Yum China Holdings, Inc.
- Open
- 44.30
- Day high
- 44.86
- Day low
- 44.22
- Prev close
- 43.40
- Volume
- 1.4M
- Mkt cap
- $15.6B
- P/E (TTM)
- 17.1
- EPS (TTM)
- $2.62
- P/B
- 2.9
- P/S
- 1.3
- Yield
- 1.30%
- Per share
- $0.58
Yum China Holdings, Inc. (YUMC) is a Consumer Cyclical company listed on NYSE. The stock is down 5% over the past year. Drillr has 1 published research article covering YUMC.
Yum China Holdings, Inc. (YUMC) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
YUMC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $0.87 | $0.87 | +0.0% | $3.3B | +1.8% |
| Feb 4, 2026 | $0.35 | $0.40 | +14.3% | $2.8B | -12.0% |
| Apr 30, 2025 | $0.79 | $0.77 | -2.2% | $3.0B | -3.6% |
| Feb 6, 2025 | $0.31 | $0.30 | -3.2% | $2.6B | -1.1% |
| Oct 31, 2023 | $0.67 | $0.59 | -11.9% | $2.9B | -4.8% |
| May 2, 2023 | $0.46 | $0.69 | +50.0% | $2.9B | +5.4% |
| Feb 7, 2023 | $0.15 | $0.12 | -20.0% | $2.1B | -7.7% |
| Nov 1, 2022 | $0.31 | $0.49 | +58.1% | $2.7B | -1.1% |
| Jul 28, 2022 | $0.00 | $0.20 | +4650.6% | $2.1B | -1.9% |
| May 3, 2022 | $0.31 | $0.24 | -22.6% | $2.7B | +4.6% |
| Feb 8, 2022 | $0.17 | $0.03 | -82.4% | $2.3B | -2.7% |
| Jul 28, 2021 | $0.44 | $0.42 | -4.5% | $2.5B | -0.0% |
YUMC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 22, 2026 | DING Jerryofficer: Chief People Officer | Grant | 23 | — |
| Jun 22, 2026 | LIU Pingpingofficer: Chief Legal Officer | Grant | 23 | — |
| Jun 22, 2026 | HUANG Duoduo (Howard)officer: Chief Supply Chain Officer | Grant | 72 | — |
| Jun 22, 2026 | Kuai Jeffofficer: General Manager, Pizza Hut | Grant | 57 | — |
| Jun 22, 2026 | DING Jerryofficer: Chief People Officer | Grant | 10 | — |
| Jun 22, 2026 | DING Jerryofficer: Chief People Officer | Grant | 46 | — |
| Jun 22, 2026 | Wang Wartonofficer: General Manager, KFC | Grant | 139 | — |
| Jun 22, 2026 | Wat Joeydirector, officer: Chief Executive Officer | Grant | 581 | — |
| Jun 22, 2026 | Wang Wartonofficer: General Manager, KFC | Grant | 83 | — |
| Jun 22, 2026 | Ding Adrianofficer: Chief Financial Officer | Grant | 21 | — |
| Jun 22, 2026 | Zhang Leilaofficer: Chief Technology Officer | Grant | 21 | — |
| Jun 22, 2026 | Wat Joeydirector, officer: Chief Executive Officer | Grant | 299 | — |
| Jun 22, 2026 | HUANG Duoduo (Howard)officer: Chief Supply Chain Officer | Grant | 40 | — |
| Jun 22, 2026 | LIU Pingpingofficer: Chief Legal Officer | Grant | 46 | — |
| Jun 22, 2026 | DING Jerryofficer: Chief People Officer | Grant | 2 | — |
Source: YUMC SEC Form 4 filings, latest Jun 22, 2026. For informational purposes only — not investment advice.
See the full YUMC insider & 13F page →Yum China Holdings, Inc. company profile
Overview
Yum China Holdings, Inc. (NYSE:YUMC) is China's largest restaurant company and the exclusive operator of KFC, Pizza Hut, and several other restaurant brands in mainland China. The company was spun off from Yum! Brands in October 2016, creating an independent entity focused solely on the Chinese market. Headquartered in Shanghai, Yum China has grown to operate over 16,000 restaurants across approximately 1,700 cities throughout China, making it one of the world's largest restaurant operators by store count.
Business
Yum China operates as a multi-brand restaurant company in China's quick-service restaurant (QSR) and casual dining sectors. The company's business centers around two primary segments that generate the vast majority of its revenue: KFC Operations (approximately 70% of system sales): KFC is the company's flagship brand and largest revenue generator, specializing in fried chicken and chicken-based menu items. The brand has been adapted for Chinese tastes with localized menu offerings including congee, rice dishes, and region-specific items. KFC operates over 11,900 stores across China, making it the country's largest Western QSR chain. Pizza Hut Operations (approximately 25% of system sales): Pizza Hut in China operates as a casual dining restaurant rather than the delivery-focused model common in Western markets. The brand offers pizza, pasta, appetizers, and desserts in a sit-down restaurant format, though it has been expanding delivery and takeout services. Pizza Hut operates over 3,700 stores nationwide. Emerging Brands (approximately 5% of system sales): The company operates several smaller restaurant concepts including Little Sheep (hot pot), Huang Ji Huang (simmer pot), Lavazza (Italian coffee), COFFii & JOY (specialty coffee), Taco Bell (Mexican-style food), and East Dawning (Chinese food). These brands serve as growth vehicles and help diversify the company's portfolio. Additionally, Yum China operates innovative store-within-store concepts like KCOFFEE, which integrates coffee service into existing KFC locations, and has launched new formats like Pizza Hut WOW stores designed for smaller markets and lower-tier cities. The company also operates V-Gold Mall, a mobile e-commerce platform selling electronics and ready-to-eat meals, though this represents a minimal portion of revenue.
Revenue model
Yum China generates revenue primarily through restaurant sales from company-owned stores and franchise fees and royalties from franchised locations. The company operates under a mixed model where it directly owns and operates the majority of its restaurants while gradually expanding its franchise network. Company-Owned Restaurant Revenue: The bulk of revenue comes from food sales at company-operated stores. Customers pay for meals through dine-in, takeout, and delivery channels. The company has built a robust digital ecosystem with 89% of orders placed digitally and over 470 million loyalty program members, enabling direct customer relationships and data collection. Franchise Revenue: Yum China collects initial franchise fees and ongoing royalty payments (typically 6% of sales) from franchisees. The company is gradually increasing its franchise mix, targeting 40-50% franchise stores for KFC and 20-30% for Pizza Hut over the coming years. Delivery and Digital Revenue: Delivery sales account for approximately 40% of total sales, with the company partnering with third-party platforms while maintaining its own delivery capabilities. Digital ordering and payment systems reduce labor costs and improve operational efficiency. Several factors influence the company's margins and profitability. Positive margin drivers include economies of scale from rapid store expansion, operational efficiency improvements through AI and automation, menu price optimization, and the shift toward higher-margin franchise operations. The company's Project Fresh Eye and Project Red Eye initiatives focus on reducing operational complexity and supply chain costs. Margin pressures come from rising labor costs in China's tightening job market, commodity price inflation affecting food costs, intense competition requiring promotional pricing, and the costs associated with rapid expansion into lower-tier cities where average transaction values may be lower. Additionally, delivery platform commissions and the need for continuous technology investment to maintain digital leadership create ongoing cost pressures.
Competitive moat
Yum China possesses several competitive advantages that create a meaningful but not impenetrable moat in the Chinese restaurant market. The company's primary moat stems from scale and operational efficiency. With over 16,000 locations, Yum China achieves significant economies of scale in purchasing, supply chain management, and technology development that smaller competitors cannot match. The company operates 33 logistics centers and has built sophisticated supply chain capabilities that would be extremely difficult and expensive for new entrants to replicate. Brand recognition and consumer trust represent another significant advantage. KFC and Pizza Hut are among the most recognized Western restaurant brands in China, with decades of market presence and consumer familiarity. This brand equity provides pricing power and customer loyalty that generic competitors lack. The company's digital ecosystem and data capabilities create switching costs and network effects. With 89% digital ordering and over 470 million loyalty members, Yum China has accumulated vast amounts of consumer data that enables personalized marketing, menu optimization, and operational improvements. This data advantage compounds over time and becomes increasingly difficult for competitors to replicate. However, the moat faces several challenges. Local Chinese competitors like Dicos, Wallace, and numerous regional chains compete aggressively on price and local taste preferences. These competitors often have lower cost structures and deeper understanding of local markets. Delivery platform dependency also presents risks, as companies like Meituan and Ele.me control significant portions of the delivery market and can influence customer acquisition costs. The restaurant industry's relatively low barriers to entry mean that well-funded competitors can potentially challenge Yum China's position, particularly in emerging market segments or through innovative formats. The company's moat is strongest in tier-one and tier-two cities where brand recognition and operational scale matter most, but faces greater challenges in lower-tier markets where local preferences and price sensitivity are more pronounced.
Risks & safety
Yum China demonstrates a strong margin of safety with solid financial fundamentals and conservative capital structure. • Liquidity Position: Strong cash position of $825 million with current ratio of 1.26, indicating adequate short-term liquidity. Operating cash flow of $452 million in Q1 2025 demonstrates consistent cash generation capability. • Debt Management: Moderate debt-to-equity ratio of 0.34, indicating conservative leverage. Total debt represents manageable portion of capital structure with no apparent solvency concerns. • Profitability Metrics: Consistent positive free cash flow generation ($315 million in Q1 2025), though volatile quarter-to-quarter. EBITDA margins remain healthy at approximately 17% of revenue. • Valuation Metrics: Trading at P/E ratio of 16.8x and EV/EBITDA of 10.1x, representing reasonable valuations for a dominant market leader with growth prospects. Price-to-book ratio of 3.4x reflects premium to tangible assets but justified by brand value and market position. • Capital Allocation: Committed to returning $4.5 billion to shareholders through 2026 via dividends and share repurchases, demonstrating confidence in cash generation and shareholder-friendly management. • Operational Resilience: Demonstrated ability to maintain profitability through COVID-19 disruptions and economic uncertainty, with diversified revenue streams across multiple brands and channels.
Recent development
Over the past few years, Yum China has executed several strategic initiatives focused on operational efficiency, brand innovation, and market expansion. The company launched Project Fresh Eye and Project Red Eye to streamline restaurant operations and supply chain management, leveraging AI and automation to reduce complexity and improve margins. Brand Innovation and Format Expansion has been a key focus, with the company developing new store concepts like KCOFFEE (coffee service integrated into KFC locations) and Pizza Hut WOW (fast-casual format for smaller markets). KCOFFEE expanded from 50 stores to over 1,000 locations, providing incremental same-store sales growth with minimal additional investment. The company also introduced KPRO, a health-focused concept targeting tier-one and tier-two cities. Franchise Model Expansion represents a significant strategic shift, with plans to increase franchise stores to 40-50% for KFC and 20-30% for Pizza Hut over the next few years. This asset-light approach improves capital efficiency and reduces operational risk while maintaining revenue through franchise fees and royalties. Digital Transformation has accelerated, with 89% of orders now placed digitally and delivery sales reaching 40% of total sales. The company has invested heavily in AI-powered ordering systems, personalized marketing capabilities, and supply chain optimization tools. Market Penetration Strategy focuses on aggressive expansion into lower-tier cities, with the company targeting 20,000 stores by 2026. New store formats with lower investment requirements and flexible operating models enable profitable expansion into previously underserved markets. Menu Innovation continues at scale, with over 500 new menu items introduced in recent years, including localized offerings like original recipe chicken burgers for KFC and entry-price pizzas for Pizza Hut to compete more effectively across different consumer segments.
YUMC company profile · for informational purposes only — not investment advice.
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