0056 GMT - Chinese restaurants' shares still offer long-term value despite near-term headwinds, says Morningstar's Ivan Su in a report. These stocks are trading at steep discounts, with those under Morningstar's coverage at a nearly 40% market-capitalization-weighted discount to their fair-value estimates. This likely reflects concerns about weak consumer sentiment, the analyst says. He cuts his restaurant industry sales growth forecasts for 4Q to 2.8% from 4.8%, citing the government's crackdown on extravagant dining. Still, he expects an eventual rebound in demand and a shift from lower-end offerings as macroeconomic conditions stabilize. Long-term growth prospects remain strong, supported by trends such as rising incomes, he adds. Yum China is Morningstar's top pick, with a fair-value estimate of HK$595.00. Shares last closed at HK$376.00.(megan.cheah@wsj.com)

(END) Dow Jones Newswires

November 26, 2025 19:56 ET (00:56 GMT)

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