Vanguard Group Inc. Raises Holdings in Yum China $YUMC

Vanguard Group Inc. grew its position in shares of Yum China (NYSE:YUMC) by 1.0% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 15,545,068 shares of the company’s stock after buying an additional 158,607 shares during the quarter. Vanguard Group Inc. owned 4.27% of Yum China worth $680,252,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently added to or reduced their stakes in YUMC. JPMorgan Chase & Co. lifted its stake in shares of Yum China by 21.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 29,150,667 shares of the company’s stock valued at $1,303,326,000 after buying an additional 5,164,701 shares in the last quarter. Principal Financial Group Inc. boosted its position in shares of Yum China by 14.8% during the third quarter. Principal Financial Group Inc. now owns 20,169,661 shares of the company’s stock valued at $883,687,000 after buying an additional 2,604,480 shares during the period. Alliancebernstein L.P. increased its stake in Yum China by 13.1% in the 2nd quarter. Alliancebernstein L.P. now owns 5,871,382 shares of the company’s stock worth $262,509,000 after buying an additional 677,928 shares during the period. Massachusetts Financial Services Co. MA increased its stake in shares of Yum China by 14.3% during the third quarter. Massachusetts Financial Services Co. MA now owns 4,734,295 shares of the company’s stock valued at $203,196,000 after buying an additional 591,251 shares during the period. Finally, Norges Bank bought a new position in Yum China in the second quarter worth approximately $201,814,000. 85.58% of the stock is currently owned by institutional investors.

Yum China Trading Up 2.9%

Shares of YUMC stock opened at $55.17 on Tuesday. The company has a quick ratio of 1.15, a current ratio of 1.32 and a debt-to-equity ratio of 0.01. The business has a fifty day simple moving average of $50.40 and a 200-day simple moving average of $46.87. Yum China has a fifty-two week low of $41.00 and a fifty-two week high of $58.39. The stock has a market cap of $19.94 billion, a P/E ratio of 21.98, a P/E/G ratio of 1.52 and a beta of 0.13.

Yum China (NYSE:YUMC) last released its quarterly earnings results on Wednesday, February 4th. The company reported $0.40 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. The company had revenue of $2.82 billion during the quarter, compared to analysts’ expectations of $2.72 billion. Yum China had a return on equity of 14.46% and a net margin of 7.87%.The business’s revenue for the quarter was up 8.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.30 earnings per share. On average, analysts forecast that Yum China will post 2.54 earnings per share for the current fiscal year.

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 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 yield of 2.1%. Yum China’s payout ratio is presently 46.22%.

Yum China declared that its board has authorized a stock buyback plan on Friday, December 12th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to buy up to 5.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

YUMC has been the topic of a number of research analyst reports. CLSA reissued an “outperform” rating and set a $55.00 price objective on shares of Yum China in a report on Tuesday, November 25th. Wall Street Zen upgraded shares of Yum China from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Jefferies Financial Group reissued a “buy” rating and issued a $63.64 price target on shares of Yum China in a research note on Thursday, February 5th. Weiss Ratings restated a “hold (c)” rating on shares of Yum China in a research report on Wednesday, January 21st. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $58.50 price target on shares of Yum China in a research report on Wednesday, February 4th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $59.05.

Insider Transactions at Yum China

In other Yum China news, CEO Joey Wat sold 104,000 shares of the stock in a transaction on Friday, February 13th. The shares were sold at an average price of $55.18, for a total transaction of $5,738,720.00. Following the transaction, the chief executive officer directly owned 433,306 shares in the company, valued at $23,909,825.08. This represents a 19.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jerry Ding sold 3,000 shares of Yum China stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $55.14, for a total transaction of $165,420.00. Following the completion of the transaction, the insider directly owned 915 shares of the company’s stock, valued at $50,453.10. This trade represents a 76.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 111,613 shares of company stock valued at $6,167,127 in the last three months. 0.40% of the stock is currently owned by company insiders.

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.