Yum China continues its expansion

Article Excerpt

YUM CHINA HOLDINGS INC. $45 is a buy for aggressive investors. The company (New York symbol YUMC; Aggressive Growth Portfolio, Consumer Sector; Shares outstanding: 391.0 million; Market cap: $17.6 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.4%; TSINetwork Rating: Average; www.yumchina.com) is China’s largest fast-food operator with over 15,800 outlets, mainly under the KFC and Pizza Hut banners. Despite slowing economic growth in China, it still expects to reach 20,000 outlets by 2026. Yum China also continues to simplify its menus and expand its digital ordering platforms. As a result, the company’s earnings will probably rise 16% in 2025 to $2.32 a share, and the stock trades at a reasonable 19.4 times that forecast. The $0.64 dividend yields 1.4%. Yum China is a buy for aggressive investors. investors…