company will post earnings of $2.92 per share for the year, up from their prior forecast of $2.91. The consensus estimate for Yum China’s current full-year earnings is $2.95 per share. Zacks Research also issued estimates for Yum China’s Q1 2027 earnings at $0.99 EPS, Q2 2027 earnings at $0.78 EPS, Q3 2027 earnings at $1.11 EPS, Q4 2027 earnings at $0.54 EPS, FY2027 earnings at $3.42 EPS, Q1 2028 earnings at $1.11 EPS and FY2028 earnings at $4.03 EPS.

Yum China (NYSE:YUMC) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.67 by $0.03. Yum China had a net margin of 7.84% and a return on equity of 15.73%. The firm had revenue of $3.14 billion for the quarter, compared to analysts’ expectations of $3.05 billion. During the same quarter last year, the company posted $0.58 EPS. The business’s quarterly revenue was up 12.6% on a year-over-year basis.

A number of other equities research analysts also recently weighed in on YUMC. Wall Street Zen downgraded Yum China from a “buy” rating to a “hold” rating in a research report on Sunday, August 9th. The Goldman Sachs Group reiterated a “buy” rating and issued a $59.00 price objective on shares of Yum China in a report on Thursday, July 30th. Finally, Weiss Ratings lowered Yum China from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, May 26th. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $59.21.

Yum China Stock Down 1.4%

Shares of NYSE:YUMC opened at $47.25 on Friday. Yum China has a 52-week low of $40.15 and a 52-week high of $58.39. The firm has a fifty day moving average of $43.95 and a 200 day moving average of $47.93. The firm has a market capitalization of $16.18 billion, a PE ratio of 17.31, a price-to-earnings-growth ratio of 1.26 and a beta of 0.09. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.83 and a current ratio of 1.01.

Institutional Trading of Yum China

Large investors have recently modified their holdings of the business. Aberdeen Wealth Management LLC purchased a new position in Yum China during the 2nd quarter valued at $33,000. Cibc World Market Inc. bought a new stake in shares of Yum China in the 2nd quarter worth $9,985,000. OMERS ADMINISTRATION Corp bought a new position in Yum China during the 2nd quarter valued at about $1,333,000. Sanctuary Advisors LLC bought a new stake in Yum China in the 2nd quarter worth approximately $657,000. Finally, Polymer Capital Management HK LTD bought a new position in Yum China in the second quarter valued at about $1,392,000. 85.58% of the stock is owned by institutional investors.

Insider Buying and Selling

In other Yum China news, insider Jeff Kuai sold 14,586 shares of the business’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $47.72, for a total value of $696,043.92. Following the completion of the sale, the insider owned 63,541 shares in the company, valued at approximately $3,032,176.52. The trade was a 18.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.44% of the stock is owned by company insiders.

Yum China Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, August 27th will be paid a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Thursday, August 27th. Yum China’s payout ratio is 42.49%.

More Yum China News

Here are the key news stories impacting Yum China this week:

• Positive Sentiment: Higher forward earnings expectations: Zacks Research increased its FY2026 EPS estimate to $2.92 from $2.91, FY2027 to $3.42 from $3.32, and FY2028 to $4.03 from $3.81. It also raised estimates for Q1 2027, Q3 2027, Q4 2027 and Q1 2028. These revisions point to stronger anticipated earnings growth for Yum China’s KFC, Pizza Hut and other restaurant operations.
• Positive Sentiment: Recent operating momentum supports the revisions: Yum China’s latest quarterly results exceeded expectations, with EPS of $0.70 versus a $0.67 consensus estimate and revenue of $3.14 billion versus forecasts of $3.05 billion. Revenue increased 12.6% year over year, providing a fundamental basis for the more optimistic outlook.
• Positive Sentiment: Dividend and analyst support: The company declared a quarterly dividend of $0.29 per share, equivalent to $1.16 annually and a yield of roughly 2.5%. Goldman Sachs has maintained a Buy rating with a $59 price target, while the broader analyst consensus remains “Moderate Buy” with a $59.21 target.
• Neutral Sentiment: Restaurant industry trends remain supportive: Zacks highlighted Yum China among restaurant stocks benefiting from steady industry sales, value-oriented dining and changing consumer demand. This offers a favorable sector backdrop but is not a company-specific catalyst. Restaurant industry growth article
• Negative Sentiment: Insider selling: Insider Jeff Kuai sold 14,586 shares for approximately $696,000, reducing his direct holdings by 18.67%. While the sale may reflect personal financial considerations, it can weigh modestly on sentiment because it signals reduced insider ownership. Yum China insider sale article

About Yum China

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.