Yum China Holdings, Inc. (YUMC) AI Stock Analysis

Yum China Holdings, Inc. is a leading restaurant company in China that owns, operates, and franchises dining concepts across the nation. The business is organized into two primary segments, KFC and Pizza Hut, and also operates brands including Taco Bell and Little Sheep, covering fried chicken, pizza, Mexican-style food, and traditional Chinese hot pot. Its reach extends into retail through the V-Gold Mall mobile e-commerce platform and into specialty beverages through partnerships with Lavazza and COFFii & JOY. Headquartered in Shanghai and established in 2016, the company operated a network of 12,409 restaurants across approximately 1,700 cities as of September 30, 2022.

Revenue expanded at a 5-year CAGR of 7.4% from FY2020 through FY2025, rising from $9.85B in FY2021 to $11.80B in FY2025 despite a 2.9% dip in FY2022. Operating margin reached 12.4% in FY2025, up from 10.3% in FY2024 and 6.6% in FY2022. Net income grew to $929.0M in FY2025 with diluted EPS of $2.51. Over the trailing twelve months, revenue reached $12.44B and EPS stood at $2.73. Growth accelerated in the latest quarter ended June 30, 2026, where quarterly revenue rose 12.6% year-over-year and quarterly earnings grew 21.4%.

As of June 30, 2026, Yum China held $1.39B in cash and short-term investments against total debt of $2.30B, resulting in net debt of $910.0M. The current ratio stood at 0.96 and debt-to-equity was 0.43 on shareholders' equity of $5.36B. Operating cash flow in FY2025 was $1.47B, supporting $626.0M in capital expenditures. Capital returns were substantial in FY2025, with $1.14B directed toward share buybacks and $353.0M toward dividends, contributing to a 19.6% reduction in share count over 5 years.

Trading at $45.12, Yum China carries an enterprise value of $14.75B and a trailing P/E of 16.5x, below the 18.0x median of its US-listed Consumer Cyclical peers. Its forward P/E of 12.3x and EV/EBITDA of 7.8x also compare favorably to peer medians of 14.1x and 11.1x, respectively. The stock has posted a 1-year return of 6.7%, trailing the S&P 500 (SPY) gain of 16.8%, and its 5-year return sits at -19.9% versus 83.0% for the index benchmark.

Yum China pays an annualized forward dividend of $1.16 per share, providing a 2.57% dividend yield with a payout ratio of 40.7%. The dividend is distributed quarterly and has been paid for 10 consecutive years, reflecting a 5-year annualized dividend growth rate of 32.0%. The company's most recent ex-dividend date was August 27, 2026.

Wall Street coverage includes 14 Strong Buy, 6 Buy, and 1 Hold rating, with zero Sell or Strong Sell recommendations. The mean price target is $62.16, implying 37.8% upside from the October 16, 2026 close of $45.12. For the fiscal year ending December 31, 2026, analysts estimate revenue of $12.88B and EPS of $2.94, representing 17.1% EPS growth. Yum China beat EPS estimates in 3 of the last 4 quarters and is scheduled to report earnings next on November 3, 2026.

This page is an AI-written research summary of Yum China Holdings, Inc. (YUMC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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