Yum China
YUMC Consumer Cyclical Restaurants
Yum China’s revenue for fiscal 2025 (year ended December 2025) was $11.8 billion, up 4.37% from fiscal 2024. In the quarter to June 2026, revenue grew 12.6%, EPS grew 20.7%, free cash flow grew 3.10% and total debt rose 141.7%, each against the same quarter a year earlier. Dividend growth for five consecutive years, revenue growth for three.
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Yum China (YUMC) Altman Z-score
Yum China's Altman Z-score for fiscal 2025 is 3.99, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 3.99 | (0.06) |
| FY2024 | 4.05 | 0.32 |
| FY2023 | 3.74 | (0.64) |
| FY2022 | 4.38 | 0.39 |
| FY2021 | 3.98 | (0.68) |
| FY2020 | 4.66 | (0.28) |
| FY2019 | 4.94 | (2.75) |
| FY2018 | 7.70 | (1.49) |
| FY2017 | 9.19 | 2.17 |
| FY2016 | 7.02 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.01 | — | 0.01 | |
| Retained earnings / total assets | 0.16 | — | 0.23 | |
| EBIT / total assets | 0.12 | — | 0.39 | |
| Market value of equity / total liabilities | 3.76 | — | 2.26 | |
| Sales / total assets | 1.09 | — | 1.09 | |
| Altman Z-score | Safe zone | 3.99 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 2.77 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CAVA CAVA Group, Inc. compare | 8.0× |
| TXRH Texas Roadhouse, Inc. compare | 5.7× |
| EAT Brinker International, Inc. compare | 4.8× |
| YUMC Yum China | 4.0× |
| DPZ Domino's Pizza Inc compare | 3.3× |
| BROS Dutch Bros Inc. compare | 3.0× |
| DRI Darden Restaurants, Inc. compare | 2.6× |
| CAKE The Cheesecake Factory Incorporated compare | 2.3× |
| QSR Restaurant Brands International Inc. compare | 1.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets