08:30 AM EDT, 05/06/2025 (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:
We cut our target price to USD47 (from USD52), an implied 2025 P/E of 17.3x (three-year mean: 25x), which reflects moderate earnings growth prospects supported by our projected slower two-year EPS CAGR of 13.8% (vs. three-year CAGR: 23.8%). We see revenue growth picking up to 10% in 2025 on assuming accelerating SSS growth, driven by improving consumer spending in China. We think YUMC will likely continue with its value-for-money offerings and store expansion (2025 target: 1,600-1,800 new stores) to drive sales, while improved cost efficiency and investment gains will offset rising cost pressure, keeping net margin stable at about 8% in 2025/2026, in our view. With over 540 million loyalty members providing valuable consumer insights, YUMC's digital capabilities will also enhance customer acquisition through targeted marketing, improve operational efficiency via data-driven decisions, and increase average ticket sizes through personalized upselling. We keep our 2025/2026 EPS forecast at USD2.72/USD2.97