Yum China's 2Q Earnings Likely Higher, in Line with Guidance

Dow Jones
Jul 21

0240 GMT - Yum China's 2Q earnings likely rose in line with the company's guidance, despite potential narrowing of its restaurant segment's margin, says Deutsche Bank's Han Zhang in a note. The analyst expects the restaurant operator to report a mid-single-digit percentage rise in revenue from a year earlier, and a high-single-digit percentage increase in operating profit. While the company's restaurant margin could have declined by 0.3 percentage point over the same period on labor cost pressures, the analyst notes continuing cost savings, as Yum China is focused on negotiating for lower rents for new and existing stores. DB reiterates its buy rating and target prices of 476.00 Hong Kong dollars and US$60.70 on Yum China's H shares and ADRs. H shares fall 1.0% to HK$347.60 while ADRs last closed at US$43.93. (megan.cheah@wsj.com)

 

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July 20, 2026 22:40 ET (02:40 GMT)

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