SPY386.54-3.04 -0.78%
DIA314.19-1.40 -0.44%
IXIC13,358.79-230.04 -1.69%

DJ Yum China's Rapid Expansion Could Boost Earnings Growth -- Market Talk

· 02/05/2021 00:45

0545 GMT - Yum China's expansion strategy may be a long-term driver for earnings growth, Nomura says. The fast-food conglomerate aims to open 1,000 stores in 2021 and is focused on growing its coffee business under three separate brands. Yum China's push into delivery services could also capture consumer demand, the Japanese investment bank says. A key growth driver may be Yum China's KFC brand expanding to lower-tier Chinese cities, Nomura adds, as it raises its target price on the company's H-shares to HK$537.90 from HK$482.80 and maintains a buy rating. Shares fall 1.1% to HK$433.40. (yiwei.wong@wsj.com)

(END) Dow Jones Newswires

February 05, 2021 00:45 ET (05:45 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.