Yum China Holdings posted second-quarter 2026 adjusted earnings of 70 cents per share, up 21% year over year and beating the Zacks Consensus Estimate of 69 cents, while revenue rose 13% to $3.14 billion. The stock trades at 14.55 times forward earnings, below the restaurant sub-industry multiple of 22.96 and its own five-year median of 19.35. The company plans more than 1,900 net new store openings in 2026 and expects its total count to exceed 20,000 units during the year. Yum China intends to return $1.5 billion to shareholders in 2026 and distribute 100% of annual free cash flow after minority dividend payments beginning in 2027. However, the $49 price target implies only modest upside from the $46.47 share price as of July 30, 2026, while delivery-cost pressure and a 3% decline in KFC's average ticket present headwinds.
Yum China Holdings IncEarnings beat and low valuation, with plans for store growth and shareholder returns
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