Technical Analysis: YUMC's recent price action shows a bearish trend with RSI at 48.36 indicating neutral momentum. The stock is trading between Bollinger Bands with BBP at 0.45, suggesting potential downside risk. MACD line (0.47) crossing below signal line indicates weakening momentum.
News Impact:
Price Prediction for Next Week (Feb 24-28, 2025): Based on Fibonacci levels and technical indicators:
Target price range for next week:
Recommendation: SELL
The price of YUMC is predicted to go up 63.01%, based on the high correlation periods with URG. The similarity of these two price pattern on the periods is 96.27%.
YUMC
URG
Average unit volume (USD 1.3 million before covid-19), pretax cash payback periods (between 2-3 years), and cash-on-cash returns (roughly 20%) for new KFC China units exceed the economics of most chains in the region.
We see several top-line growth drivers, including value platforms, smaller/alternative restaurant formats, digital ordering/marketing, delivery, and nascent brands like Lavazza, Taco Bell, and Huang Ji Huang.
Wage hikes, urbanization trends, and relatively young populations should continue to drive restaurant spending across China.
JP Morgan
2024-11-05
Price Target
$36 → $60
Upside
+24.12%