5 Best Coffee Stocks to Invest In

4. Yum China Holdings, Inc. (NYSE:YUMC)

Number of Hedge Fund Holders: 34

Yum China Holdings, Inc. (NYSE:YUMC) ranks 4th on the list of 10 best coffee stocks to invest in. The Texas-based fast-food restaurant operator was founded in 2016. Yum China Holdings, Inc. (NYSE:YUMC) operates restaurant brands such as KFC, Pizza Hut, Taco Bell, and COFFii & JOY.

In 2020, Yum China Holdings, Inc. (NYSE:YUMC) entered a partnership with Italian coffee company Lavazza Group. Yum China Holdings, Inc. (NYSE:YUMC) will help Lavazza expand its operations in China, where they have already launched their first flagship store outside of Italy in Shanghai. Yum China Holdings, Inc. (NYSE:YUMC) has soared 18% in the last twelve months. 

Goldman Sachs analyst Michelle Cheng raised Yum China Holdings, Inc.’s (NYSE:YUMC) price target to $77 from $74 per share and kept his Buy rating. The analyst mentioned that she is confident of store recoveries from strong proven management track records.

The company has a market cap of $26.03 billion and offers a dividend yield of 0.78%. In the second quarter of 2021, Yum China Holdings, Inc. (NYSE:YUMC) reported an adjusted EPS of $0.42, missing estimates of $0.44. The company’s second-quarter revenue came in at $2.45 billion, a 29% increase from the same period of 2020.

There were 34 hedge funds that reported owning stakes in Yum China Holdings, Inc. (NYSE:YUMC) at the end of the first quarter. The total value of these stakes at the end of Q1 is $975 million.