---
title: "Morgan Stanley: YUM China’s growth momentum continues in the third quarter, rating \"Overweight\""
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294472851.md"
description: "Morgan Stanley released a research report stating that YUM China’s same-store sales target for the third quarter is showing positive growth, with July performance meeting the company's expectations. The accelerated store expansion brings greater growth potential, reaffirming its \"Overweight\" rating on YUM China’s U.S. stock, with a target price maintained at $60, considering it a preferred stock. Morgan Stanley adjusted its earnings forecast for 2026 to 2028 by up to 1% to reflect a faster pace of store openings, which does not yet account for the potential impact of the Pizza Hut acquisition. It believes the current valuation is attractive, predicting a compound annual growth rate of operating profit and earnings per share of 10% and 15%, respectively, from 2025 to 2027"
datetime: "2026-07-31T07:40:05.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294472851.md)
  - [en](https://longbridge.com/en/news/294472851.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294472851.md)
---

# Morgan Stanley: YUM China’s growth momentum continues in the third quarter, rating "Overweight"

According to Zhitong Finance APP, Morgan Stanley released a research report stating that Yum China (09987) achieved positive growth in same-store sales for the third quarter, with July performance meeting the company's expectations. The accelerated store expansion brings greater growth potential, reaffirming its "Overweight" rating on Yum China (YUMC.US) in the US stock market, with a target price maintained at $60, considering it a preferred stock. Morgan Stanley adjusted its earnings forecast for 2026 to 2028 by up to 1% to reflect a faster pace of store openings, which does not yet account for the potential impact of the Pizza Hut acquisition. They believe the current valuation is attractive, predicting a compound annual growth rate of operating profit and earnings per share of 10% and 15%, respectively, from 2025 to 2027

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