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BofA Lowers Yum China (YUMC) PT, Keeps Buy Rating

Yum China Holdings, Inc. (NYSE:YUMC) is one of the 11 Best Food Stocks to Buy According to Wall Street Analysts. On July 7, BofA Securities reduced its price target for Yum China Holdings, Inc. (NYSE:YUMC) from $60.50 to $56.50 but kept a “Buy” rating.

The firm pointed out that Yum China Holdings, Inc. (NYSE:YUMC) has underperformed the MSCI China index by 16% since Liberation Day. This weaker performance was mainly attributed to investors reassessing the company’s long-term growth after Yum China Holdings, Inc. (NYSE:YUMC) shifted its focus to smaller stores and franchising.

The iconic yellow and red roof of a franchise restaurant in the bustling streets of a city.

BofA’s channel checks showed that Yum China Holdings, Inc.’s (NYSE:YUMC) same-store sales growth (SSSG) was around 0-1% in the second quarter. There were also indications that the performance in June might surpass expectations. BofA also observed sequential delivery order growth of over 10% in the past weekend.

The research note also mentioned that Meituan and Alibaba have started offering strong delivery subsidies. These discounts could help Yum China Holdings, Inc. (NYSE:YUMC) achieve same-store sales growth in the third quarter of 2025, which is usually a busy season for the company. The research firm expects same-store sales to improve in the second half of 2025.

Yum China Holdings, Inc. (NYSE:YUMC) is the largest restaurant company in China, operating more than 16,000 restaurants under 6 brands across more than 2,300 cities. The company operates and franchises restaurants under brands like KFC, Pizza Hut, and Taco Bell.

While we acknowledge the potential of YUMC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than YUMC and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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