Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

Yum China Holdings Inc (YUMC-N) is viewed positively by the experts, who highlight its strong management, best-in-class growth, and rock-solid balance sheet with no debt. The company's valuation is seen as discounted due to negative sentiment on the Chinese economy, providing a massive opportunity for growth over the next 10 years. YUMC has come out strong after being hurt by Covid and is considered a lower-risk way to play a Chinese recovery. The stock is viewed as a top pick with significant potential for growth and value appreciation.

Consensus
Positive
Valuation
Undervalued
PAST TOP PICK
(A Top Pick Aug 03/23, Down 40%)

Would continue to buy today. First-class operator. Best-in-class growth, lowest-in-class valuation. Sold off hard along with the rest of China. As part of a diversified portfolio, you want some EM exposure. Trades at 12x earnings, much less than NA peers.

food processing
BUY
YUMC vs. QSR

Uncertainty with QSR is that previous changes were difficult because it's a multi-brand platform. Valuation is very reasonable. Very good growth profile and management. Balance sheet is not investment grade, and some don't care. He cares, as it's difficult to grow if you're not investment grade. Investment grade gives you much larger pool of people who can supply capital.

Likes QSR, but owns YUMC instead. YUMC wins from a valuation and growth perspective, but also has more geopolitical risk.

food processing
TOP PICK

Wins big on valuation. Massive amount of cash on balance sheet, no debt. Trades around 14x earnings. Valuation due to negative sentiment on Chinese economy. Very robust FCF yield. Massive opportunity for growth over the next 10 years at a very discounted valuation. Yield is 1.7%.

Hurt by Covid, but has come out flying. Took advantage of low interest rates to accelerate store rollouts. A lower-risk way to play a Chinese recovery.

(Analysts’ price target is $54.81)
food processing
TOP PICK

Valuation is in the dumps. First-class operator. Rock-solid balance sheet, no debt at all. Net cash north of $2.5B. Great management team and digital capabilities. With cash so available, increased store count during distressed times. Unique, best of breed, depressed valuation of 16x adjusted earnings. 

Over 400M loyalty members on digital app, more than entire US population, which highlights just how well they can grow. Better growth outlook than almost everyone in its space. Yield is 1.6%.

(Analysts’ price target is $55.34)
food processing
TOP PICK

Spun off by Yum! Brands, so pure-play China but with western governance. Lower-risk way to play exceptional growth in China. Pristine balance sheet with more than $3B cash. Strong management. Accelerating store buildout. Amazing digital capabilities. Amazing valuation. Yield is 1%.

(Analysts’ price target is $61.78)
food processing
TOP PICK

Can play offense aggressively. About $3B in net cash on balance sheet. Used excess capital to accelerate store buildout and growth profile. Results from this won't be seen for 5-10 years. Wonderful management and best-in-class digital capabilities. Pursued vertical integration to secure product availability. Yield is 0.90%.

(Analysts’ price target is $72.92)
food processing
PAST TOP PICK
(A Top Pick Feb 16/22, Up 14%)

Exceptionally well run. Amazing digital capabilities. China is an unpenetrated market. Negatively affected by sentiment, and that's when you want to take advantage. Still holds, and would be willing to buy today.

food processing
PAST TOP PICK
(A Top Pick Dec 17/21, Up 19%) KFC, Taco Bell, Pizza Hut, plus other local brands. Wonderfully run. Beaten down by Covid and the threat of delisting. Wonderful balance sheet that can be used to accelerate growth. Valuation has gone up, so it's a hold for him instead of a buy.
food processing
PAST TOP PICK
(A Top Pick Dec 17/21, Down 9%) It's been punished by lockdowns in China. Well-run with dominant brands. They did an equity raise in Hong Kong 2 years ago, so they have a lot of cash. They've been using that to build-out their restaurants, so in 5-10 years time growth looks good. But over the short term is down.
food processing
PAST TOP PICK
(A Top Pick Aug 17/21, Down 31%) Unique business. Hit with Covid lockdowns and regulatory skirmish between US-China. Fear of delisting, though listed also in Hong Kong. Over 4B in cash to continue building out or buy back shares.
food processing
PAST TOP PICK
(A Top Pick Feb 25/21, Down 17%) Caught in regulatory shift. Building new stores. Hampered by massive lockdowns. As Covid recedes, it will benefit. Long-term demographics remain favourable. Rising disposable income, young population, and longer working hours for urbanites should increase restaurant spending. 14-15% long-term earnings growth. China is tricky, so for new clients, he's taking only partial positions.
food processing
TOP PICK
Largest restaurant operator in China. All things China have been in the penalty box. Low regulatory risk. Constrained by pandemic, Q4 results weaker than expected. Long-term compounder from growth in an unpenetrated market. Inexpensive valuation. Strong balance sheet. Yield is 0.92%. (Analysts’ price target is $61.88)
food processing
TOP PICK
A lot of negative sentiment on China, however company is largest restaurant operator in China. Lots of cash on balance sheet (over $4 billion). Great management team. Business can scale very well. 5-10 years will see exceptional growth. 320 million users of order app (exceptional).
food processing
TOP PICK
Spun off from Yum Brands. There's negativity with any Chinese shares, so it has sold off hard in the past month. It's the biggest resto operator in China with a tremendous growth profile, lots of room. They are well positioned. Forward PE is 27x and $4.3 billion on its balance sheet. After an equity issue at the end of 2020, they have capital and have room to grow. He really likes it. China is a very fragmented market. (Analysts’ price target is $72.78)
food processing
TOP PICK
Quick serve in China. Adding restaurants. Will benefit from growing middle class. Expects 13% revenue growth rate over the next several years. Yield is 0.80%. (Analysts’ price target is $67.37)
food processing
Showing 1 to 15 of 17 entries

Yum China Holdings Inc(YUMC-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for Yum China Holdings Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Yum China Holdings Inc(YUMC-N) Frequently Asked Questions

What is Yum China Holdings Inc stock symbol?

Yum China Holdings Inc is a American stock, trading under the symbol YUMC-N on the New York Stock Exchange (YUMC). It is usually referred to as NYSE:YUMC or YUMC-N

Is Yum China Holdings Inc a buy or a sell?

In the last year, 2 stock analysts published opinions about YUMC-N. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Yum China Holdings Inc.

Is Yum China Holdings Inc a good investment or a top pick?

Yum China Holdings Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Yum China Holdings Inc.

Why is Yum China Holdings Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Yum China Holdings Inc worth watching?

2 stock analysts on Stockchase covered Yum China Holdings Inc In the last year. It is a trending stock that is worth watching.

What is Yum China Holdings Inc stock price?

On 2024-12-06, Yum China Holdings Inc (YUMC-N) stock closed at a price of $48.83.