Yum China Holdings, Inc.

Consumer Discretionary
Restaurants
www.yumchina.com

Earnings Score
Moat Score
Safety Score

Market Cap $16.22B
PE 18
Debt $129.00M
Cash $825.00M
EV $15.52B
FCF $776.00M

Earnings

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Sales & Net Margins

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Earnings	$916.00M
EBIT	$1.34B
ROE	14%
ROA	12%
FCF	$776.00M
Equity	$6.43B
Growth Stability	53%
PE	17.7
PEG	4.93
PB	2.52
P/FCF	20.9
P/S	1.43
Price/Cash	0.05
Debt/Equity	0.02
Debt/FCF	0.17
Net Margins	10%
Op. Margins	12%
Earnings CAGR	17%
Sales Growth YoY	1%
Sales Growth QoQ	15%
Sales CAGR	12%
FCF CAGR	11%
Equity CAGR	15%
Earnings Stability	0.34
Earnings Growth YoY	2%
Earnings Growth QoQ	154%
Earnings CAGR 5Y	4%

Sales CAGR 5Y	7%
FCF CAGR 5Y	5%
Equity CAGR 5Y	4%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	14%
Equity CAGR 3Y	-5%
Market Cap	$16.22B
Revenue	$11.33B
Dividend Yield	2%
Payout Ratio	30%
Assets	$11.00B
Total Debt	$129.00M
Cash	$825.00M
Shares Outstanding	375M
EV	15.52B
Earnings Score	25%
Moat Score	92%
Safety Score	77%
Final Score	65%
Working Capital	560M
Current Ratio	1.26
Shares Growth 3y	-5%
Equity Growth QoQ	0%
Equity Growth YoY	-2%

Assets & ROA

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Stockholders Equity & ROE

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Yum China Holdings, Inc. (the 'Company' or 'Yum China') (NYSE: YUMC and HKEX: 9987) is China's largest restaurant company with a purpose of making every life taste beautiful. From a single restaurant in 1987, the Company now operates over 13,000 restaurants in over 1,800 cities and towns spanning every province and autonomous region across mainland China.Yum China became an independent publicly traded company on November 1, 2016 on the NYSE. The Company was secondary-listed on the HKEX on September 10, 2020. On October 24, 2022, the Company became dual primary listed on both the HKEX and the NYSE.We have the exclusive right to operate and sub-license the KFC, Pizza Hut and Taco Bell brands in China, and we own the Little Sheep and Huang Ji Huang concepts outright. We also partner with Lavazza to explore and develop the Lavazza coffee shop concept in China.

SEC Filings

Direct access to Yum China Holdings, Inc. (YUMC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Yum China Holdings, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Yum China Holdings, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 17%

Stability 34%

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Yum China Holdings, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Yum China Holdings, Inc..

Years

Calculation mode

= $16B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$776M	$860M	$953M	$1.1B	$1.2B	$1.3B	$1.4B	$1.6B	$1.8B	$2B	$2.2B	$22B
DCF		$782M	$788M	$793M	$799M	$805M	$811M	$817M	$823M	$830M	$836M	$8.4B
Value	$16B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	5%	7%	6%	8%	8%	9%	10%	5%	8%	8%	10%
ROA	-	18%	19%	21%	14%	10%	11%	6%	10%	12%	12%
ROE	-	21%	14%	24%	22%	12%	13%	6%	12%	14%	14%

Net Margins (9.8%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	-	-	-	-	-	0	0.22	0.18	0.17
Debt over Equity	-	-	-	-	-	-	-	0	0.02	0.02	0.02
Growth Stability	-	-	-	100%	100%	100%	100%	53%	100%	100%	53%

Good Debt/FCF ratio (0.17)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.02)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (53%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-2%	6%	18%	4%	-6%	19%	-3%	15%	3%	7%
Earnings YoY growth	-	55%	-20%	76%	1%	10%	26%	-55%	87%	10%	4%
Equity YoY growth	-	23%	17%	4%	7%	103%	22%	-10%	-1%	-10%	4%
FCF YoY growth	-	8%	10%	84%	-13%	-7%	-36%	66%	4%	-6%	5%