Latest news with #YumChina
Yahoo
15-07-2025
- Business
- Yahoo
3 Reasons Why Growth Investors Shouldn't Overlook Yum China (YUMC)
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks. Yum China Holdings (YUMC) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). Here are three of the most important factors that make the stock of this restaurant operator in China a great growth pick right now. Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Yum China is 12.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 6.8% this year, crushing the industry average, which calls for EPS growth of 6.6%. Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. Right now, Yum China has an S/TA ratio of 1, which means that the company gets $1 in sales for each dollar in assets. Comparing this to the industry average of 0.97, it can be said that the company is more efficient. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Yum China looks attractive from a sales growth perspective as well. The company's sales are expected to grow 2.7% this year versus the industry average of 2.5%. Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The current-year earnings estimates for Yum China have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month. Yum China has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination positions Yum China well for outperformance, so growth investors may want to bet on it. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yum China (YUMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
08-07-2025
- Business
- Yahoo
Yum China Pilots AI Assistant for Restaurant Management
Yum China Holdings Inc. (NYSE:YUMC) is one of the most undervalued large cap stocks to buy according to analysts. On June 20, Yum China commenced a pilot program for Q-Smart, which is an AI-enabled assistant designed for enhanced restaurant management. The tool is currently undergoing trials at select KFC outlets. Q-Smart offers support for daily operational tasks, like inventory management and labor scheduling. The system uses natural language processing to enable direct voice commands and facilitates hands-free interactions through wearable devices like wireless earphones and smartwatches. The iconic yellow and red roof of a franchise restaurant in the bustling streets of a city. The Q-Smart launch was unveiled at Yum China's first-ever AI Day event in Shanghai on the said date. During the event, the CEO of the company, Joey Wat, announced the establishment of a 100 million yuan (~$13.9 million) Frontline Innovation Fund, which aims to support frontline restaurant employees and fuel technological innovation, like making the 'All-Staff Hackathon,' launched in March this year with ~200 participating teams. Yum China Holdings Inc. (NYSE:YUMC) owns, operates, and franchises restaurants in China. While we acknowledge the potential of YUMC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
South China Morning Post
06-07-2025
- Business
- South China Morning Post
KFC, Pizza Hut operator Yum China embraces AI to boost efficiency, profitability
Yum China Holdings , the operator of KFC and Pizza Hut restaurants in mainland China, will further embrace artificial intelligence (AI) to improve operating efficiency and profitability and allow its store managers to focus on customer service. The firm, which introduced its Q-Smart AI-powered assistant in June, was expected to help reduce waste, improve quality and save labour costs, chief technology officer (CTO) Leila Zhang said in an interview. The AI-powered system could help with staff scheduling, inventory replenishment and meal preparation, she added. 'When we think about AI and robotics, one of our primary considerations is to empower our restaurant managers,' she said. 'We develop systems and AI-powered digital tools to allow them to work more efficiently, freeing up more of their time so they can focus on delivering exceptional customer service.' Yum's Q-Smart management system was able to monitor sales data, adjust preparation plans, and remind staff to confirm orders, Zhang said, a move in line with its past pioneering efforts. Yum China was the first mainland fast-food chain to adopt digital payment systems in 2015. A couple walks out of a KFC restaurant in Chongqing in February 2025. Digital ordering accounted for about 90 per cent of its total sales last year, helped by a loyalty membership programme that had 540 million consumers in mainland China as of March 31. It opened 247 net new stores in the first quarter this year, bringing the total to 16,642 nationwide. Yum China reported a 1 per cent increase in sales to US$2.98 billion in the first quarter from a year earlier, while adjusted net income rose 1.7 per cent to US$292 million. Annual sales in 2024 of US$11.3 billion were the highest since at least 2016.
Yahoo
23-06-2025
- Business
- Yahoo
UBS Ups Price Target on Yum China (YUMC) to $59, Sees Room for Aggressive Expansion
UBS raised its price target on Yum China Holdings (NYSE: YUMC) from $57.26 to $59.00 a few days earlier, while maintaining its Buy rating on the stock. The upward revision implies increasing confidence in Yum China's long-term expansion prospects, particularly through an increasingly franchise-driven model. According to the firm's analysis, supported by UBS Evidence Lab data tracking restaurant locations across China, Yum China Holdings (NYSE: YUMC) is positioned to exceed its current goal of 20,000 stores by 2026. UBS now sees the company potentially reaching 30,000 locations by 2030. A chef holding up a newly created dish, showcasing the creativity of the restaurant's menu offerings. A key component of this expansion is the shift toward franchising. UBS projects that by 2030, franchise stores will make up approximately 30% of the company's total, a sharp rise from 2024 levels. This transition is expected to unlock considerable capital efficiency benefits, which UBS believes are not fully reflected in current market expectations. The firm also forecasts that this expansion model will support compound annual cash flow growth of 12% from 2026 through 2030. Such performance, in UBS's view, should enable Yum China to deliver consistently strong shareholder returns over the latter half of the decade -- a key factor behind the decision to reaffirm the Buy rating. Previously we shared . While we acknowledge the potential of YUMC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
23-06-2025
- Business
- Yahoo
Yum China pilots AI-enabled restaurant management tool
Yum China has launched a pilot of Q-Smart, an AI-enabled assistant for restaurant management. The tool assists with inventory, labour scheduling and food safety, offering intelligent support for decision-making in various operational aspects. It enables hands-free interaction through wearable devices, allowing managers to perform tasks without the need to engage with touch screens or PCs physically. Q-Smart leverages natural language processing to facilitate direct communication with restaurant managers, aiding in the management of daily operational tasks. It monitors inventory levels, aligns them with sales forecasts and prompt managers to make timely decisions on ordering and replenishment. The assistant can also respond to voice commands, enabling managers to conduct equipment inspections and inventory counts while drawing from the chain's knowledge base for real-time support and solutions for urgent issues. Q-Smart is currently undergoing trials at selected KFC outlets. The pilot phase will gather feedback from the users for future enhancements. Yum China chief technology officer Leila Zhang: 'We believe that Q-Smart will not only help Yum China improve its operational efficiency, but can also serve as an example for the digital transformation and smart development of the catering industry." Yum China noted that it has been integrating AI tools into its operations since 2019, including the AI-powered "Super Brain" and handheld Pocket Managers for real-time operational tracking. In 2023, the brand began exploring generative AI applications, and by 2024 was integrating these into customer service, logistics and back-office functions. At its AI Day opening ceremony, CEO Joey Wat announced the formation of a $13.9m Frontline Innovation Fund to support restaurant employees and fuel technological innovation. This initiative includes making the All-Staff Hackathon a routine annual event. In 2024, Yum China, Italian coffee manufacturer Lavazza, and super-sports car producer Automobili Lamborghini partnered to launch a co-branded drink in China. "Yum China pilots AI-enabled restaurant management tool" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
