Yum China’s share price has gained 6.35% in the last month and is trading at 29.82 euros. Despite the recent growth, the stock price is almost 40% lower than the previous year’s value. However, the price is up almost 14% compared to the 52-week low of EUR 25.66.
Positive business growth despite challenges
Yum China, the operator of fast-food chains such as KFC and Pizza Hut in China, managed to increase its sales by 14.5% to 11 billion euros last year. Annual profit also increased significantly and reached 827 million euros. In response to good business growth, the company raised its dividend for 2024 to 0.64 euros per share, an attractive dividend yield of 1.66%.
The positive development is significant as the Chinese market continues to be characterized by economic uncertainty. Yum China appears to be benefiting from its strong market position and the ongoing trend towards Western fast food in China. For investors, despite recent price gains, the stock remains modestly valued at a P/E ratio of 15 for 2024.
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