Yum China Holdings, Inc. (YUMC) Stock

Yum China Holdings, Inc. (YUMC) is a Consumer Discretionary stock trading at $44.75 (as of 2026-09-02), with a market capitalization of $15.62B and a trailing P/E of 16.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Yum China Holdings, Inc. operates and franchises restaurants in China through segments including KFC and Pizza Hut, with restaurants branded KFC, Pizza Hut, and others such as Little Sheep, Huang Ji Huang, and Taco Bell. It also operates V-Gold Mall, a mobile e-commerce platform serving consumers.

Understand Yum China Holdings, Inc.: how it makes money

Yum China operates KFC, Pizza Hut, and smaller food brands (Taco Bell, Little Sheep, Lavazza, Taco Bell) across roughly 14,000 restaurants in China, earning revenue from franchised and company-owned locations. KFC drives roughly two-thirds of revenue, and over 95% of orders now arrive through digital channels, with delivery making up 53% of sales.

Profit is engineered through ~11,000 company-operated KFC stores acting as multi-channel fulfillment nodes; at 95% digital ordering and 53% delivery, each location captures demand from a radius far beyond its sidewalk, turning store density into a repeat-transaction machine.

Revenue by segment (latest quarter)
KFC$2.2B
Pizza Hut$0.6B
Other Brands$0.5B

Business quality (Mixed): Solid KFC franchise and delivery-driven model, but Pizza Hut is in a disruptive reposition that is compressing its margins and ticket prices while the company pays acquisition costs.

Valuation: At 18× earnings, YUMC trades 34% below the Restaurants, Hotels & Motels average (27×).

Bull case

  • Zinger becomes a 5-billion-yuan engine: Management targets double-digit Zinger sales growth exceeding RMB 5 billion by year-end 2026, giving KFC a high-frequency, lower-ticket add-on that lifts average check without requiring new stores.
  • Pizza Hut repositioning is gaining traction: The Burger Bar concept posted double-digit incremental sales and meaningful profit across 200-plus locations, and management now plans 800-plus Pizza Hut openings annually in 2027 through 2028 once brand ownership is complete.
  • Trades at a 34% discount to peers: YUMC screens at 17.9x earnings versus the Restaurants, Hotels & Motels industry average of 27.3x, a 34% discount that large caps like MCD or YUM do not command, leaving a valuation cushion if the Pizza Hut turnaround delivers.

Bear case

  • Ticket prices are eroding across both brands: Average ticket fell 3% at KFC and 11% at Pizza Hut in the quarter, signalling that the company is buying traffic with lower per-visit spend rather than growing genuine pricing power.
  • Pizza Hut margin still sliding: Pizza Hut restaurant margin declined 40 basis points in Q2 even as the Burger Bar and KPRO concepts ramp, meaning the repositioning has not yet offset the cost and promotion burden of the reset.
  • Financing the Pizza Hut acquisition is unresolved: Management confirmed that long-term financing for the Pizza Hut brand buyout has not been arranged beyond the 12-month bridge loan, leaving a refinancing overhang that could constrain capex or force dilution if terms are unfavorable.
Valuation — source: SEC EDGAR (first-party)
Price$44.75
Market Cap$15.62B
P/E Ratio16.0
EV / EBITDA8.2
Price / Book2.58
Price / Sales1.26
Dividend Yield2.5%
FCF Yield6.0%
DCF Value (model)$47.15
DCF Upside vs Price5.4%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$11.80B
Net Margin7.9%
Return on Equity16.1%
Debt / Equity0.01
Current Ratio0.96
Revenue Growth (YoY)12.6%
EPS Growth (YoY)20.7%
FCF Growth (YoY)3.1%
Financial Health — source: SEC EDGAR
Altman Z-Score3.76 (safe)
Valuation vs Sector & Industry
Stock P/E16.0
Sector P/E (Consumer Discretionary)20.1
Industry P/E (Restaurants, Hotels & Motels)27.1
vs Sector-20.4%
vs Industry-40.9%
Company
SectorConsumer Discretionary
IndustryRestaurants, Hotels & Motels
CEOJoey Wat
Employees140,000
CountryCN
IPO Date2016-10-17

Yum China Holdings, Inc. earnings call transcripts

  • YUMC Q2 FY26 earnings call transcript (reported 2026-07-30) · analysis
  • YUMC Q4 FY25 earnings call transcript (reported 2026-02-04) · analysis

All YUMC earnings calls

Related Companies (Restaurants, Hotels & Motels; 8 comparable companies)

  • Chipotle Mexican Grill, Inc. (CMG)
  • Darden Restaurants, Inc. (DRI)
  • Yum! Brands, Inc. (YUM)
  • Aramark (ARMK)
  • Texas Roadhouse, Inc. (TXRH)
  • Brinker International, Inc. (EAT)
  • McDonald's Corporation (MCD)
  • Bloomin' Brands, Inc. (BLMN)
YUMC earnings history · YUMC institutional & insider holders · YUMC KPIs & operating metrics · YUMC financials · YUMC investor presentations & press releases · YUMC SEC filings · YUMC peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.