Yum China Holdings (YUMC) Receives a Rating Update from a Top Analyst

By Austin Angelo

Oppenheimer analyst Brian Bittner reiterated a Hold rating on Yum China Holdings (YUMCResearch Report) yesterday. The company’s shares closed yesterday at $36.45.

Bittner noted:

“Following a solid 4Q18 report, mgmt highlighted macro and company-specific headwinds as the YUMC model enters 2019. We are forced to maintain our below- consensus EPS through 2020. Our analysis suggests earnings growth could be negative in ’19 owing to restaurant margin pressures and meaningful G&A resets. For 4Q18 SSS, KFC continued to perform well (+3%), while PH remained a negative drag (-4%). Both brands have interesting sales drivers in ’19, but management appeared cautious against a potentially softer and uncertain spending environment in China. Maintain Perform rating.”

According to TipRanks.com, Bittner is a top 100 analyst with an average return of 11.3% and a 70.0% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and McDonald’s Corp.

Yum China Holdings has an analyst consensus of Hold.

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Yum China Holdings’ market cap is currently $13.92B and has a P/E ratio of 25.67. The company has a Price to Book ratio of 4.67.

Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock.

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Yum China Holdings, Inc. engages in the operation and management of restaurants and fast food chains. It operates through the following segments: Kentucky Fried Chicken (KFC), Pizza Hut, and All Other Segments. The Pizza Hut segment covers the Pizza Hut casual dining and Pizza Hut home service.