Morgan Stanley's report pointed out that due to slightly lowered revenue forecast for Yum China (09987.HK), its earnings per share for this year have been adjusted down 2% to reflect the continued low consumer sentiment in the second quarter and lower growth in same-store sales.

The bank's earnings per share forecast for Yum China in 2025 and 2026 fell by 4% and 6% respectively, mainly due to the lower base in 2024 and the bank's more conservative gross margin forecast taking into account potential promotional activities. In addition, the bank's target price for Yum China (YUMC.US) has been lowered from $61 to $56, and the rating is "hold".