Barrons·4 days ago
Global Brands Struggle in China. Local Partners Are Stepping In.Foreign consumer companies aren't leaving China. They're giving up more control to local operators who can move faster and read the market better.
Yum China Holdings, Inc.(YUMC)Earnings, Financials & Key Ratios
YUMC•NYSE
$42.22
16.9× P/E·Price updated Jul 7, 2026
AboutYum China Holdings, Inc. owns, operates, and franchises restaurants in China. The company operates through two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Little Sheep, Huang Ji Huang, Lavazza, COFFii & JOY, Taco Bell, and East Dawning brands, which specialize in chicken, pizza, hot pot cooking, simmer pot, Italian coffee, specialty coffee, Mexican-style food, and Chinese food categories. The company also operates V-Gold Mall, a mobile e-commerce platform, which sells electronics, home and kitchen accessories, and other general merchandise, as well as fried rice, steak, pasta and other ready meals, and coffee capsules. In addition, it operates franchise restaurants under the KFC, Pizza Hut, Huang Ji Huang, Taco Bell, Little Sheep, East Dawning, Lavazza, and COFFii & JOY names. As of March 31, 2022, the company operated 12,117 restaurants in approximately 1,700 cities. Yum China Holdings, Inc. was incorporated in 2016 and is headquartered in Shanghai, China.Show more
- Revenue$11.8B+4.4%
- EBITDA$1.91B+16.4%
- Net Income$929M+2.0%
- EPS (Diluted)2.50+6.8%
- Gross Margin17.28%+3.4%
- EBITDA Margin16.16%+11.5%
- Operating Margin12.36%+20.2%
- Net Margin7.87%-2.3%
- ROE14.83%+10.3%
YUMC Price & Volume
Yum China Holdings, Inc. (YUMC) stock price & volume — 10-year historical chart
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Yum China Navigates Volatile Consumer Spending Cycles
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Healthy
Cash Flow:Robust
Primary Risk:Geopolitical and consumer volatility
Key Thesis Takeaways
- Yum China demonstrates resilient cash generation capabilities, evidenced by consistent operating cash flow to net income ratios often exceeding 1.50, which supports its aggressive capital return strategy.
- However, the company faces structural margin pressure from intense competition in the Chinese quick-service sector, with gross margins fluctuating between 12.4% and 19.2% over the last ten quarters.
- Investors should monitor the $2.0 billion goodwill balance and the sensitivity of operating margins, which have ranged from 4.4% to 14.6%, as these factors may indicate potential risks to long-term earnings quality.
Verdict Logic
while the company maintains a healthy debt-to-equity ratio of 0.31, the current P/E of 16.34 and the volatility in quarterly EPS growth suggest that investors should wait for more stable margin expansion before increasing exposure.
YUMC Growth Metrics
Yum China Holdings, Inc. (YUMC) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years5.5%
5 Years7.38%
3 Years7.23%
TTM6.72%
Profit CAGR
10 Years11.14%
5 Years3.45%
3 Years28.09%
TTM3.28%
EPS CAGR
10 Years11.52%
5 Years5.09%
3 Years33.96%
TTM8.82%
Return on Capital
10 Years17.57%
5 Years12.22%
3 Years13.62%
Last Year16.78%
YUMC Recent Earnings
Yum China Holdings, Inc. (YUMC) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 9/12 qtrs (75%)●Beat Revenue 5/12 qtrs (42%)
Q2 2026Latest
Apr 29, 2026Metric
Actual
Est
EPS
$0.87+1.9%
$0.85
Rev
$3.3B+1.8%
$3.2B
Q1 2026
Feb 4, 2026Metric
Actual
Est
EPS
$0.40+14.3%
$0.35
Rev
$2.8B+3.9%
$2.7B
Q4 2025
Nov 4, 2025Metric
Actual
Est
EPS
$0.76+2.3%
$0.74
Rev
$3.2B+0.5%
$3.2B
Q3 2025
Aug 5, 2025Metric
Actual
Est
EPS
$0.58+2.5%
$0.57
Rev
$2.8B-0.2%
$2.8B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 29, 2026 | $0.87vs $0.85+1.9% | $3.3Bvs $3.2B+1.8% |
| Q1 2026 | Feb 4, 2026 | $0.40vs $0.35+14.3% | $2.8Bvs $2.7B+3.9% |
| Q4 2025 | Nov 4, 2025 | $0.76vs $0.74+2.3% | $3.2Bvs $3.2B+0.5% |
| Q3 2025 | Aug 5, 2025 | $0.58vs $0.57+2.5% | $2.8Bvs $2.8B-0.2% |
Based on last 12 quarters of dataView full earnings history →
Latest YUMC News
Recent stock market news and headlines for Yum China Holdings, Inc. (YUMC)
Zacks Investment Research·Jun 23, 2026
Why Yum China Holdings (YUMC) is a Top Value Stock for the Long-TermThe Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
24/7 Wall Street·Jun 17, 2026
Pizza Hut's new owner also runs gyms and sells caskets, which is either a coincidence or the most complete business plan ever writtenDon Lair writes about options income, dividend strategy, and the kind of boring-but-durable investing that actually funds retirement.
Zacks Investment Research·Jun 17, 2026
Will Yum! Brands' $2.7 Billion Pizza Hut Sale Unlock More Value?YUM is selling Pizza Hut in a $2.7B deal, aiming to streamline operations, boost flexibility and return more capital to shareholders.
Business Insider·Jun 16, 2026
Pizza Hut is getting a new owner: private equity firm LongRange buys chain in $1.5 billion dealYum! Brands has sold Pizza Hut amid declining sales and market competition challenges. LongRange Capital and Yum China Holdings will acquire the iconic chain in a $2.7 billion deal.
Peers Comparison
Key metrics vs top competitors for Yum China Holdings, Inc. (YUMC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $42.22 | $14.83B | 16.89 | 4.37% | 7.87% | 14.83% | 2.33% | |
| $282.21 | $200.51B | 23.62 | 3.72% | 31.62% | — | — | |
| $73.94 | $25.62B | 31.46 | 12.23% | 9.96% | 18.45% | — | |
| $167.49 | $46.3B | 30.12 | 8.81% | 20.48% | — | — | |
| $7.78 | $1.48B | 9.15 | -3.1% | 7.81% | 150.73% | — | |
| $15.68 | $299.07M | -3.72 | -6.75% | 2.82% | — | — |
Compare YUMC vs Peers
Yum China Holdings, Inc. (YUMC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
YUMC SEC Filings & Documents
Yum China Holdings, Inc. (YUMC) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Apr 29, 2026·SEC
Material company update
Apr 8, 2026·SEC
Material company update
Mar 2, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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YUMC Frequently Asked Questions
Yum China Holdings, Inc. (YUMC) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Yum China Holdings, Inc.'s revenue?
Yum China Holdings, Inc. (YUMC) reported $12.09B in revenue for fiscal year 2025. This represents a 74% increase from $6.93B in 2014.
How fast is Yum China Holdings, Inc. growing?
Yum China Holdings, Inc. (YUMC) grew revenue by 4.4% over the past year. Growth has been modest.
Is YUMC profitable?
Yes, Yum China Holdings, Inc. (YUMC) is profitable, generating $946.0M in net income for fiscal year 2025 (7.9% net margin).
Dividend & Returns
Does YUMC pay dividends?
Yes, Yum China Holdings, Inc. (YUMC) pays a dividend with a yield of 2.33%. This makes it attractive for income-focused investors.
What is YUMC's return on equity?
Yum China Holdings, Inc. (YUMC) has a return on equity (ROE) of 14.8%. This is reasonable for most industries.
What is Yum China Holdings, Inc.'s free cash flow?
Yum China Holdings, Inc. (YUMC) generated $1.08B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.