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Yum China Holdings (YUMC)

Consumer · NYSE · China

$44.33+1.56% today

Fundamentals

Market cap$14.80B
P/E ratio16.5
Dividend yield2.74%
Revenue growth (YoY)+9.7%
Profit margin7.8%
Return on equity16.3%
52-week range$40.15 to $58.39
Next earnings2026-07-30

Valuation and ratings

DCF fair value$73.08
Upside to fair value+64.9%
Analyst target (mean)$61.34
Analyst range$54.20 to $77.00
Analysts covering21
Consensus viewstrong buy
Moat score46/100
Overall rating67/100, Buy

Yum China Holdings trades at $44.33, which is 65% below the $73.08 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.

Our moat model scores it 46 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 16.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Yum China Holdings

Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People's Republic of China. The company operates through two KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also offers online food delivery services. Yum China Holdings, Inc. was founded in 1987 and is headquartered in Shanghai, the People's Republic of China.

Industry: RestaurantsEmployees: 130,000HQ: China

YUMC passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Undervalued on cash flow
Companies trading at least 25% below what our discounted cash flow model says the future cash is worth today.
Growing dividend payers
A modest yield attached to a growing business beats a large yield attached to a shrinking one, every time, over any horizon that matters.
Low volatility defensives
Companies that move less than the market and pay you to wait. The holdings that let you sleep, and let you hold everything else.
Consumer staples
The companies that sell what people buy regardless of the economy. Dull, and dull is the entire point.
China and Hong Kong
Enormous growth, and a structure in which you may not legally own the company you think you bought. Both are true at once.
Dividend aristocrats
Companies with long, unbroken records of raising their dividend. The record is the point: it is evidence, not a promise.

Smart money ownership

14 of the funds we track reported a position in their latest SEC 13F filing. Largest first:

A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.

Common questions

Is Yum China Holdings (YUMC) undervalued?

Against our discounted cash flow estimate of $73.08, YUMC at $44.33 is 65% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

Which funds own YUMC?

14 of the institutions we track reported a position in YUMC in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.

What is YUMC's P/E ratio?

YUMC trades at 16.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

The full research page for YUMC, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open YUMC in the appFree guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.