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 $41.2B against $15.3B — 2.7× the size. Yum China trades at the lower P/E: 16.5× against 18.8×. 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 China yields more (2.46% vs 1.97%). Across the 22 metrics below, Yum China leads on 12 and Yum! Brands, Inc. on 10.

Valuation

Metric YUM YUMC Restaurants median
P/E 18.77 16.46 24.26
P/S 4.74 1.26 0.92
P/B n/m 2.59 2.01
Price to free cash flow 24.60 16.69 20.49
EV/EBITDA 17.99 7.80 11.76
EV/Sales 6.07 1.16 1.24
Earnings yield 5.33% 6.08% 2.07%
Free cash flow yield 4.07% 5.99% 3.58%

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% 3.72%
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% 5.66%
EPS growth (last fiscal year) 6.32% 7.73% (7.75%)
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 0.77
Net debt to EBITDA 4.03 (0.75) 0.43

Dividend

Metric YUM YUMC Restaurants median
Dividend yield 1.97% 2.46% 1.97%
Payout ratio 0.37 0.41 0.42

Size

Metric YUM YUMC Restaurants median
Market cap 41.16b 15.30b 493.91m

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