Tiger Brokers

Yum China's Profit Growth Likely Boosted by New Stores, Margin Gains -- Market Talk

Dow Jones
Feb 06

0643 GMT - Yum China's net profit growth over 2026-2028 is likely to be driven by new store openings and margin improvements, say CGS International analysts in a note. The restaurant operator's 4Q results beat the analysts' expectations, thanks to better cost-saving measures and operational efficiency. Early signs of improving consumer sentiment in 1Q could boost same-store sales growth, the analysts add, citing management's outlook. The brokerage raises its 2026 and 2027 earnings per share projections by 5.0%-6.3% to reflect higher margin estimates. CGSI therefore raises its target price to HK$460.00 from HK$438.00 while maintaining its add rating. Shares fall 2.0% to HK$428.60. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

February 06, 2026 01:43 ET (06:43 GMT)

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