📊 YUMC Key Takeaways
Is Yum China Holdings, Inc. (YUMC) a Good Investment?
Yum China demonstrates solid operational fundamentals with strong free cash flow generation (840M) and healthy margins (10.9% operating, 7.9% net), supported by robust ROE of 17.3%. However, the extremely anomalous revenue growth (+12,722.8% YoY) suggests significant accounting treatment changes, and deteriorating liquidity ratios (current 1.05x, quick 0.85x) raise concerns about near-term financial flexibility.
Why Buy Yum China Holdings, Inc. Stock? YUMC Key Strengths
- Strong free cash flow generation of 840M annually with FCF margin of 7.1%
- Solid profitability metrics: 10.9% operating margin and 7.9% net margin typical for QSR sector
- Excellent return on equity of 17.3% indicates efficient capital deployment
- Operating cash flow of 1.5B significantly exceeds capex of 626M
- Low debt structure with 0.00x debt-to-equity ratio minimizes financial risk
YUMC Stock Risks: Yum China Holdings, Inc. Investment Risks
- Extremely anomalous revenue growth of +12,722.8% YoY likely represents consolidation/accounting changes rather than organic growth, obscuring true operational trends
- Weak liquidity position with current ratio of 1.05x and quick ratio of 0.85x below healthy thresholds, indicating potential short-term cash management stress
- Significant data quality gaps (missing gross margin, inconsistent debt disclosure) limit analytical confidence and suggest incomplete or reclassified reporting
- Minimal net income growth of +2.4% YoY contradicts claimed massive revenue expansion, indicating either margin compression or one-time items
- 41 insider Form 4 filings in 90 days suggest elevated trading activity that could indicate uncertainty among company insiders
Key Metrics to Watch
- Quarterly cash conversion trends and operating cash flow sustainability
- Current and quick ratios for stabilization above 1.25x and 1.0x respectively
- Gross margin recovery and disclosure to validate underlying unit economics
- Restaurant-level same-store sales growth and expansion metrics in China
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $2.1B | $83.0M | $0.20 |
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 rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are YUMC's key strengths?
Claude: Strong free cash flow generation of 840M annually with FCF margin of 7.1%. Solid profitability metrics: 10.9% operating margin and 7.9% net margin typical for QSR sector.
What are the risks of investing in YUMC?
Claude: Extremely anomalous revenue growth of +12,722.8% YoY likely represents consolidation/accounting changes rather than organic growth, obscuring true operational trends. Weak liquidity position with current ratio of 1.05x and quick ratio of 0.85x below healthy thresholds, indicating potential short-term cash management stress.
What is YUMC's revenue and growth?
Yum China Holdings, Inc. reported revenue of $11.8B.
Does YUMC pay dividends?
Yum China Holdings, Inc. pays dividends, with $353.0M 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 $2.51.
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 rating reflects both perspectives for balanced insights.
Is YUMC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Yum China Holdings, Inc. has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is YUMC stock overvalued or undervalued?
Valuation metrics for YUMC: ROE of 17.3% (sector avg: 18%), net margin of 7.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy YUMC stock in 2026?
Our dual AI analysis gives Yum China Holdings, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is YUMC's free cash flow?
Yum China Holdings, Inc.'s operating cash flow is $1.5B, with capital expenditures of $626.0M. FCF margin is 7.1%.
How does YUMC compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 7.9% (avg: 8%), ROE 17.3% (avg: 18%), current ratio 1.05 (avg: 1.5).