Yum! Brands vs Yum China
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KIRA’s take AI analyst
I put Yum! Brands and Yum China side by side, using each one’s latest annual report. Here is what stands out:
- Yum China is the larger business, with $11.8B of revenue in fiscal 2025 against $8.2B for Yum! Brands.
- Yum! Brands grew revenue faster (8.8%, against 4.4%).
- Yum! Brands kept more of each dollar of sales as operating profit (31.3% operating margin, against 10.9%).
- Yum! Brands turned more of its sales into free cash flow (20.0% FCF margin, against 7.1%).
- Investors pay more for each dollar of Yum! Brands’s earnings: a P/E of 18.8x against 16.6x for Yum China.
Who comes out ahead
Of the 6 measures where higher (or lower) is clearly better, how many each company leads.
Yum! Brands
YUM
5/6
Revenue growth5-year growthOperating marginNet marginFCF margin
Yum China
YUMC
1/6
Share count change
Side by side
Best in the row
| Latest fiscal year | YUM FY25 | YUMC FY25 |
|---|---|---|
| Size | ||
| Market cap | $41.4B | $15.9B |
| Revenue | $8.2B | $11.8B |
| Free cash flow | $1.6B | $840M |
| Net income | $1.6B | $929M |
| Growth | ||
| Revenue growth | 8.8% | 4.4% |
| 5-year growth | 7.8% | 7.4% |
| Share count change | −1.4% | −4.9% |
| Profitability | ||
| Gross margin | 69.8% | — |
| Operating margin | 31.3% | 10.9% |
| Net margin | 19.0% | 7.9% |
| FCF margin | 20.0% | 7.1% |
| Return on capital | 54.8% | — |
| Return on equity | — | 16.7% |
| Balance sheet | ||
| Net debt | $11.3B | — |
| Net debt / EBITDA | 4.1x | — |
| Dividends and buybacks | $1.3B | $1.5B |
| Valuation & quality | ||
| P/E | 18.8x | 16.6x |
| Piotroski F-score | 6 | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.