Yum China Holdings, Inc. (NYSE:YUMC) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to US$44.04 in the week after its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at US$3.0b, statutory earnings were in line with expectations, at US$0.77 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Yum China Holdings after the latest results.

We've discovered 2 warning signs about Yum China Holdings. View them for free.

Following the latest results, Yum China Holdings' 33 analysts are now forecasting revenues of US$11.8b in 2025. This would be a reasonable 4.3% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$2.50, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$11.9b and earnings per share (EPS) of US$2.52 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Yum China Holdings

There were no changes to revenue or earnings estimates or the price target of US$59.13, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Yum China Holdings, with the most bullish analyst valuing it at US$76.00 and the most bearish at US$52.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 5.7% growth on an annualised basis. That is in line with its 6.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10.0% 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Yum China Holdings going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Yum China Holdings that you should be aware of.

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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.