Yum! Brands, Inc. (YUM) vs Yum China (YUMC)

Yum! Brands, Inc. and Yum China are both Restaurants companies. Yum! Brands, Inc. is the larger, with a market value of $37.8B against $13.8B — 2.7× the size. Yum China trades at the lower P/E: 14.8× against 17.3×. Yum! Brands, Inc. grew revenue faster over the last twelve months: 10.3% against 8.78%. Yum! Brands, Inc. has the higher net margin (25.4% vs 7.84%) and the higher return on invested capital (37.6% vs 18.0%). Both pay a dividend; Yum! Brands, Inc. yields more (2.05% vs 1.57%). Across the 22 metrics below, Yum! Brands, Inc. leads on 11 and Yum China on 11.

Valuation

Metric YUM YUMC Restaurants median
P/E 17.33 14.77 22.14
P/S 4.37 1.13 0.91
P/B n/m 2.32 2.01
Price to free cash flow 22.71 14.98 19.41
EV/EBITDA 16.91 6.93 11.48
EV/Sales 5.70 1.03 1.20
Earnings yield 5.77% 6.77% 2.30%
Free cash flow yield 4.40% 6.67% 3.92%

Profitability

Metric YUM YUMC Restaurants median
Gross margin 68.13% 22.02% 38.77%
Operating margin 31.01% 11.11% 4.30%
Net margin 25.42% 7.84% 1.85%
Free cash flow margin 19.25% 7.56% 3.12%
Return on equity (29.99%) 15.58% 3.07%
Return on assets 28.42% 8.92% 1.50%
Return on invested capital 37.62% 18.03% 3.14%

Growth

Metric YUM YUMC Restaurants median
Revenue growth (TTM) 10.29% 8.78% 5.16%
EPS growth (last fiscal year) 6.32% 7.73% —
Revenue growth, 5-year CAGR 7.76% 7.38% 10.57%
Net income growth, 5-year CAGR 11.52% 3.45% 0.00%

Health

Metric YUM YUMC Restaurants median
Debt to equity (1.73) 0.02 0.10
Current ratio 0.59 0.96 0.81
Net debt to EBITDA 4.03 (0.75) 0.43

Dividend

Metric YUM YUMC Restaurants median
Dividend yield 2.05% 1.57% 2.32%
Payout ratio 0.47 0.28 0.00

Size

Metric YUM YUMC Restaurants median
Market cap 37.80b 13.80b 482.66m

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