Yum China Holdings Inc Stock Research

Market Summary

USD60.98+0.54

Market Closed

0.89%

YUMC Alerts

2 major insider sales recently.
Big fall in earnings (Y/Y)

YUMC Stock Price

YUMC RSI Chart

YUMC Valuation

Market Cap

25.6B

Price/Earnings (Trailing)

57.81

Price/Sales (Trailing)

2.67

EV/EBITDA

18.05

Price/Free Cashflow

34.81

YUMC Price/Sales (Trailing)

YUMC Profitability

EBT Margin

7.18%

Return on Equity

6.18%

Return on Assets

3.74%

Free Cashflow Yield

2.87%

YUMC Fundamentals

YUMC Revenue

Revenue (TTM)

9.6B

Revenue Y/Y

-8.86%

Revenue Q/Q

-22.23%

YUMC Earnings

Earnings (TTM)

442.0M

Earnings Y/Y

-88.84%

Earnings Q/Q

-74.27%

Price Action

52 Week Range

36.0563.06

(Low)(High)

Last 7 days

1.2%

Last 30 days

-1.2%

Last 90 days

8.4%

Trailing 12 Months

52.7%

YUMC Financial Health

Current Ratio

1.82

YUMC Investor Care

Dividend Yield

1.06%

Dividend/Share (TTM)

0.48

Buy Backs (1Y)

2.10%

Diluted EPS (TTM)

1.04

Peers (Alternatives to Yum China Holdings)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
MCD	198.8B	23.2B	0.05%	16.44%	32.19	8.58	-0.17%	-18.13%
SBUX	115.3B	32.9B	-8.46%	21.74%	34.73	3.5	8.41%	-24.41%
CMG	45.1B	8.6B	-1.45%	6.51%	50.2	5.23	14.41%	37.69%
YUM	36.1B	6.8B	-4.07%	12.49%	27.22	5.27	3.92%	-15.87%
DRI	18.4B	10.0B	-0.05%	22.19%	20.2	1.84	16.23%	-1.35%
MID-CAP
ARMK	8.7B	17.0B	-13.89%	-5.83%	38.66	0.51	27.66%	584.49%
TXRH	7.2B	4.0B	2.32%	33.62%	26.81	1.8	15.91%	10.00%
WING	5.4B	357.5M	7.11%	60.53%	102.55	15.19	26.56%	24.12%
WEN	4.5B	2.1B	-8.69%	-3.72%	25.11	2.13	10.46%	-11.49%
SHAK	2.2B	900.5M	-2.39%	-11.52%	-91.65	2.45	21.70%	-178.35%
SMALL-CAP
PLAY	1.7B	1.7B	-22.36%	-14.62%	13.72	0.97	61.79%	371.82%
BJRI	706.1M	1.3B	-8.26%	9.24%	173.24	0.55	18.11%	213.03%
CHUY	643.4M	422.2M	5.25%	31.31%	30.85	1.52	6.49%	-30.89%
DENN	633.1M	456.4M	-11.70%	-23.65%	8.47	1.39	14.63%	-4.30%
RUTH	564.4M	505.9M	0.65%	-21.38%	14.61	1.12	17.88%	-8.64%

Financials for Yum China Holdings

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	-2.1%	9,569	9,772	9,641	9,964	9,853
S&GA Expenses	-1.8%	594	605	590	585	564
R&D Expenses	-	6.00	-	-	-	-
EBITDA	-29.1%	1,353	1,909	1,707	1,771	-
EBITDA Margin	-27.6%	0.14*	0.20*	0.18*	0.18*	-
Earnings Before Taxes	-44.7%	687	1,242	1,071	1,213	1,392
EBT Margin	-43.5%	0.07*	0.13*	0.11*	0.12*	-
Interest Expenses	16.4%	64.00	55.00	57.00	60.00	-
Net Income	-48.8%	442	864	762	860	990
Net Income Margin	-47.8%	0.05*	0.09*	0.08*	0.09*	-
Free Cahsflow	9.6%	734	670	234	242	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	1.1%	11,826	11,696	12,054	12,639	13,223
Current Assets	-16.3%	3,940	4,710	4,576	4,266	4,716
Cash Equivalents	-6.7%	1,130	1,211	1,147	1,047	1,136
Inventory	29.9%	417	321	353	345	432
Net PPE	7.8%	2,118	1,965	2,065	2,231	2,251
Goodwill	3.2%	1,988	1,927	2,047	2,163	2,142
Liabilities	3.0%	4,666	4,528	4,752	4,931	5,301
Current Liabilities	2.9%	2,166	2,104	2,153	2,085	2,383
Shareholder's Equity	11.4%	7,148	6,418	7,289	7,694	7,056
Retained Earnings	-1.7%	2,191	2,228	2,083	2,941	2,892
Additional Paid-In Capital	-0.4%	4,390	4,408	4,402	4,704	4,695
Shares Outstanding	0%	419	419	420	423	428
Minority Interest	-9.6%	666	737	760	801	852

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	1.9%	1,413	1,386	967	971	1,131
Share Based Compensation	5.0%	42.00	40.00	37.00	42.00	41.00
Cashflow From Investing	26.0%	-522	-705	-296	-495	-855
Cashflow From Financing	-24.9%	-844	-676	-707	-532	-313
Dividend Payments	-0.5%	202	203	203	204	203
Buy Backs	2.6%	466	454	591	534	75.00

Risks for YUMC

What is the probability of a big loss on YUMC?

51.9%

Probability that Yum China Holdings stock will be more than 20% underwater in next one year

25%

Probability that Yum China Holdings stock will be more than 30% underwater in next one year.

7.3%

Probability that Yum China Holdings stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does YUMC drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Yum China Holdings was unfortunately bought at previous high price.

Drawdowns

Returns for YUMC

Cumulative Returns on YUMC

8.6%

5-Year Cumulative Returns

13.6%

3-Year Cumulative Returns

What are the long-term rolling returns for YUMC?

FIve years rolling returns for Yum China Holdings.

Annualized Returns

Which funds bought or sold YUMC recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-13	Claro Advisors LLC	added	0.17	46,337	408,337	0.13%
2023-03-06	Rockefeller Capital Management L.P.	added	45.89	258,000	634,000	-%
2023-03-06	NORTH STAR ASSET MANAGEMENT INC	reduced	-5.29	29,382	342,382	0.02%
2023-03-03	TIAA, FSB	reduced	-11.75	6,122	311,122	-%
2023-03-02	LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS LLP/MA	new	-	95,966	95,966	-%
2023-03-02	OLIVER LAGORE VANVALIN INVESTMENT GROUP	added	32.93	1,974	5,974	-%
2023-02-28	CYPRESS ASSET MANAGEMENT INC/TX	reduced	-2.38	38,097	336,097	0.12%
2023-02-28	Voya Investment Management LLC	added	19.65	1,202,500	4,295,500	0.01%
2023-02-24	National Pension Service	reduced	-2.54	423,129	4,165,480	0.01%
2023-02-24	NATIXIS	reduced	-95.51	-4,066,090	219,912	-%

Latest Funds Activity

Are funds buying YUMC calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own YUMC

No. of Funds

Yum China Holdings News

Schedule 13G FIlings of Yum China Holdings

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 01, 2023	blackrock inc.	6.9%	28,737,537	SC 13G/A
Feb 11, 2022	goldman sachs group inc	1.6%	6,738,815	SC 13G/A
Feb 10, 2022	invesco ltd.	9.5%	40,727,617	SC 13G/A
Feb 03, 2022	blackrock inc.	7.6%	32,413,842	SC 13G/A
Mar 15, 2021	blackrock inc.	7.1%	29,685,927	SC 13G/A
Feb 12, 2021	goldman sachs & co. llc	5.7%	23,919,072	SC 13G
Feb 12, 2021	invesco ltd.	10.0%	41,897,729	SC 13G/A
Nov 04, 2020	primavera capital management ltd	4.71%	19,913,992	SC 13D/A
May 20, 2020	primavera capital management ltd	6.22%	23,876,745	SC 13D/A
Feb 12, 2020	invesco ltd.	9.9%	37,144,958	SC 13G/A

YUMC Fair Value

Yum China Holdings fair value in different scenarios

The table shows the Fair Value estimates for Yum China Holdings for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	18.93 -68.96%	25.77 -57.74%	33.87 -44.46%	41.91 -31.27%	48.39 -20.65%
Current Inflation	17.86 -70.71%	23.78 -61.00%	30.54 -49.92%	37.28 -38.87%	42.68 -30.01%
Very High Inflation	16.50 -72.94%	21.35 -64.99%	26.61 -56.36%	31.88 -47.72%	36.08 -40.83%

Historical Yum China Holdings Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Yum China Holdings

View All Filings

Date Filed	Form Type	Document
Mar 06, 2023	4	Insider Trading
Mar 06, 2023	3	Insider Trading
Mar 01, 2023	10-K	Annual Report
Feb 24, 2023	4	Insider Trading
Feb 14, 2023	4	Insider Trading
Feb 14, 2023	4	Insider Trading
Feb 14, 2023	4	Insider Trading
Feb 14, 2023	4	Insider Trading
Feb 14, 2023	4	Insider Trading
Feb 14, 2023	4	Insider Trading

Latest Insider Trading transactions for YUMC

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-03	Huang Johnson	back to issuer	-347,572	62.00	-5,606	chief customer officer
2023-03-03	Huang Johnson	sold	-663,834	62.00	-10,707	chief customer officer
2023-03-03	Huang Johnson	acquired	347,467	21.3	16,313	chief customer officer
2023-02-22	Wat Joey	acquired	419,147	22.32	18,779	chief executive officer
2023-02-22	Wat Joey	back to issuer	-419,182	62.00	-6,761	chief executive officer
2023-02-22	Wat Joey	sold	-745,374	62.0215	-12,018	chief executive officer
2023-02-10	Huang Johnson	sold (taxes)	-36,885	61.17	-603	chief customer officer
2023-02-10	Kuai Jeff	acquired	-	-	754	general manager, pizza hut
2023-02-10	Wang Warton	sold (taxes)	-3,058	61.17	-50.00	general manager, kfc
2023-02-10	Yuen Aiken	acquired	-	-	754	chief people officer

About Yum China Holdings

Joey Wat

www.yumchina.com

65535

Yum China Holdings, Inc. owns, operates, and franchises restaurants in China. The company operates through two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Little Sheep, Huang Ji Huang, Lavazza, COFFii & JOY, Taco Bell, and East Dawning brands, which specialize in chicken, pizza, hot pot cooking, simmer pot, Italian coffee, specialty coffee, Mexican-style food, and Chinese food categories. The company also operates V-Gold Mall, a mobile e-commerce platform, which sells electronics, home and kitchen accessories, and other general merchandise, as well as fried rice, steak, pasta and other ready meals, and coffee capsules. In addition, it operates franchise restaurants under the KFC, Pizza Hut, Huang Ji Huang, Taco Bell, Little Sheep, East Dawning, Lavazza, and COFFii & JOY names. As of December 31, 2021, the company operated 11,788 restaurants in approximately 1,600 cities. Yum China Holdings, Inc. was incorporated in 2016 and is headquartered in Shanghai, China.

YUMC Income Statement

2022-12-31

Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Revenues

Total revenues

$ 9,569

$ 9,853

$ 8,263

Costs and Expenses, Net

General and administrative expenses

594

564

479

Other operating costs and expenses

Closures and impairment expenses, net

Other expenses (income), net

(643)

(285)

Total costs and expenses, net

8,940

8,467

7,302

Operating Profit

629

1,386

961

Interest income, net

Investment (loss) gain

(26)

(54)

104

Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments

687

1,392

1,108

Income tax provision

(207)

(369)

(295)

Equity in net earnings (losses) from equity method investments

(2)

Net income – including noncontrolling interests

478

1,023

813

Net income – noncontrolling interests

Net Income – Yum China Holdings, Inc.

$ 442

$ 990

$ 784

Weighted-average common shares outstanding (in millions):

Basic

^[1]

421

422

390

Diluted

425

434

402

Basic Earnings Per Common Share

$ 1.05

$ 2.34

$ 2.01

Diluted Earnings Per Common Share

$ 1.04

$ 2.28

$ 1.95

Company Sales [Member]

Revenues

Revenues

$ 9,110

$ 8,961

$ 7,396

Franchise [Member]

Revenues

Revenues

153

148

Costs and Expenses, Net

Cost of goods and services sold

Transactions With Franchisees and Unconsolidated Affiliates [Member]

Revenues

Revenues

287

663

647

Costs and Expenses, Net

Cost of goods and services sold

279

649

633

Other Revenues [Member]

Revenues

Revenues

Company Restaurant Expenses [Member]

Costs and Expenses, Net

Food and paper

2,836

2,812

2,342

Payroll and employee benefits

2,389

2,258

1,730

Occupancy and other operating expenses

2,604

2,664

2,226

Cost of goods and services sold

$ 7,829

$ 7,734

$ 6,298

[1]

As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and were included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. See Note 15 for a further discussion of share-based compensation. In September 2020, 41,910,700 common shares were issued as a result of the Company’s global offering and secondary listing on the HKEX and they were included in the calculated weighted-average common shares outstanding.

YUMC Balance Sheet

2022-12-31

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 1,130	$ 1,136
Short-term investments	2,022	2,860
Accounts receivable, net	64	67
Inventories, net	417	432
Prepaid expenses and other current assets	307	221
Total Current Assets	3,940	4,716
Property, plant and equipment, net	2,118	2,251
Operating lease right-of-use assets	2,219	2,612
Goodwill	1,988	2,142
Intangible assets, net	159	272
Long-term time deposits	680	90
Investments in unconsolidated affiliates	266	292
Deferred income tax assets	113	106
Other assets	343	742
Total Assets	11,826	13,223
Current Liabilities
Accounts payable and other current liabilities	2,098	2,332
Income taxes payable	68	51
Total Current Liabilities	2,166	2,383
Non-current operating lease liabilities	1,906	2,286
Non-current finance lease liabilities	42	40
Deferred income tax liabilities	390	425
Other liabilities	162	167
Total Liabilities	4,666	5,301
Redeemable Noncontrolling Interest	12	14
Equity
Common stock, $0.01 par value; 1,000 million shares authorized; 419 million shares and 449 million shares issued at December 31, 2022 and 2021, respectively; 419 million shares and 428 million shares outstanding at December 31, 2022 and 2021, respectively	4	4
Treasury stock		(803)
Additional paid-in capital	4,390	4,695
Retained earnings	2,191	2,892
Accumulated other comprehensive (loss) income	(103)	268
Total Yum China Holdings, Inc. Stockholders' Equity	6,482	7,056
Noncontrolling interests	666	852
Total Equity	7,148	7,908
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 11,826	$ 13,223