| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 79 | 15.6x | 17.8x | Top tier | |
Growth | 42 | 8.8% | 7.1% | Around median | |
Quality | 58 | 13.3% | 4.5% | Around median | |
Safety | 78 | 1.0x | 2.6x | Top tier | |
Capital Return | 66 | 2.27% | 2.12% | Top tier | |
Momentum | 31 | 6.2% | 2.9% | Bottom tier | |
Sentiment | 63 | 18 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Yum China Holdings operates a restaurant network in China led by the KFC and Pizza Hut brands, generating revenue from company-owned restaurant sales and its franchise system. The company is expanding demand through formats linked to existing stores, such as KCOFFEE Cafe, KPRO, and Pizza Hut Burger Bar, alongside geographic expansion; it opened approximately 1,200 net new stores during the first half of fiscal 2026 and entered more than 200 new cities, while franchise stores represented 40% of net new openings and only 18% of Yum China's total stores.
In fiscal Q2 2026, revenue increased 13% year over year, and operating profit reached a second-quarter record of $348 million, up 7%, while net income was $244 million, up 6%, and diluted earnings per share were $0.70, up 14%. Restaurant margins were 16.1%, unchanged year over year, and the operating profit margin increased 20 basis points to 11.1%, marking the company's ninth consecutive quarter combining system sales growth, operating profit growth, and operating profit margin expansion.
At the brand level in fiscal Q2 2026, KFC system sales grew 7% and same-store sales increased 1%, with a restaurant margin of 17.1% after improving 20 basis points. Pizza Hut system sales grew 6% and same-store sales returned to 1% growth, but its restaurant margin declined 40 basis points due to a higher delivery mix, investment in value, and the launch of Burger Bar. EDGAR filings for fiscal 2025 show revenue of $11.8 billion and net income of $929 million, compared with trailing-twelve-month revenue of $12.1 billion and net income of $946 million in the available 2026 data.
The average analyst target is $59, which is also the highest and lowest available target, with a consensus rating of “Buy”; this target is slightly above the 52-week range high of $58.39, while the range low is $40.15. No price-to-earnings ratio is available in the data, so the available valuation framework relies on a single target with no dispersion among analysts, balancing earnings growth and expected Pizza Hut savings against delivery pressures and the transaction's financing through an approximately $1.2 billion bridge loan.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Yum China's revenue increased 13%, system sales grew 6%, and operating profit reached $348 million in fiscal Q2 2026. Net income increased 6% to $244 million, while diluted earnings per share rose 14% to $0.70. This came with 1% same-store sales growth and the fourteenth consecutive quarter of same-store transaction growth.
According to the July 30, 2026 call, the transaction was scheduled to close in August 2026 after Yum China had operated the brand in the market for 36 years. The company expects to save the 3% license fee, adding 2.8 percentage points to the operating margin of Pizza Hut restaurants after value-added tax and approximately 60 basis points to Yum China's overall margin. It also expects the transaction to be slightly accretive to diluted earnings per share in fiscal 2026, then accretive by a mid-single-digit percentage in 2027 and 2028.
KCOFFEE Cafe had more than 3,300 locations as of July 30, 2026, and the format was adding a mid-single-digit percentage to parent-store sales. Management is targeting sales of approximately RMB 2 billion in fiscal 2026 and 5,000 locations by the end of 2027. KPRO surpassed 450 locations and added nearly 20% to parent-store sales, and the company raised its fiscal 2026 year-end target to approximately 800 locations.
Automated analysis for informational purposes only — not investment advice.
Pizza Hut system sales grew 6%, and same-store sales returned to 1% growth in fiscal Q2 2026. Same-store transactions increased 13%, but this was offset by an 11% decline in the average ticket to RMB 68. The restaurant margin declined 40 basis points due to a higher delivery mix, enhanced value, and the costs of launching Pizza Hut Burger Bar, despite a 60-basis-point expansion in the operating margin due to lower closure and impairment expenses.
The delivery sales mix increased from 45% to 54% in fiscal Q2 2026, and higher rider costs reduced margin by 140 basis points. The company also faces tougher comparisons in the second half of fiscal 2026 because of the higher delivery base since June 2025, with the fiscal Q3 operating margin expected to be near its year-ago level. The planned approximately $1.2 billion bridge loan to finance the Pizza Hut transaction also adds interest-rate and refinancing exposure until the long-term financing structure is determined.
Management is targeting a same-store sales index between 100 and 102 and mid- to high-single-digit system sales growth during fiscal 2026. It is also targeting high-single-digit operating profit growth and double-digit earnings-per-share growth, with slight improvement in restaurant and operating profit margins. The company remains on track to reach 20,000 stores and return $1.5 billion to shareholders by the end of fiscal 2026.
