Yum China Holdings, Inc. (YUMC) is scheduled to report fourth-quarter 2024 results on Feb. 6, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 13.2% and rose 17% year over year. Total revenues marginally missed the consensus mark by 0.3% but grew 5.4% from the year-ago quarter.YUMC’s earnings surpassed expectations in each of the trailing four quarters, the avera ...

Company Recognition and Ranking - Yum China has been named a "2025 China Top Employer" for the seventh consecutive year, ranking second overall among 156 companies in China, up from fourth last year, and first in the restaurant industry [1] Employee-Centric Philosophy - The company's "People First" philosophy is reflected in its supportive workplace and employee empowerment initiatives [2] - Yum China is committed to using new technologies to support employees and promote sustainable business growth, including AI for demand forecasting, inventory management, and crew scheduling [3] - The company launched the "Comprehensive Talent Development" program in 2024, offering technology-enhanced learning and development support for employees at all career stages [3] - AI-Generated Content (AIGC) is used in employee services, such as the AIGC-enabled "MyService" platform, which provides 24/7 HR support [3] Recruitment and Talent Attraction - Yum China introduced a metaverse space for its management trainee recruitment program in 2024, making the process more engaging and interactive [4] - The company's "gamified" online and offline interviews have been well-received by Gen Z candidates [4] Employee Well-Being and Benefits - The company plans to expand its "YUMC Care" benefits program in 2025, including increased medical coverage for over 10,000 frontline restaurant managers and broadening its mutual aid fund [5] - Employee well-being remains a cornerstone of Yum China's "People First" philosophy [5] Recognition of Restaurant General Managers (RGMs) - Yum China hosted its annual RGM Convention in Hong Kong in December, welcoming over 11,000 RGMs, aligning with its "RGM No 1" principle [6] Future Focus - The company remains focused on improving employee engagement and well-being, incorporating feedback from initiatives like employee surveys and the RGM Convention [7] Company Overview - Yum China is the largest restaurant company in China, operating over 15,000 restaurants under six brands across approximately 2,200 cities, with around 400,000 employees [10] - Key brands include KFC, Pizza Hut, Lavazza, Little Sheep, Huang Ji Huang, and Taco Bell [10] - The company has a digitalized supply chain and strong digital capabilities, including a loyalty program to enhance customer service [10]

Core Viewpoint - Yum China Holdings, Inc. will report its unaudited financial results for the fourth quarter and fiscal year ending December 31, 2024, on February 6, 2025, before the U.S. market opens [1] Group 1: Earnings Conference Call - Yum China's management will hold an earnings conference call at 7:00 a.m. U.S. Eastern Time on February 6, 2025 [2] - A live webcast of the call will be available, and participants must register in advance to receive dial-in numbers and a unique access PIN [2][3] Group 2: Company Overview - Yum China is the largest restaurant company in China, operating over 15,000 restaurants under six brands across approximately 2,200 cities [4] - The company employs around 400,000 individuals and includes leading brands such as KFC and Pizza Hut in the quick-service and casual dining sectors, respectively [4] - Yum China has a digitalized supply chain and strong digital capabilities, enhancing customer reach and service [4]

ESG Achievements - Yum China ranked number one globally in the Restaurant & Leisure Facilities Industry in the S&P Global 2024 Corporate Sustainability Assessment (CSA) [1] - The company has been included in both the Dow Jones Sustainability Indices (DJSI): World Index and Emerging Market Index for the fifth consecutive year [1] - Yum China is the only company from the Chinese mainland in the consumer services industry included in the DJSI World Index [2] - The company improved its overall CSA score by 5 points compared to the previous year, ranking in the top 1% in 15 out of 24 evaluation criteria [2] - Yum China maintained its AA rating in the MSCI ESG ratings for the third consecutive year, remaining the only restaurant company worldwide with this distinction [3] Sustainability Initiatives - Yum China scaled up the use of renewable energy in its stores and logistics centers, engaged suppliers to adopt renewable energy, and reduced the use of plastic and paper in packaging [5] - The company established a nationwide coffee ground recycling network and was awarded the "Gold Award" for Recycling and Circular Utilization Solutions at the 2024 International Packaging Innovation Forum (IPIF) [5] Company Overview - Yum China is the largest restaurant company in China with approximately 400,000 employees and over 15,000 restaurants across around 2,200 cities [8] - The company operates six brands, including KFC, Pizza Hut, Lavazza, Little Sheep, Huang Ji Huang, and Taco Bell [8] - Yum China has a world-class, digitalized supply chain with an extensive network of logistics centers and an in-house supply chain management system [8] - The company is a Fortune 500 company with a vision to be the world's most innovative pioneer in the restaurant industry [8]

Core Viewpoint - Yum China has been upgraded to a Zacks Rank 2 (Buy), indicating an improvement in the company's earnings outlook, which is expected to drive stock price appreciation [4][5]. Earnings Estimates - Yum China is projected to earn $2.33 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 16.5% [7]. - Over the past three months, the Zacks Consensus Estimate for Yum China has risen by 5% [11]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [10]. - Yum China's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for near-term stock price increases [3][18]. Market Dynamics - The relationship between earnings estimate revisions and stock price movements is strong, with institutional investors playing a significant role in this dynamic [9][15]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating [17].

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].