Yum China's robust 4Q24 performance, innovative store formats, and value strategies are driving growth and margin expansion.

Recently, the firm has been leaning into its scale-driven cost advantage to emphasize its value offerings amid a challenging consumption spending environment. We view this strategy as prudent.

This should drive the firm's earnings growth in the future. Early signs point to a steadily improving operating environment for the Chinese restaurant industry. As a market leader, Yum China is ...