Robust cash conversion is highlighted by operating cash flow to net income ratios frequently above 1.50, though capital intensity remains elevated with CapEx reaching up to 8.7% of revenue in recent periods.
| Cash from Operations | 1.58B | 1.47B | 1.42B | 1.47B | 1.41B | 1.13B | 1.11B | 1.19B | 1.33B | 884M | 866M | 913M | 775M |
| Operating CF Margin % | - | 12.43% | 12.55% | 13.42% | 14.77% | 11.48% | 13.48% | 13.5% | 15.84% | 11.38% | 12.83% | 13.21% | 11.18% |
| Operating CF Growth % | 23.16% | 3.31% | -3.67% | 4.25% | 24.93% | 1.53% | -5.99% | -11.1% | 50.79% | 2.08% | -5.15% | 17.81% | - |
| Net Income | 946M | 1B | 980M | 901M | 478M | 1.02B | 813M | 743M | 736M | 424M | 510M | 328M | -37M |
| Depreciation & Amortization | 455M | 448M | 476M | 453M | 602M | 516M | 450M | 428M | 445M | 409M | 402M | 425M | 411M |
| Stock-Based Compensation | 23M | 42M | 41M | 64M | 42M | 41M | 36M | 26M | 24M | 26M | 16M | 14M | 13M |
| Deferred Taxes | -19.18M | -14M | -7M | -10M | -20M | 160M | 111M | 16M | 33M | 62M | -42M | 29M | -104M |
| Other Non-Cash Items | 568.01M | 463M | 383M | 423M | 479M | -147M | 31M | 279M | -118M | 41M | -6M | 52M | 502M |
| Working Capital Changes | -431.13M | -477M | -454M | -358M | -168M | -462M | -327M | -307M | 213M | -78M | -14M | 65M | -10M |
| Change in Receivables | -16.11M | -11M | -9M | -6M | -1M | -5M | -15M | -9M | -13M | 1M | -54M | -5M | -5M |
| Change in Inventory | -62.35M | -14M | 8M | -19M | -19M | -16M | 17M | -77M | -23M | -11M | -96M | 61M | -21M |
| Change in Payables | 77.7M | -33M | -3M | 84M | 16M | 118M | 65M | 171M | 254M | -56M | 123M | 31M | 39M |
| Cash from Investing | -173.32M | -5M | -178M | -743M | -522M | -855M | -3.11B | -910M | -552M | -557M | -471M | -493M | -512M |
| Capital Expenditures | -496.88M | 0 | -705M | -710M | -679M | -689M | -419M | -435M | -470M | -415M | -436M | -512M | -525M |
| CapEx % of Revenue | 4.11% | 5.31% | 6.24% | 6.47% | 7.1% | 6.99% | 5.07% | 4.96% | 5.59% | 5.34% | 6.46% | 7.41% | 7.57% |
| Acquisitions | -8.11M | 0 | 0 | -20M | -23M | -115M | -305M | 0 | -91M | -25M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -141.98M | -638M | 4M | 5M | 4M | 5M | 56M | 15M | 7M | 0 | 48M | 19M | 13M |
| Cash from Financing | -1.78B | -1.69B | -1.64B | -716M | -844M | -313M | 2.06B | -480M | -518M | -185M | 93M | -216M | -319M |
| Debt Issued (Net) | -111.38M | -100M | -39M | 164M | 2M | 0 | 0 | 0 | 0 | -2M | -3M | -2M | -1M |
| Equity Issued (Net) | -1.2B | -1.14B | -1.25B | -613M | -466M | -75M | 2.19B | -265M | -307M | -128M | 460M | 0 | 0 |
| Dividends Paid | -369.34M | -353M | -248M | -216M | -202M | -203M | -95M | -181M | -161M | -38M | 0 | 0 | 0 |
| Share Repurchases | -1.2B | -1.14B | -1.25B | -613M | -466M | -75M | -8M | -265M | -307M | -128M | 0 | 0 | 0 |
| Other Financing | -90.68M | -92M | -100M | -51M | -178M | -35M | -34M | -34M | -50M | -17M | -364M | -214M | -318M |
| Net Change in Cash | -827M | -217M | -405M | -2M | -6M | -22M | 103M | -211M | 207M | 174M | 460M | 187M | -62M |
| Free Cash Flow | 1.08B | 840M | 714M | 763M | 734M | 442M | 695M | 750M | 863M | 469M | 430M | 401M | 250M |
| FCF Margin % | 8.97% | 7.12% | 6.32% | 6.95% | 7.67% | 4.49% | 8.41% | 8.55% | 10.26% | 6.04% | 6.37% | 5.8% | 3.61% |
| FCF Growth % | 39.8% | 17.65% | -6.42% | 3.95% | 66.06% | -36.4% | -7.33% | -13.09% | 84.01% | 9.07% | 7.23% | 60.4% | - |
| FCF per Share | 3.06 | 2.34 | 1.83 | 1.82 | 1.73 | 1.02 | 1.73 | 1.93 | 2.18 | 1.18 | 1.16 | 1.05 | 0.64 |
| FCF Conversion (FCF/Net Income) | 1.15x | 1.58x | 1.56x | 1.78x | 3.20x | 1.14x | 1.42x | 1.66x | 1.88x | 2.22x | 1.73x | 2.83x | -110.71x |
| Interest Paid | 0 | 0 | 4M | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 2.21B | 0 | 393M | 324M | 204M | 255M | 170M | 255M | 208M | 232M | 182M | 143M | 186M |
Geopolitical and consumer volatility
As reported in financial statements, YUMC consistently demonstrates strong cash conversion, with operating cash flow to net income ratios frequently exceeding 1.50, suggesting that the company's reported earnings are well-supported by actual cash generation despite the inherent volatility of the Chinese quick-service restaurant market.
The persistent gap between net income and operating cash flow indicates that non-cash charges, primarily depreciation from the company's extensive store footprint, are significant. Investors should monitor whether this high conversion rate remains sustainable as the company shifts toward smaller-format stores which may alter the depreciation profile.
Based on recent SEC filings, YUMC's free cash flow trajectory exhibits pronounced seasonality, with negative FCF margins observed in the fourth quarter of both 2024 and 2025, highlighting the impact of year-end capital expenditure cycles on the company's overall liquidity position.
While the company generates robust cash flow during peak operating periods, the recurring fourth-quarter cash outflows suggest a strategic prioritization of store maintenance and expansion during specific windows. This pattern warrants further investigation into whether these capital outlays are effectively driving long-term same-store sales growth.
According to reported figures, YUMC maintains a capital intensity ratio ranging from 4.0% to 8.7% of revenue, reflecting the ongoing requirement to reinvest in its cold chain logistics and store remodeling cycles to maintain a competitive edge in the fragmented Chinese market.
The elevated capex levels in late-year periods suggest that management is aggressively defending its market position through physical asset upgrades. This capital-intensive model appears necessary to sustain the company's moat, though it may limit the flexibility of free cash flow during periods of decelerating consumer demand.
As indicated by historical cash flow data, YUMC has consistently returned capital to shareholders through dividends and significant share repurchases, with buybacks totaling over $679 million in 2024Q1 alone, signaling management's confidence in the company's long-term cash-generating capacity despite external macroeconomic headwinds.
The aggressive pace of share repurchases suggests that management views the current valuation as disconnected from the company's underlying cash flow potential. However, investors should monitor whether this capital allocation strategy remains prudent if the competitive environment in the Chinese value-meal sector continues to compress operating margins.
Quick answers to the most common questions about buying YUMC stock.
Yum China Holdings, Inc. (YUMC) generated $1.47B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Yum China Holdings, Inc. (YUMC) generated $840.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Yum China Holdings, Inc. (YUMC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Yum China Holdings, Inc. (YUMC) returned $353.0M to shareholders via cash dividends and spent $1.14B on share repurchases. This shows the company's commitment to returning capital to its equity investors.