Yum China price target lowered to $55 from $56 at Macquarie

Macquarie lowered the firm’s price target on Yum China (YUMC) to $55 from $56 and keeps an Outperform rating on the shares. The firm estimates that Yum China will deliver 4.7% revenue growth in Q1, with respective same-store sales growth of 2% for KFC and 1% for Pizza Hut. The firm also estimates 5.4% year-over-year operating profit growth for Q1, though it models a 1.5% year-over-year decline in net profit as the firm assumes a market investment loss. Macquarie added that it believes Yum China can expand its footprint while increasing penetration with new formats.