Yum China Holdings (YUMC) Continues to Draw Analyst Attention Following Share Repurchase Agreements

Yum China Holdings, Inc. (NYSE:YUMC) is one of the best restaurant stocks to buy now.

On December 12, 2025, Yum China Holdings, Inc. (NYSE:YUMC) successfully reinforced its shareholder return narrative by announcing share repurchase agreements in the U.S. and Hong Kong. The agreements totaled approximately $460 million for the first half of 2026, with purchases set to begin on January 12, 2026. About $350 million under a Rule 10b5-1 program in the U.S. and roughly HK$800 million under a similar program in Hong Kong are included in the agreements.

The initiative is part of Yum China Holdings, Inc.’s (NYSE:YUMC) plan to return $1.5 billion to shareholders in 2026 through dividends and buybacks. The repurchases are equivalent to around 9% of market capitalization as of December 11, 2025. Management expects $4.5 billion to be returned to shareholders through this plan from 2024 to 2026. Starting in 2027, the company expects to return approximately 100% of annual free cash flow, with average returns of $900 million to over $1 billion in 2027-2028.

Amid these developments, Yum China Holdings, Inc. (NYSE:YUMC) continues to draw analyst attention, with Daiwa reiterating a “Buy” rating on the stock with a HK$450 price target on December 16, 2025. Prior to this, in November, the company was revisited by CLSA, which reiterated its “Outperform” rating but reduced its price target from $56 to $55. The update followed the company’s investor day and reflected better-than-expected store growth, mid-single-digit top-line expectations, and the potential for dividend increases starting in 2027.

Yum China Holdings, Inc. (NYSE:YUMC), China’s largest restaurant company, operates and franchises over 17,000 locations across 2,500 cities under brands including KFC, Pizza Hut, and Taco Bell.

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