10:05 AM EDT, 05/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of USD35 implies a 2024 P/B of 2x, at a discount to Yum China's ( YUMC ) 2019-2023 average P/B of 4.3x, to reflect the short-term slowdown in dine-out traffic amid economic weakness. Besides, we think the increasing trend of healthy eating in China may weigh on YMC's core fast-food businesses. Nevertheless, we see the improved resources allocation supporting YMC's constant tweaks and innovations in its localized menu offerings across different city tiers to drive new sales, and loyalty programs retaining customers. YMC posted Q1 2024 EPS of USD0.72 vs. EPS of USD0.69 in Q1 2023. We reiterate our Hold opinion as we expect YMC to see challenges in adapting to softening and changing consumer spending habits, while its new menu may weaken revenue expansion given lower average selling prices to cater to budget-conscious consumers. We keep our 2024 EPS forecast of USD2.17 and trim our 2025 EPS estimate to USD2.48 from USD2.55.