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) Beneish M-score
Yum China's Beneish M-score for fiscal 2025 is −2.51; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.51 | (0.03) |
| FY2024 | −2.49 | 0.17 |
| FY2023 | −2.66 | 0.16 |
| FY2022 | −2.82 | (0.25) |
| FY2021 | −2.57 | (0.11) |
| FY2020 | −2.46 | (0.17) |
| FY2019 | −2.28 | 0.69 |
| FY2018 | −2.98 | 0.05 |
| FY2017 | −3.03 | (1.20) |
| FY2016 | −1.83 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.15 | — | 1.06 | |
| Gross margin index | 0.95 | — | 0.50 | |
| Asset quality index | 1.01 | — | 0.41 | |
| Sales growth index | 1.04 | — | 0.93 | |
| Depreciation index | 1.10 | — | 0.13 | |
| SG&A index | 0.98 | — | −0.17 | |
| Total accruals to total assets | (0.04) | — | −0.20 | |
| Leverage index | 1.02 | — | −0.33 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.51 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| DPZ Domino's Pizza Inc compare | −3.0× |
| EAT Brinker International, Inc. compare | −2.9× |
| CAKE The Cheesecake Factory Incorporated compare | −2.8× |
| TXRH Texas Roadhouse, Inc. compare | −2.7× |
| CAVA CAVA Group, Inc. compare | −2.5× |
| YUMC Yum China | −2.5× |
| QSR Restaurant Brands International Inc. compare | −2.4× |
| DRI Darden Restaurants, Inc. compare | −2.4× |
| BROS Dutch Bros Inc. compare | −2.1× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI