📊 YUMC Key Takeaways
Is Yum China Holdings, Inc. (YUMC) a Good Investment?
Yum China demonstrates solid cash flow generation ($406M FCF) and healthy operating margins (13.7%) with minimal debt, but suffers from critically low returns on capital (ROE 5.7%, ROA 2.9%) and a highly suspicious revenue anomaly (12,722.8% YoY) that contradicts modest 2.4% net income growth. Data quality concerns and unexplained accounting treatment make reliable assessment difficult.
Yum China Holdings, Inc. Key Strengths (YUMC)
- Strong free cash flow generation of $406M with 12.4% FCF margin indicates operational cash conversion capability
- Robust operating cash flow of $550M and minimal debt burden (0.00x debt/equity) provide financial flexibility
- Healthy operating margins at 13.7% and positive net margin of 9.4% support sustainable core business economics
YUMC Stock Risks: Yum China Holdings, Inc. Investment Risks
- Massive unexplained revenue spike of 12,722.8% YoY contradicted by only 2.4% net income growth, suggesting major acquisition, consolidation, or data quality issue requiring clarification
- Critically low returns on capital (ROE 5.7%, ROA 2.9%) indicate significant inefficiency in capital deployment and poor shareholder value generation
- Deteriorating working capital position with current ratio of 1.01x and quick ratio of 0.83x creates liquidity risk and operational constraints
Key Metrics to Watch
- Explanation and sustainability of reported revenue spike; organic growth rate excluding accounting changes
- Improvement trajectory in return on equity and asset efficiency metrics
- Working capital management and current/quick ratio stability to ensure operational liquidity
Yum China Holdings, Inc. (YUMC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Yum China Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
YUMC Profit Margin, ROE & Profitability Analysis
YUMC vs Consumer Sector: How Yum China Holdings, Inc. Compares
How Yum China Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Yum China Holdings, Inc. Stock Overvalued? YUMC Valuation Analysis 2026
Based on fundamental analysis, Yum China Holdings, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Yum China Holdings, Inc. Balance Sheet: YUMC Debt, Cash & Liquidity
YUMC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Yum China Holdings, Inc.'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.97 reflects profitable operations.
YUMC Revenue Growth, EPS Growth & YoY Performance
YUMC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.0B | $292.0M | $0.77 |
| Q3 2025 | $3.1B | $282.0M | $0.76 |
| Q2 2025 | $2.7B | $212.0M | $0.55 |
| Q1 2025 | $3.0B | $287.0M | $0.71 |
| Q3 2024 | $2.9B | $244.0M | $0.58 |
| Q2 2024 | $2.7B | $197.0M | $0.47 |
| Q1 2024 | $2.9B | $287.0M | $0.68 |
| Q3 2023 | $2.7B | $206.0M | $0.49 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Yum China Holdings, Inc. Dividends, Buybacks & Capital Allocation
YUMC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Yum China Holdings, Inc. (CIK: 0001673358)
📋 Recent SEC Filings
❓ Frequently Asked Questions about YUMC
What is the AI rating for YUMC?
Yum China Holdings, Inc. (YUMC) has an AI grade of B with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are YUMC's key strengths?
Claude: Strong free cash flow generation of $406M with 12.4% FCF margin indicates operational cash conversion capability. Robust operating cash flow of $550M and minimal debt burden (0.00x debt/equity) provide financial flexibility.
What are the risks of investing in YUMC?
Claude: Massive unexplained revenue spike of 12,722.8% YoY contradicted by only 2.4% net income growth, suggesting major acquisition, consolidation, or data quality issue requiring clarification. Critically low returns on capital (ROE 5.7%, ROA 2.9%) indicate significant inefficiency in capital deployment and poor shareholder value generation.
What is YUMC's revenue and growth?
Yum China Holdings, Inc. reported revenue of $3.3B.
Does YUMC pay dividends?
Yum China Holdings, Inc. pays dividends, with $102.0M distributed to shareholders in the trailing twelve months.
Where can I find YUMC SEC filings?
Official SEC filings for Yum China Holdings, Inc. (CIK: 0001673358) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is YUMC's EPS?
Yum China Holdings, Inc. has a diluted EPS of $0.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is YUMC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Yum China Holdings, Inc. has a B grade with 62% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is YUMC stock overvalued or undervalued?
Valuation metrics for YUMC: ROE of 5.7% (sector avg: 18%), net margin of 9.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is YUMC's AI grade for 2026?
Our dual AI analysis gives Yum China Holdings, Inc. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is YUMC's free cash flow?
Yum China Holdings, Inc.'s operating cash flow is $550.0M, with capital expenditures of $144.0M. FCF margin is 12.4%.
How does YUMC compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 9.4% (avg: 8%), ROE 5.7% (avg: 18%), current ratio 1.01 (avg: 1.5).