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Yum China 4Q Sales Likely Supported by KFC, Pizza Hut Brands -- Market Talk

0510 GMT - Yum China's 4Q sales likely grew 7% on year, supported by its KFC and Pizza Hut brands, Jefferies analysts say in a research note. They expect a decline in same-store sales for KFC and Pizza Hut in 1Q due to a high base last year and store openings in higher-tier cities. The analysts reckon that whether rising local players, such as Tastien, will become a threat in the long term depends on their product innovation and supply-chain capability. As a leader in China's quick-service restaurant sector, Yum China benefits from its scale and strong cash flow, they note. Jefferies maintains its buy rating and HK$510.70 target price on the stock. Yum China's H shares are 3.4% lower at HK$325.20.

Yum China 4Q Sales Likely Supported by KFC, Pizza Hut Brands -- Market Talk

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The analysts reckon that whether rising local players, such as Tastien, will become a threat in the long term depends on their product innovation and supply-chain capability. As a leader in China's quick-service restaurant sector, Yum China benefits from its scale and strong cash flow, they note. Jefferies maintains its buy rating and HK$510.70 target price on the stock. Yum China's H shares are 3.4% lower at HK$325.20. 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