Owns, operates, and franchises restaurants in China. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
No real growth (5% a year).
The market pays 16× for every dollar of annual profit — around what a business like this usually costs.
Against companies in its own sector, it looks cheaper than 61% of them.
Analysts' average target sits 39% above today's price.
Executives buying with their own money is usually read as confidence in the company’s future.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit indicators sit around the sector average.
A solid grade overall — yet the debt outweighs the cash. The strength here comes from earnings power.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
This grade is a blend: the profit side is strong, the sales tempo slow.
The price is looking for direction — no strong breakout, no collapse.
No real weak spot in any of the five subjects — a balanced report card.
The stock trades 34% below its peak. The market has trimmed its expectations for the company.
Over the last 12 months, company executives reported 187 buys and 111 sells. Management buying with its own money is usually read as a good sign.
It pays out $1.11 per share each year — regular cash for whoever holds the stock.
Since the drop from its peak, buyer appetite hasn’t come back.
On our five-subject report card, YUMC sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: YUMC is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.