Jefferies Upgrades Yum China Holdings to "Buy" with Increased Price Target

Font: Financial Modeling Prep  • Feb 05, 2026

• Jefferies upgraded Yum China Holdings (NYSE:YUMC) to a "Buy" rating and raised the price target from $58.75 to $63.64.
• Yum China reported earnings of $0.40 per share for the fourth quarter, surpassing the Zacks Consensus Estimate by 14.29%.
• The company's revenues reached $2.82 billion for the quarter, exceeding consensus estimates by 3.01%.

On February 4, 2026, Jefferies updated its rating for Yum China Holdings (NYSE:YUMC) to a "Buy" recommendation. At the time, the stock was priced at $53.14. Jefferies also raised the price target for Yum China from $58.75 to $63.64. Yum China is a major player in the restaurant industry, operating popular brands like KFC and Pizza Hut in China.

Yum China reported strong financial results for the fourth quarter, with earnings of $0.40 per share. This exceeded the Zacks Consensus Estimate of $0.35 per share, resulting in a 14.29% earnings surprise. Compared to the previous year's earnings of $0.30 per share, Yum China has demonstrated significant growth, reinforcing Jefferies' positive outlook.

The company also reported revenues of $2.82 billion for the quarter ending December 2025. This figure surpassed the Zacks Consensus Estimate by 3.01% and showed an increase from the $2.6 billion reported in the same quarter the previous year. Over the past four quarters, Yum China has consistently outperformed consensus revenue estimates three times, highlighting its strong market position.

The stock for YUMC, listed on the NYSE, is currently priced at $53.14, reflecting a price increase of $2.40 or 4.73%. Today, the stock has fluctuated between a low of $50.40 and a high of $53.41. Over the past year, YUMC has reached a high of $53.99 and a low of $41, indicating a positive trend in its stock performance.

Yum China's market capitalization stands at approximately $18.79 billion, with a trading volume of 1,968,030 shares. This substantial market cap and trading volume reflect investor confidence in the company's growth prospects, further supported by Jefferies' updated "Buy" recommendation and increased price target.