Why Investors Were Feasting on Yum China Stock This Week

According to data compiled by S&P Global Market Intelligence, restaurant chain operator Yum China Holdings' (NYSE: YUMC) stock was a nearly double-digit gainer this week. The company's shares rose by 9% in price across the period, due in no small part to news of encouraging quarterly results, and subsequent analyst price target increases -- and even a recommendation upgrade.Yum China's positive momentum kicked into gear Monday morning, and never really let up. That morning it posted its third-quarter results, revealing that revenue rose by 5% year over year to $3.07 billion, while adjusted net income experienced a meatier improvement with a 19% rise to $297 million ($0.77 per share). Both figures comfortably topped the consensus analyst estimates. Much of the improvement derived from Yum China's aggressive expansion program. During the quarter, the company cut the ribbon on over 400 new restaurants in its system, and their revenue more than mitigated a 3% decline in same-store sales. All told, as of the end of September it had 15,861 restaurants under its wing. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool