Yum China Stock Rises On Upgrade: Retail’s Not Convinced
Yum China’s stock has risen more than 5% in the past week as the company announced the date for its upcoming results for the fourth quarter.
Shares of Yum China Holdings Inc. (YUMC) rose more than 3% on Friday after the fast food restaurant operator in China received an upgrade from OTR Global but retail reaction on Stocktwits lagged the stock price move.
OTR Global upgraded Yum to ‘Mixed’ from ‘Negative,’ citing checks that point to improved sales growth in the fourth quarter, Fly.com reported.
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Yum’s stock has risen more than 5% in the past week as the company announced the date for its upcoming results for the fourth quarter and fiscal year 2024. The company plans to report quarterly results on February 6, after the trading hours of the Hong Kong Stock Exchange.
Yum China, a Fortune 500 company, is expected to post earnings per share of $0.30
estimated revenues of $2.62 billion by Wall Street analysts, according to Stocktwits data.
The company beat EPS estimates in all four quarters last year, but missed revenue estimates twice.
In its most recent quarter, Yum reported adjusted EPS of $0.77, beating consensus estimates of $0.67. Its Q3 revenue came in at $3.07 billion, beating consensus estimates of $3.05 billion.
Same-store sales reached 97% of the prior year's level, up from 96% in the second quarter.
"We delivered strong results again in the third quarter. Operating profit increased by 15%, core operating profit grew 18%, and diluted EPS increased by 33%, Joey Wat, CEO of Yum China, said at the time.
Retail excitement on the Stocktwits platform was largely lagging as the company heads into the earnings season, and a recent inclusion by S&P Global in its sustainability rankings.
Yum China has about 400,000 employees and operates over 15,000 restaurants under six brands across around 2,200 cities in China including KFC and Pizza Hut.
Yum China has also partnered with Lavazza to develop the Lavazza coffee concept in China.
Yum China has been ranked number one globally for the Restaurant & Leisure Facilities Industry in the S&P Global 2024 Corporate Sustainability Assessment (CSA), the compay said. It is also reportedly a member of both the Dow Jones Sustainability Indices (DJSI): World Index (DJSI World) and Emerging Market Index (DJSI Emerging Markets) for the fifth consecutive year.
Yum China’s stock is down 7% year-to-date.
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