Group 1 - The article emphasizes a fundamentals-based approach to value investing, highlighting that low multiple stocks are not necessarily cheap and that long-term durability at affordable prices is crucial [1] - The focus is on companies with steady long-term growth, no cyclicality, and a robust balance sheet, indicating a preference for stability in investment choices [1] - There is an acknowledgment of the risks involved in investing in successful companies, particularly the potential of overpaying, which underscores the importance of valuation [1] Group 2 - An update on Yum China Holdings (NYSE: YUMC) is provided, reiterating a previous buy recommendation based on solid management execution [2] - The article does not provide specific financial metrics or performance data for Yum China Holdings, focusing instead on management's execution as a key factor for investment consideration [2] - There is a disclaimer regarding the lack of compensation for the article and the absence of any stock positions in the companies mentioned, ensuring transparency in the analysis [3]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Yum China Holdings (YUMC) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 5.7%, but projected EPS growth for this year is expected to be 16.5%, significantly higher than the industry average of 2.4% [5] Group 2: Financial Metrics - Yum China's asset utilization ratio is 0.96, indicating that the company generates $0.96 in sales for every dollar in assets, surpassing the industry average of 0.95 [6] - The company's sales are projected to grow by 3.7% this year, compared to the industry average of 2% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Yum China, with the current-year earnings estimates increasing by 4.4% over the past month [8] - Yum China has achieved a Growth Score of B and a Zacks Rank of 2 due to these positive earnings estimate revisions [10] Group 4: Investment Potential - The combination of strong earnings growth, efficient asset utilization, and positive earnings estimate revisions positions Yum China as a potential outperformer and a solid choice for growth investors [12]

Core Insights - Yum China has launched a digital supplier recruitment platform to enhance its supply chain network, inviting high-quality global enterprises to participate [1][2] - The platform represents a shift to a more dynamic, interactive, and data-driven supplier selection process, reducing manual workload and promoting transparency [2][3] - Since its pilot launch in April 2024, the platform has attracted applications across over 30 categories, covering more than a third of the company's total categories [3] Company Initiatives - The launch of the platform is part of Yum China's "Spend Better, Buy Better" initiative aimed at improving efficiency and connecting with high-quality suppliers [3] - Agreements of intent were signed with both domestic and international companies to focus on sourcing and product innovation, enhancing culinary experiences for customers [4] Supply Chain Management - Yum China has developed a world-class supply chain management system with over 800 core suppliers across various categories, including food ingredients and logistics [5] - The company employs innovative procurement strategies to provide safe and diverse menu options tailored to the preferences of Chinese consumers [5] Company Overview - Yum China is the largest restaurant company in China, operating over 15,000 restaurants under six brands and employing approximately 400,000 people [8] - The company aims to be a pioneer in the restaurant industry, leveraging strong digital capabilities and a loyalty program to enhance customer engagement [8]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Yum China (YUMC) as a strong value stock based on various financial metrics [1][2][7]. Company Summary - Yum China (YUMC) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4]. - The stock is trading with a P/E ratio of 18.58, significantly lower than the industry average P/E of 26.71, suggesting it may be undervalued [4]. - YUMC's Forward P/E has fluctuated between 12.52 and 22.62 over the past year, with a median of 16.85, indicating variability in market perception [4]. - The company has a PEG ratio of 1.54, which is lower than the industry average PEG of 1.90, further supporting the notion of undervaluation [5]. - YUMC's PEG has ranged from 0.84 to 1.92 in the past 52 weeks, with a median of 1.32, reflecting its earnings growth expectations [5]. - The P/CF ratio for YUMC is 13.45, compared to the industry average of 23.36, indicating a favorable cash flow outlook [6]. - Over the past 12 months, YUMC's P/CF has varied between 8.79 and 15.10, with a median of 12.23, reinforcing its undervalued status [6]. - Overall, the financial metrics suggest that Yum China is likely undervalued and stands out as one of the market's strongest value stocks [7].

Core Viewpoint - Yum China Holdings (YUMC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Performance and Projections - For the fiscal year ending December 2024, Yum China is expected to earn $2.33 per share, reflecting a 16.5% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Yum China has increased by 5%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, suggesting superior earnings estimate revisions [9][10]. - The upgrade of Yum China to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating potential for market-beating returns in the near term [11].

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility. Yum China Holdings (YUMC) is highlighted as a recommended growth stock based on its favorable growth prospects and strong Zacks Rank [1][2]. Group 1: Earnings Growth - Yum China's historical EPS growth rate is 5.7%, but projected EPS growth for this year is 15.5%, significantly higher than the industry average of 5.4% [5]. Group 2: Asset Utilization - Yum China has an asset utilization ratio (sales-to-total-assets ratio) of 0.96, indicating it generates $0.96 in sales for every dollar in assets, which is better than the industry average of 0.95 [6]. Group 3: Sales Growth - The company's sales are expected to grow by 3.8% this year, surpassing the industry average growth of 2.6% [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Yum China, with the Zacks Consensus Estimate for the current year increasing by 4.1% over the past month [8]. Group 5: Overall Positioning - Yum China has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance in the growth investment space [9].

The company's third-quarter performance inspired one analyst to upgrade his recommendation on the shares.According to data compiled by S&P Global Market Intelligence, restaurant chain operator Yum China Holdings' (YUMC -4.18%) stock was a nearly double-digit gainer this week. The company's shares rose by 9% in price across the period, due in no small part to news of encouraging quarterly results, and subsequent analyst price target increases -- and even a recommendation upgrade.Expansion program spurs top-l ...

Have you been paying attention to shares of Yum China Holdings (YUMC) ? Shares have been on the move with the stock up 8.8% over the past month. The stock hit a new 52-week high of $52 in the previous session. Yum China Holdings has gained 21.3% since the start of the year compared to the 26.8% move for the Zacks Retail-Wholesale sector and the 7.2% return for the Zacks Retail - Restaurants industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't m ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _________________ Commission file number 001-37762 Yum China Holdings, Inc. (Exact Name of Registrant as Specified in Its Charter) Delawa ...

Yum China Holdings, Inc. (YUMC) reported third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same.  The top and bottom lines increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Following the results, shares of the company gained 7.2% during trading hours on Nov. 4. Positive investor sentiments were witnessed as the company emphasized its commitment to returning capital to its shareholders while susta ...