Yum China (NYSE:YUMC) Posts Earnings Results, Misses Estimates By $0.01 EPS

Yum China (NYSE:YUMC) released its quarterly earnings data on Wednesday. The company reported $0.87 earnings per share for the quarter, missing analysts’ consensus estimates of $0.88 by ($0.01), FiscalAI reports. Yum China had a return on equity of 14.65% and a net margin of 7.87%.The business had revenue of $3.27 billion during the quarter, compared to analysts’ expectations of $3.21 billion. During the same period last year, the company earned $0.77 earnings per share. The firm’s revenue was up 9.7% compared to the same quarter last year.

Here are the key takeaways from Yum China’s conference call:

• Delivered a solid Q1 with revenue up 10% (reporting), system sales +4% ex-FX, operating profit of $447M (record) and OP margin expansion of ~20 bps; Pizza Hut delivered double-digit OP growth and restaurant margin improved to 15%.
• Accelerated expansion with 636 net new stores in Q1 (over one-third of the full-year target), on track for >1,900 net new stores in 2026 and to surpass 20,000 total stores, with franchisees contributing 42% of openings.
• Rising delivery mix (from 42% to 54%) has pushed rider costs to nearly 30% of labor and pressured restaurant margins (restaurant margin down ~40 bps), a persistent near-term headwind though management expects easing into H2.
• Module and format rollouts are scaling: KCOFFEE exceeded 2,600 locations (sales more than doubled YoY; target 5,000 by end?2027) and KPRO reached 280 stores with the target raised to 600, each driving meaningful incremental sales and margin uplift.
• Strong shareholder returns — returned $316M in Q1 and guiding to $1.5B of total capital returns in 2026 (?$1.1B buybacks and $400M dividends), plus a plan to return ~100% of free cash flow from 2027 onward.

Yum China Stock Up 2.9%

NYSE:YUMC traded up $1.35 during mid-day trading on Wednesday, reaching $48.69. The company’s stock had a trading volume of 2,307,853 shares, compared to its average volume of 1,588,143. The firm has a market capitalization of $17.10 billion, a PE ratio of 19.40, a price-to-earnings-growth ratio of 1.35 and a beta of 0.17. The stock has a fifty day moving average of $51.12 and a 200-day moving average of $49.09. Yum China has a 1 year low of $41.69 and a 1 year high of $58.39. The company has a quick ratio of 0.85, a current ratio of 1.05 and a debt-to-equity ratio of 0.01.

Yum China Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 17th. Investors of record on Wednesday, May 27th will be paid a $0.29 dividend. The ex-dividend date of this dividend is Wednesday, May 27th. This represents a $1.16 dividend on an annualized basis and a yield of 2.4%. Yum China’s dividend payout ratio is 46.22%.

Analyst Ratings Changes

YUMC has been the subject of a number of research reports. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $58.50 price objective on shares of Yum China in a research note on Wednesday, February 4th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $63.64 price objective on shares of Yum China in a research note on Thursday, February 5th. Wall Street Zen raised shares of Yum China from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a research note on Wednesday, January 21st. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $59.05.

Insider Buying and Selling at Yum China

In other Yum China news, insider Jerry Ding sold 3,000 shares of the 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 sale, the insider directly owned 915 shares of the company’s stock, valued at approximately $50,453.10. This represents a 76.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Xueling Lu sold 23,504 shares of the stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $55.84, for a total transaction of $1,312,463.36. Following the sale, the insider directly owned 9,042 shares of the company’s stock, valued at approximately $504,905.28. The trade was a 72.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 135,117 shares of company stock valued at $7,479,590. 0.40% of the stock is currently owned by insiders.

Institutional Trading of Yum China

Several hedge funds have recently modified their holdings of the company. Compound Planning Inc. lifted its position in shares of Yum China by 26.4% during the fourth quarter. Compound Planning Inc. now owns 13,277 shares of the company’s stock valued at $634,000 after buying an additional 2,775 shares during the last quarter. Corient Private Wealth LLC lifted its position in shares of Yum China by 22.9% during the fourth quarter. Corient Private Wealth LLC now owns 33,761 shares of the company’s stock valued at $1,608,000 after buying an additional 6,297 shares during the last quarter. Vident Advisory LLC lifted its position in shares of Yum China by 17.6% during the fourth quarter. Vident Advisory LLC now owns 16,745 shares of the company’s stock valued at $799,000 after buying an additional 2,512 shares during the last quarter. Beacon Pointe Advisors LLC lifted its position in shares of Yum China by 15.0% during the fourth quarter. Beacon Pointe Advisors LLC now owns 15,438 shares of the company’s stock valued at $737,000 after buying an additional 2,016 shares during the last quarter. Finally, EP Wealth Advisors LLC purchased a new stake in shares of Yum China during the fourth quarter valued at about $282,000. 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: Company-released results: Yum China reported Q1 results with 10% revenue growth, 12% operating profit growth, record quarterly net new-store openings, operating margin expansion for the eighth consecutive quarter, and a plan to return about $1.5 billion to shareholders (~9% of market cap). This is the primary driver of the stock’s strength. Yum China Reports First Quarter 2026 Results
• Positive Sentiment: Revenue beat: Total revenue of $3.27B topped consensus ($3.21B), supporting the thesis that demand and store expansion are driving top-line momentum. Yum China’s (NYSE:YUMC) Q1 CY2026: Beats On Revenue
• Positive Sentiment: Expansion and growth commentary: Analyst/coverage pieces highlight record Q1 growth and accelerated store expansion in China, reinforcing medium-term same-store and unit growth expectations. Yum China Delivers Record Q1 Growth and Accelerates Expansion in China
• Positive Sentiment: Dividend announced: Yum China declared a quarterly dividend of $0.29 per share (yield ~2.4%), payable June 17 with a May 27 record/ex-dividend date — adds to shareholder-return appeal alongside the $1.5B repurchase/return plan. (Company announcement)
• Neutral Sentiment: EPS and estimates: EPS of $0.87 was essentially flat with consensus (~$0.88) and beat prior-year EPS ($0.77); net margin improved year-over-year. The EPS miss was marginal while revenue growth and margin expansion were the stronger takeaways. Yum China Holdings (YUMC) Meets Q1 Earnings Estimates
• Negative Sentiment: Large institutional selling: Mondrian sold roughly 5.5 million Yum China shares (~$285M), which represents a significant block and could exert selling pressure or signal profit-taking by a major holder. Mondrian Dumps 5.5 Million Yum China Shares Worth $284.6 Million

Yum China Company 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.