Headwater Capital Co Ltd Lowers Stake in Yum China $YUMC

Headwater Capital Co Ltd reduced its position in shares of Yum China (NYSE:YUMC) by 16.5% during the 4th quarter, HoldingsChannel reports. The fund owned 100,000 shares of the company’s stock after selling 19,700 shares during the period. Yum China accounts for 0.7% of Headwater Capital Co Ltd’s portfolio, making the stock its 17th biggest position. Headwater Capital Co Ltd’s holdings in Yum China were worth $4,774,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also modified their holdings of YUMC. Jackson Grant Investment Advisers Inc. raised 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 worth $26,000 after purchasing an additional 500 shares during the last quarter. Duncker Streett & Co. Inc. acquired a new position in shares of Yum China during the 4th quarter worth about $26,000. Elyxium Wealth LLC acquired a new position in shares of Yum China during the 4th quarter worth about $27,000. Cresta Advisors Ltd. acquired a new position in shares of Yum China during the 4th quarter worth about $28,000. Finally, Stone House Investment Management LLC raised its position in shares of Yum China by 106.2% during 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 during the last quarter. 85.58% of the stock is owned by hedge funds and other institutional investors.

Yum China News Roundup

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

• Positive Sentiment: Yum China is acquiring the Pizza Hut brand rights in mainland China for about $1.2 billion, which should give the company more control over menu changes, store expansion, and long-term brand strategy. Yum China to Acquire Ownership of the Pizza Hut Brand in Mainland China
• Positive Sentiment: Management described the transaction as a transformative milestone, suggesting the deal could support future growth and improve Yum China’s ability to optimize the Pizza Hut business in China. Yum China Buys Pizza Hut Brand In China
• Neutral Sentiment: Yum! Brands is selling Pizza Hut globally to LongRange Capital and Yum China in a split deal, with LongRange taking the U.S. and other markets while Yum China keeps mainland China operations. Pizza Hut Sold to Two Firms for $2.7 Billion
• Neutral Sentiment: The sale follows years of weak Pizza Hut performance and competitive pressure, which is why the brand is being separated from Yum! Brands rather than kept as a single global asset. Pizza Hut to be sold for $2.7B after years of lagging sales

Analysts Set New Price Targets

Several research analysts recently weighed in on YUMC shares. Wall Street Zen downgraded shares of Yum China from a “buy” rating to a “hold” rating in a research report on Sunday, June 7th. Weiss Ratings downgraded shares of Yum China from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, May 26th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Yum China presently has a consensus rating of “Moderate Buy” and a consensus target price of $59.05.

Yum China Stock Down 1.2%

YUMC stock opened at $43.71 on Wednesday. The company has a market cap of $15.26 billion, a price-to-earnings ratio of 16.75, a PEG ratio of 1.24 and a beta of 0.09. The company has a current ratio of 1.01, a quick ratio of 0.83 and a debt-to-equity ratio of 0.01. Yum China has a 12 month low of $41.69 and a 12 month high of $58.39. The firm has a 50-day moving average of $46.32 and a two-hundred day moving average of $49.06.

Yum China (NYSE:YUMC) last released its quarterly earnings data on Wednesday, April 29th. The company reported $0.87 EPS for the quarter, meeting analysts’ consensus estimates of $0.87. The company had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.21 billion. Yum China had a net margin of 7.83% and a return on equity of 15.11%. Yum China’s quarterly revenue was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.77 EPS. As a group, analysts forecast that Yum China will post 2.95 earnings per share for the current fiscal year.

Yum China Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Stockholders of record on Wednesday, May 27th will be issued a dividend of $0.29 per share. The ex-dividend date is Wednesday, May 27th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 2.7%. Yum China’s dividend payout ratio (DPR) is currently 44.44%.

Yum China 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.