Yum China (YUMC) shares fell 10% after UBS analysts highlighted potential downside risks to the company's Q1 guidance. UBS raised the price target to $54 per share. YUMC previously provided Q1 guidance of relatively flat recurring operating profit. UBS now sees a 13% net profit decline for the company after considering a lower restaurant profit margin and lower general and administrative expense ratio. YUMC has underperformed MSCI China staples and discretionary indexes following the Chinese New Year, suggesting that earnings downside risks have been partially factored in. UBS also observed signs of increasing competition for the company's delivery business [4778548d].