Yum China maintains the target of opening 1,500 to 1,700 new stores throughout the year and a capital expenditure plan of 0.7 billion to 0.85 billion US dollars.
The Zhitong Finance App learned that Bank of China International released a research report saying that the restaurant industry has strong procyclical characteristics, and policy incentives are beneficial to rising valuations of related companies such as Yum Sheng China (09987). Looking forward to the future, if the policy is smoothly transmitted to the consumer side after implementation, the revenue and profits of domestic catering companies are expected to improve. The bank chose Yum China and gave it a “buy” rating. The group's EBITDA is expected to grow at a three-year compound annual growth rate of 9%.
Bank of China International said that as a leading domestic restaurant chain, Yum China has outstanding brand appeal in the mass market, and the pace of expansion is steady. The bank estimates that in the third quarter of this year, the company's system sales (excluding exchange rate changes) should increase by a higher number of units year on year, and the operating profit margin improved by nearly 0.5 percentage points year on year. Maintain the annual target of 1,500 to 1,700 new stores and a capital expenditure plan of 0.7 billion to 0.85 billion US dollars.
