Yum China Holdings (YUMC) PT Raised to $59 at UBS

UBS analyst Christine Peng raised the price target on Yum China Holdings (NYSE: YUMC) to $59.00 (from $57.26) while maintaining a Buy rating.

The analyst comments: "Investors question whether Yum China (YUMC) can expand store count beyond its 2026 target of 20,000. Using UBS Evidence Lab data on restaurant locations, our scenario analysis indicates growth to 30,000 stores by 2030E based on the share of franchise stores reaching c30%, double the 2024 level. We think consensus underappreciates the capital efficiency benefits of the shift to a franchise model. We expect franchising-driven store expansion to drive cash flow generation at 12% CAGR over 2026-30E, which should ensure consistently high shareholder returns."

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