Revenue growth remains highly sensitive to seasonal volatility, with quarterly growth rates ranging from 0.8% to 19.4% as the company manages a high fixed-cost base that limits operating margin scalability.
| Sales/Revenue | 12.09B | 11.8B | 11.3B | 10.98B | 9.57B | 9.85B | 8.26B | 8.78B | 8.41B | 7.77B | 6.75B | 6.91B | 6.93B |
| Revenue Growth % | 6.72% | 4.37% | 2.96% | 14.72% | -2.88% | 19.24% | -5.85% | 4.29% | 8.32% | 15.06% | -2.27% | -0.36% | - |
| Cost of Goods Sold | 10.01B | 9.76B | 9.41B | 9.09B | 8.14B | 8.45B | 7B | 6.97B | 7.1B | 6.49B | 5.68B | 6B | 6.09B |
| COGS % of Revenue | - | 82.72% | 83.28% | 82.83% | 85.09% | 85.73% | 84.67% | 79.38% | 84.37% | 83.47% | 84.14% | 86.86% | 87.87% |
| Gross Profit | 2.08B | 2.04B | 1.89B | 1.89B | 1.43B | 1.41B | 1.27B | 1.81B | 1.31B | 1.28B | 1.1B | 908M | 841M |
| Gross Margin % | 17.23% | 17.28% | 16.72% | 17.17% | 14.91% | 14.27% | 15.33% | 20.62% | 15.63% | 16.53% | 16.23% | 13.14% | 12.13% |
| Gross Profit Growth % | - | 7.88% | 0.27% | 32.1% | 1.49% | 10.97% | -30% | 37.64% | 2.41% | 17.15% | 20.7% | 7.97% | - |
| Operating Expenses | 660M | 581M | 728M | 779M | 798M | 20M | 306M | 909M | 485M | 523M | 444M | 397M | 372M |
| OpEx % of Revenue | - | 4.92% | 6.44% | 7.1% | 8.34% | 0.2% | 3.7% | 10.36% | 5.76% | 6.73% | 6.58% | 5.75% | 5.36% |
| Selling, General & Admin | 580M | 581M | 568M | 638M | 594M | 564M | 479M | 896M | 456M | 495M | 429M | 395M | 389M |
| SG&A % of Revenue | - | 4.92% | 5.03% | 5.81% | 6.21% | 5.72% | 5.8% | 10.21% | 5.42% | 6.37% | 6.35% | 5.72% | 5.61% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 160M | 141M | 204M | -544M | -173M | 9M | 29M | 28M | 15M | 2M | -17M |
| Operating Income | 1.42B | 1.46B | 1.16B | 1.11B | 629M | 1.39B | 961M | 901M | 941M | 778M | 634M | 488M | 3M |
| Operating Margin % | 11.76% | 12.36% | 10.28% | 10.07% | 6.57% | 14.07% | 11.63% | 10.27% | 11.18% | 10.01% | 9.39% | 7.06% | 0.04% |
| Operating Income Growth % | - | 25.47% | 5.06% | 75.83% | -54.62% | 44.22% | 6.66% | -4.25% | 20.95% | 22.71% | 29.92% | 16166.67% | - |
| EBITDA | 1.88B | 1.91B | 1.64B | 1.56B | 1.23B | 1.9B | 1.41B | 1.33B | 1.39B | 1.19B | 1.04B | 913M | 414M |
| EBITDA Margin % | 15.53% | 16.16% | 14.49% | 14.2% | 12.86% | 19.3% | 17.08% | 15.14% | 16.47% | 15.28% | 15.34% | 13.21% | 5.97% |
| EBITDA Growth % | 13.41% | 16.36% | 5.07% | 26.65% | -35.28% | 34.8% | 6.17% | -4.11% | 16.77% | 14.58% | 13.47% | 120.53% | - |
| D&A (Non-Cash Add-back) | 455M | 448M | 476M | 453M | 602M | 516M | 450M | 428M | 445M | 409M | 402M | 425M | 411M |
| EBIT | 1.41B | 1.37B | 1.2B | 1.13B | 658M | 734M | 709M | 863M | 830M | 761M | 652M | 511M | 469M |
| Net Interest Income | 82M | 74M | 129M | 169M | 84M | 60M | 43M | 39M | 36M | 25M | 11M | 8M | 14M |
| Interest Income | 82M | 74M | 129M | 169M | 84M | 60M | 43M | 39M | 36M | 25M | 11M | 8M | 14M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -27M | -85M | 174M | 124M | 56M | 6M | 147M | 102M | 9M | 25M | 32M | 8M | 14M |
| Pretax Income | 1.4B | 1.37B | 1.34B | 1.23B | 685M | 1.39B | 1.11B | 1B | 950M | 803M | 666M | 496M | 17M |
| Pretax Margin % | 11.54% | 11.64% | 11.82% | 11.2% | 7.16% | 14.13% | 13.41% | 11.43% | 11.29% | 10.34% | 9.86% | 7.18% | 0.25% |
| Income Tax | 373M | 369M | 356M | 329M | 207M | 369M | 295M | 260M | 214M | 379M | 156M | 168M | 54M |
| Effective Tax Rate % | 26.74% | 26.88% | 26.65% | 26.75% | 30.22% | 26.51% | 26.62% | 25.92% | 22.53% | 47.2% | 23.42% | 33.87% | 317.65% |
| Net Income | 946M | 929M | 911M | 827M | 442M | 990M | 784M | 713M | 708M | 398M | 502M | 323M | -7M |
| Net Margin % | 7.83% | 7.87% | 8.06% | 7.53% | 4.62% | 10.05% | 9.49% | 8.12% | 8.41% | 5.12% | 7.43% | 4.68% | -0.1% |
| Net Income Growth % | 3.28% | 1.98% | 10.16% | 87.1% | -55.35% | 26.28% | 9.96% | 0.71% | 77.89% | -20.72% | 55.42% | 4714.29% | - |
| Net Income (Continuing) | 1.02B | 1B | 980M | 901M | 478M | 1.02B | 813M | 743M | 736M | 424M | 510M | 328M | -37M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 674M | 720M | 699M | 714M | 678M | 866M | 265M | 98M | 104M | 82M | 66M | 64M | 66M |
| EPS (Diluted) | 2.67 | 2.50 | 2.34 | 1.97 | 1.04 | 2.28 | 1.95 | 1.84 | 1.79 | 1.00 | 1.36 | 0.84 | -0.02 |
| EPS Growth % | 8.82% | 6.84% | 18.78% | 89.42% | -54.39% | 16.92% | 5.98% | 2.79% | 79% | -26.47% | 61.9% | 4792.74% | - |
| EPS (Basic) | - | 2.53 | 2.35 | 1.99 | 1.05 | 2.35 | 2.01 | 1.89 | 1.84 | 1.03 | 1.37 | 0.84 | -0.02 |
| Diluted Shares Outstanding | 354M | 359M | 390M | 420M | 425M | 434M | 402M | 388M | 395M | 398M | 369.14M | 383.14M | 390M |
| Basic Shares Outstanding | 353M | 359M | 388M | 416M | 421M | 422M | 390M | 377M | 384M | 387M | 367.74M | 383.14M | 390M |
| Dividend Payout Ratio | - | 38% | 27.22% | 26.12% | 45.7% | 20.51% | 12.12% | 25.39% | 22.74% | 9.55% | - | - | - |
Geopolitical and consumer sentiment
According to reported financial statements, YUMC's revenue growth has exhibited significant quarterly variance, ranging from 0.8% to 19.4% over the last ten quarters, suggesting that top-line performance remains highly sensitive to seasonal travel patterns and the timing of the Chinese lunar calendar across its core segments.
The inconsistent revenue trajectory highlights the company's reliance on high-frequency, discretionary consumer spending within Mainland China. While recent quarters show a stabilization in growth, investors should monitor whether the expansion into lower-tier cities can provide a durable floor for revenue as urban markets reach saturation.
Based on the provided income statement data, YUMC's gross margin has fluctuated between 12.4% and 19.2%, reflecting the capital-intensive nature of its company-owned store model and the ongoing impact of intensifying price competition within the Chinese quick-service restaurant sector as reported in recent filings.
The volatility in gross margins suggests that the company faces limited pricing power when confronted with aggressive domestic competitors. The recurring compression in Q4 periods may indicate that promotional activity and value-meal discounting are necessary to maintain foot traffic, potentially creating a permanent ceiling on profitability.
As indicated by the historical income statement, YUMC's operating income has shown significant sensitivity to gross profit fluctuations, with operating margins ranging from 4.4% to 14.6%, suggesting that the company's high fixed-cost base limits its ability to scale profitability efficiently during periods of revenue deceleration.
The lack of consistent operating leverage implies that SG&A expenses remain sticky despite shifts in top-line performance. This structure warrants further investigation into whether the current store-level labor and rental costs can be optimized through the ongoing transition to smaller-format, lower-overhead locations.
Based on an analysis of the reported figures, YUMC's net income volatility, which saw EPS growth swing from 76.9% to -1.3% in recent periods, suggests that investors should be cautious regarding the sustainability of earnings quality given the reliance on non-operating items and potential tax credit fluctuations.
The significant variance in quarterly EPS growth may mask underlying operational trends, particularly if non-recurring items or VAT credit adjustments are driving bottom-line results. A deeper look at the cash conversion cycle is necessary to determine if reported net income is truly representative of the company's core cash-generating capability.
Quick answers to the most common questions about buying YUMC stock.
For fiscal year 2025, Yum China Holdings, Inc. (YUMC) reported total revenue of $11.80B. This represents a 70.1% increase compared to $6.93B in 2014.
Yum China Holdings, Inc. (YUMC) is profitable, generating $929.0M in net income for the fiscal year ending 2025 with a net profit margin of 7.9%.
Yum China Holdings, Inc. (YUMC) reported an operating income of $1.46B, resulting in an operating profit margin of 12.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Yum China Holdings, Inc. (YUMC) generated $2.04B in gross profit for the year, representing a gross profit margin of 17.3%. This demonstrates the company's core pricing power and production efficiency.