Yum China HoldingsHAM:0YU +1.37%81 Gross Margin % is 18.80% as of Mar. 2026, which is 19% above its 10-year median of 15.80. GuruFocus rates HAM:0YU with a GF Score™ of 81/100 and a GF Value™ of €47.93 (Modestly Undervalued). Among 352 Restaurants companies, Yum China Holdings ranks worse than 87.5% on this metric.
The historical rank and industry rank for Yum China Holdings's Gross Margin % or its related term are showing as below:
HAM:0YU'
s Gross Margin % Range Over the Past 10 Years
Min: 14.27 Med: 15.8 Max: 17.28
Current: 17.23
During the past 13 years, the highestGross Margin % of Yum China Holdings was 17.28%. The lowest was 14.27%. And the median was 15.80%.
HAM:0YU's Gross Margin % is ranked worse than 87.5% of 352
companies
in the Restaurants industry
Industry Median: 45.685
vs HAM:0YU: 17.23
Yum China Holdings had a gross margin of 18.80% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Yum China Holdings was 3.50% per year.
Yum China Holdings (HAM:0YU) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Yum China Holdings had a gross margin of 18.80% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Yum China Holdings Gross Margin % Related Terms
Yum China Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Yum China Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:0YU vs TXRH, DPZ, BROS: Gross Margin % Comparison
For the Restaurants subindustry, Yum China Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Yum China Holdings Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Yum China Holdings (HAM:0YU) has a Gross Margin % of 18.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Yum China Holdings and its competitors. This is 19% above median its historical median of 15.80. Over the past decade, Yum China Holdings' Gross Margin % has ranged from 14.27 to 17.28. According to the industry distribution chart, Yum China Holdings ranks #308 out of 352 companies in the Restaurants industry, placing it in the top 87.5%.
Is Yum China Holdings' Gross Margin % too high?
Yum China Holdings' current Gross Margin % of 18.80% is 19% above median its 10-year median of 15.80. Over the past 10 years, this metric has ranged from a low of 14.27 to a high of 17.28. The Restaurants industry median Gross Margin % is 45.69. Yum China Holdings' value of 18.80% is 58.8% below this industry median. Based on the distribution chart, Yum China Holdings ranks #308 out of 352 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Yum China Holdings has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yum China Holdings' Gross Margin % compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #308 out of 352 companies for Gross Margin %. This places Yum China Holdings in the lower half of its industry. The industry median Gross Margin % is 45.69. Yum China Holdings' value of 18.80% is 58.8% below this benchmark. Historically, Yum China Holdings' own Gross Margin % has ranged from 14.27 to 17.28 over the past decade. While the company's 10-year median is 15.80 vs. the industry median of 45.69, Yum China Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.69, based on 352 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum China Holdings's current Gross Margin % of 18.80% is 58.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Yum China Holdings and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current Gross Margin % is 18.80%, which is 19% above median its own 10-year median of 15.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yum China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yum China Holdings (HAM:0YU) is currently considered Modestly Undervalued. The stock's GF Value™ is €47.93, compared to a current price of €37.00 — trading 22.8% below its estimated fair value. The current Gross Margin % is 18.80%, which is 19% above median its 10-year median of 15.80 and 58.8% below the Restaurants industry median of 45.69. Yum China Holdings' overall GF Score™ is 81/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Yum China Holdings (HAM:0YU), the current Gross Margin % is 18.80% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Yum China Holdings (HAM:0YU) Overvalued in 2026?
Based on GuruFocus' analysis, Yum China Holdings stock appears to be undervalued.
The current stock price of €37.00 is trading 22.8% below its estimated GF Value™ of €47.93.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for HAM:0YU:
Gross Margin %: 18.80% (19% above median its 10-year median of 15.80)
GF Value™: €47.93 vs. price of €37.00 (22.8% below fair value)
Industry Position: 58.8% below the Restaurants median (#308 of 352)
No single metric tells the full story. See the HAM:0YU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yum China is the largest restaurant operator in China, with over 18,000 locations and USD 12 billion in systemwide sales as of 2025. It generates revenue primarily from its own restaurants and franchise fees. While KFC and Pizza Hut are its flagship brands, Yum China's portfolio also includes Little Sheep, Taco Bell, Huang Ji Huang, and Lavazza.As a trademark licensee of Yum Brands, Yum China pays 3% of KFC and Pizza Hut's systemwide sales to its former parent, from which it spun off in 2016. However, even before the separation, Yum China was granted substantial autonomy, giving its Chinese leadership decision-making authority over menu, supply chain, and marketing—an unusual practice for Western chains at the time.
81GF Score
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