Yum China Holdings, Inc. (NYSE:YUMC) Just Released Its Half-Yearly Earnings: Here's What Analysts Think

Last week saw the newest half-yearly earnings release from Yum China Holdings, Inc. (NYSE:YUMC), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of US$5.8b were in line with what the analysts predicted, Yum China Holdings surprised by delivering a statutory profit of US$0.58 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Yum China Holdings' 31 analysts are now forecasting revenues of US$11.8b in 2025. This would be a satisfactory 2.9% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$2.52, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$11.8b and earnings per share (EPS) of US$2.50 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Yum China Holdings

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$58.81. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Yum China Holdings at US$76.00 per share, while the most bearish prices it at US$53.10. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Yum China Holdings shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.8% growth on an annualised basis. That is in line with its 6.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.7% annually. So although Yum China Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Yum China Holdings analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Yum China Holdings is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.