Is the business good?
How good a business is YUMC?
Yum China Holdings, Inc. earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
26%
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Restaurants median 8.6% · 12 months to Q1 2026
- Cash conversion
- 0.98×
Cash conversion · 0.85× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −6.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 14% |
| FY2022 | 6.6% |
| FY2023 | 10% |
| FY2024 | 10% |
| FY2025 | 11% |
Details›
- Operating margin12 months to Q1 2026
- 11%
- Net margin12 months to Q1 2026
- 7.8%
- Free cash flow margin
- 7.7%
- Revenue, trailing twelve months
- $12.1B
- Free cash flow, trailing twelve months
- $931M
- Net income, trailing twelve months
- $946M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.