Macquarie analyst Linda Huang lowered the price target on Yum China Holdings (NYSE: YUMC) to $55.00 (from $56.00) while maintaining a Outperform rating.

The analyst commented, "We estimate YUMC will deliver 4.7% revenue growth in 1Q26, with respective same-store sales growth (SSSg) of 2%/1% for KFC/Pizza Hut. We estimate 5.4% YoY operating profit growth for 1Q26, though we model a 1.5% YoY dip in net profit as we assume a market investment loss. Maintain Outperform as we believe Yum China can expand its footprint while increasing penetration with new formats."