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Yum China's Response to Concerns over Pizza Hut Deal Key to Boosting Sentiment

Dow Jones
Jul 22

0138 GMT - Yum China's response to investors' concerns over its Pizza Hut China acquisition could be key to boosting sentiment for its stock, say Citi analysts in a note. Yum China agreed earlier this year to buy Pizza Hut's mainland China business for $1.2 billion. Investors' concerns over the deal include reduced financial resilience of Yum China's overall operations and limited room for future margin improvement, the analysts say. They reckon that alleviating these concerns could help improve sentiment on Yum China after its 2Q results. Citi retains a buy rating and 351.00 Hong Kong dollar target price on Yum China's Hong Kong shares. Shares fall 2.2% to HK$340.60 and are around 7.3% lower year to date. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

July 21, 2026 21:38 ET (01:38 GMT)

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