Yum China, a NYSE-listed company, is just about to release its earnings data after the market closes on Tuesday, May 2nd. Industry experts are expecting Yum China to post earnings of $0.43 per share for the quarter, which will be keenly awaited by investors and the broader financial community.
Should you have any interest in participating in the company’s conference call, please use this link to register. All participants will have an excellent opportunity to hear firsthand all details about Yum China’s financials, strategies and future plans.
The appetite for shares in Yum China has never been greater with insiders continuing to sell stocks even as analysts predict extraordinary quarterly revenue figures. Insider Johnson Huang recently sold 10,707 shares of the firm’s stock on Friday, March 3rd at an average price of $62.00 per unit resulting in a total value of $663,834.00.
At present, Huang now owns only 53,268 shares of the company’s stock valued at approximately $3.3 million following that sale. In related news from the same period earlier this year regarding insider trading within Yum China; CEO Joey Wat sold 12,018 shares of company stock worth around $745k on Wednesday February 22nd.
Previously paying out $0.12 as their quarterly dividend amount to its shareholders last time around; however recent announcements suggest that as part of an upward trend for shareholder value experienced by Yum China lately – they will now pay dividends amounting to $0.13 per share paid on Tuesday March 28th and an increase in annualized dividend yield up to 0.84% thus making it a more attractive investment opportunity than before.
In addition,Yum China’s disclosure indicates that up until now corporate insiders have owned only about 0.26% of the company’s stock – something which could lead some investors towards caution when it comes to deciding whether or not to hold shares in the company long term. Nonetheless, the current signs appear positive with analysts anticipating considerable earnings figures for the quarter and Yum China increasing its dividend yield – something that will certainly appeal to investors looking for emerging opportunities in companies at present seeing upward trends in their growth graphs.
Yum China Misses Analysts’ Expectations by One Cent in Quarterly Earnings Report
Yum China, the Chinese division of the well-known fast food company, recently shared its quarterly earnings report which shows that it missed analysts’ expectations by a single cent. The quarter, ending on February 7th, reveals that Yum China’s net margin stood at 4.62% and returned on equity was at 6.09%. The company’s revenue for this period is reported to be $2.09 billion, lower than analysts had previously estimated; they were expecting revenue worth $2.31 billion during this period. On average, Wall Street analysts predict that Yum China will have an EPS (earnings per share) of $2 for both current and next fiscal years.
The company’s shares trade on NYSE under the symbol ‘YUMC’. On Tuesday, when the market opened, shares started trading at $61.55 each with a 50-day moving average of $61.55 and a 200-day moving average of $56.63 respectively. To date, the firm’s lowest trading price observed over the past year has been around $36.05 while its highest peaked at around $64.70 mark within that same year.
In addition to their quarterly financial release statement, multiple research reports have also been conducted about Yum China lately by several organizations giving differing opinions regarding recent performance results published by the company.
OTR Global researchers raised their rating on Yum China from mixed to positive in April whereas StockNews.com considered upgrading YUMC stock from hold to buy earlier this month along with Jefferies Financial Group in January however TheStreet went against OTR and downgraded Yum China’s rating from ‘b’to ‘c+’ marking its divergence from how others judged the prospects of the Company.
As part of its long term strategy for growth in Asia Pacific Region-Restaurant Brands International (RBI), invested $200mn in purchasing a stake in Yum China which operates over 8,700 outlets of Pizza Hut and KFC restaurant chains mainly in China. RBI owns other famous fast food chains like Tim Hortons and Burger King across the world. The Malaysian company is also trying to compete with McDonald’s dominance in the fast food market by opening hundreds of new Tim Hortons and Burger King stores in Asia.