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 $45.3B against $17.0B — 2.7× the size. Yum! Brands, Inc. trades at the lower P/E: 13.2× against 17.2×. Yum China grew revenue faster over the last twelve months: 9.85% against 9.13%. Yum! Brands, Inc. has the higher net margin (39.1% vs 7.90%) and the higher return on invested capital (81.9% vs 14.9%). Both pay a dividend; Yum China yields more (2.23% vs 1.79%). Across the 22 metrics below, Yum! Brands, Inc. leads on 12 and Yum China on 10.

Valuation

Metric YUM YUMC Restaurants median
P/E 13.20 17.19 26.18
P/S 5.12 1.34 1.11
P/B n/m 2.79 2.06
Price to free cash flow 27.85 17.92 17.92
EV/EBITDA 18.55 8.88 12.81
EV/Sales 6.20 1.33 1.29
Earnings yield 7.57% 5.82% 2.23%
Free cash flow yield 3.59% 5.58% 3.23%

Profitability

Metric YUM YUMC Restaurants median
Gross margin 67.35% 0.00% 38.86%
Operating margin 49.53% 11.28% 4.59%
Net margin 39.14% 7.90% 1.83%
Free cash flow margin 18.39% 7.46% 2.47%
Return on equity (50.37%) 16.09% 3.72%
Return on assets 43.14% 8.57% 1.10%
Return on invested capital 81.85% 14.87% 3.01%

Growth

Metric YUM YUMC Restaurants median
Revenue growth (TTM) 9.13% 9.85% 5.52%
EPS growth (last fiscal year) 6.32% 7.73% (5.05%)
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 (1.88) 0.26 0.22
Current ratio 0.96 0.67 0.78
Net debt to EBITDA 4.03 (0.75) 0.43

Dividend

Metric YUM YUMC Restaurants median
Dividend yield 1.79% 2.23% 1.79%
Payout ratio 0.24 0.39 0.45

Size

Metric YUM YUMC Restaurants median
Market cap 45.33b 17.04b 612.23m

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