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Upturn AI SWOT - About
Yum China Holdings Inc (YUMC)
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Upturn Advisory Summary
04/01/2025: YUMC (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -3.97% | Avg. Invested days 43 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 19.85B USD | Price to earnings Ratio 22.73 | 1Y Target Price 59.52 |
Price to earnings Ratio 22.73 | 1Y Target Price 59.52 | ||
Volume (30-day avg) 2724387 | Beta 0.34 | 52 Weeks Range 28.27 - 53.99 | Updated Date 04/2/2025 |
52 Weeks Range 28.27 - 53.99 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 1.81% | Basic EPS (TTM) 2.33 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.06% | Operating Margin (TTM) 6.47% |
Management Effectiveness
Return on Assets (TTM) 6.48% | Return on Equity (TTM) 14.47% |
Valuation
Trailing PE 22.73 | Forward PE 20.12 | Enterprise Value 20078541827 | Price to Sales(TTM) 1.76 |
Enterprise Value 20078541827 | Price to Sales(TTM) 1.76 | ||
Enterprise Value to Revenue 1.78 | Enterprise Value to EBITDA 11.98 | Shares Outstanding 374828000 | Shares Floating 370738563 |
Shares Outstanding 374828000 | Shares Floating 370738563 | ||
Percent Insiders 0.35 | Percent Institutions 90.98 |
Analyst Ratings
Rating 4.69 | Target Price 57.84 | Buy 6 | Strong Buy 19 |
Buy 6 | Strong Buy 19 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Yum China Holdings Inc
Company Overview
History and Background
Yum China Holdings Inc. was spun off from Yum! Brands in 2016. Yum! Brands had entered China in 1987 with KFC in Beijing. Yum China became responsible for operating and expanding KFC, Pizza Hut, and other brands in mainland China. It has focused on localization and digital innovation.
Core Business Areas
- KFC: The largest segment, focusing on fried chicken, burgers, and local adaptations. Key drivers are rapid expansion and digital integration.
- Pizza Hut: Offers pizza, pasta, and other Italian-American cuisine. Focuses on menu innovation and dining experience upgrades.
- Taco Bell: Growing presence, offering Mexican-inspired cuisine. Aiming to appeal to younger consumers with trendy menu items.
- Little Sheep: Hot pot restaurant chain, catering to local Chinese tastes. Expansion focused on leveraging Yum China's infrastructure.
- Huang Ji Huang: Simmer pot restaurant chain acquired in 2020. Further diversifies Yum China's portfolio in the Chinese dining market.
Leadership and Structure
CEO: Joey Wat; CFO: Andy Yeung. Operates with a decentralized structure, empowering regional management teams to adapt to local market conditions. Board of Directors includes representatives from Yum! Brands and independent directors.
Top Products and Market Share
Key Offerings
- KFC Chicken: Signature fried chicken. Market share is significant in the quick-service chicken segment in China. Competitors include McDonald's, Burger King, and local Chinese chains. KFC accounted for 73% of Yum China's total system sales in 2023.
- Pizza Hut Pizza: Variety of pizzas. Pizza Hut is a major player in the Chinese pizza market. Competitors include Domino's and local pizza chains. Pizza Hut accounted for 21% of Yum China's total system sales in 2023.
- Taco Bell Tacos: Mexican-inspired tacos and burritos. Taco Bell is expanding its presence in China targeting the younger generation. Competitors are similar Mexican-inspired restaurant chains as well as some fast food burger chains. Taco Bell has a comparatively smaller market presence than KFC or Pizza Hut.
Market Dynamics
Industry Overview
The Chinese restaurant industry is large and rapidly growing, driven by increasing disposable incomes and urbanization. It is also highly competitive and fragmented, with numerous local and international players.
Positioning
Yum China is a leading restaurant operator in China with strong brand recognition and extensive infrastructure. It leverages its scale and digital capabilities to maintain a competitive edge.
Total Addressable Market (TAM)
The Chinese restaurant market is estimated to be worth hundreds of billions of dollars. Yum China is positioned to capture a significant portion through its established brands and ongoing expansion.
Upturn SWOT Analysis
Strengths
- Strong brand recognition (KFC, Pizza Hut)
- Extensive store network across China
- Advanced digital capabilities (mobile ordering, delivery)
- Strong supply chain management
- Experienced management team
Weaknesses
- Reliance on a few key brands (KFC and Pizza Hut)
- High operating costs due to expansion
- Exposure to food safety and quality issues
- Competition from local players
- Fluctuations in consumer preferences
Opportunities
- Further expansion into lower-tier cities
- Menu innovation and localization
- Expansion of delivery services
- Leveraging digital platforms for marketing
- Strategic acquisitions and partnerships
Threats
- Intense competition from local and international brands
- Changes in consumer tastes and preferences
- Economic slowdown in China
- Food safety scandals
- Regulatory changes
Competitors and Market Share
Key Competitors
- MCD
- SBUX
- CMG
Competitive Landscape
Yum China holds a competitive edge in terms of store network and brand recognition. However, it faces increasing competition from both international and local players, especially in first tier cities. McDonalds and Starbucks are expanding their digital operations as well.
Major Acquisitions
Huang Ji Huang
- Year: 2020
- Acquisition Price (USD millions):
- Strategic Rationale: Expand Yum China's portfolio in the Chinese dining market with a popular simmer pot chain.
Growth Trajectory and Initiatives
Historical Growth: Yum China has experienced significant growth in store count and revenue since its spin-off. Digital initiatives and expansion into new markets have driven growth.
Future Projections: Analysts project continued revenue growth driven by store expansion and same-store sales growth. Profitability is expected to improve with scale and efficiency gains.
Recent Initiatives: Focus on digital transformation, menu innovation, store modernization, and expansion into lower-tier cities.
Summary
Yum China is a leading restaurant operator in China with strong brands and extensive operations. Its digital capabilities and expansion strategy have fueled significant growth. However, it faces intense competition and economic uncertainties. It leverages KFC and Pizza Hut's success while exploring new opportunities in lower-tier cities and through acquisitions to fuel further growth. The company is performing well and positioned for moderate growth, but should continue to watch out for competitive pressures and be careful about the economy.
Similar Companies
CMG
Chipotle Mexican Grill Inc
CMG
Chipotle Mexican Grill Inc
MCD
McDonald’s Corporation
MCD
McDonald’s Corporation
SBUX
Starbucks Corporation
SBUX
Starbucks Corporation
WEN
The Wendy’s Co
WEN
The Wendy’s Co
Sources and Disclaimers
Data Sources:
- Yum China Holdings Inc. Annual Reports
- Analyst Reports
- Market Research Reports
- Company Press Releases
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market data and analyst estimates are subject to change. Past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Yum China Holdings Inc
Exchange NYSE | Headquaters - | ||
IPO Launch date 2016-10-17 | CEO & Executive Director Ms. Joey Wat | ||
Sector Consumer Cyclical | Industry Restaurants | Full time employees 140000 | Website https://www.yumchina.com |
Full time employees 140000 | Website https://www.yumchina.com | ||
Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People's Republic of China. The company operates through 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 operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services. Yum China Holdings, Inc. was founded in 1987 and is headquartered in Shanghai, the People's Republic of China.
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