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Yum China: High-Quality Operator In The QSR Space
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Yum China: High-Quality Operator In The QSR Space

Seeking Alpha·Jason Fieber·21 days ago
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#source#chevron#alpha#china#company#brands
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Summary

  • Yum China's primary brands are KFC, Pizza Hut, and Taco Bell, of which it has exclusive rights to operate and sub-license in China (paying a 3% systemwide sales royalty back to its former parent company).
  • Yum China increased its revenue from $7.2 billion in FY 2017 to $11.8 billion in FY 2025. That’s a compound annual growth rate of 6.4%.
  • Yum China has a stellar financial position. The company carries essentially no long-term debt at all.
  • YUMC stock is trading hands for a P/E ratio of 18.7. That’s well below where almost all large QSRs are at right now.
KFC Restaurant in China

hapabapa/iStock Editorial via Getty Images

Yum China Holdings, Inc. (YUMC), an American-Chinese company, is the largest restaurant operator in China. Founded in 2016 after being spun out of former parent company Yum! Brands, Inc. (YUM), but

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