Research Report Highlights | CICC: Yum China’s Same-Store Sales Expected to Improve Quarter-on-Quarter in Q2, “Outperform” Rating Maintained

Glonghui, June 30 — According to a research report published by CICC, Yum China’s same-store sales in the second quarter are expected to improve quarter-on-quarter, with a slight room for further increase in the full-year operating profit margin. Yum China has announced plans to acquire ownership of the Pizza Hut brand in China. CICC expects this will help increase its earnings per share, enhance operational flexibility, and accelerate brand development. The bank is optimistic about the company’s continued innovation in products and modules, as well as ongoing marketing campaigns to maintain resilient same-store performance. The bank maintains its earnings forecast and its “outperform” rating on Yum China’s US shares, with a target price of $61, corresponding to a forecast adjusted P/E ratio of approximately 21 times and 18 times for 2026 and 2027, respectively.