YUMC (Yum China Holdings) Moat Score: 6/10 (As of Jul. 07, 2026)


YUMC Yum China Holdings Inc YUMC
81 GF Score
Price $42.22
GF Value $54.06
Valuation Modestly Undervalued
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What is Yum China Holdings Moat Score?

Yum China Holdings YUMC -0.64% 81 Moat Score is 6 as of Jul. 07, 2026. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $54.06 (Modestly Undervalued). Among 365 Restaurants companies, Yum China Holdings ranks better than 97.26% on this metric.

Yum China Holdings has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Yum China Holdings has Narrow Moat: Yum China has a strong narrow moat with a leading market position in China, strong brand recognition, and a robust distribution network. However, regulatory challenges and competition limit its moat to narrow.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Yum China Holdings might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Yum China Holdings  (NYSE:YUMC) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Yum China Holdings Moat Score Related Terms

YUMC vs TXRH, DPZ, BROS: Moat Score Comparison

For the Restaurants subindustry, Yum China Holdings's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where Yum China Holdings's Moat Score falls into.


YUMC
81GF Score
Yum China Holdings Inc YUMC
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Yum China Holdings (YUMC) has a Moat Score of 6 as of Jul. 07, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Yum China Holdings ranks #10 out of 365 companies in the Restaurants industry, placing it in the top 2.7%.
Is Yum China Holdings' Moat Score too high?
Yum China Holdings' current Moat Score is 6. Based on the distribution chart, Yum China Holdings ranks #10 out of 365 companies in the Restaurants industry, which is in the top quartile — a strong position 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' Moat Score compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #10 out of 365 companies for Moat Score. This places Yum China Holdings in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Restaurants company?
A good Moat Score depends on the Restaurants industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Yum China Holdings's current Moat Score is 6. 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 (YUMC) is currently considered Modestly Undervalued. The stock's GF Value™ is $54.06, compared to a current price of $42.22 — trading 21.9% below its estimated fair value. The current Moat Score is 6. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current Moat Score is 6 as of Jul. 07, 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 (YUMC) Overvalued in 2026?

Based on GuruFocus' analysis, Yum China Holdings stock appears to be undervalued. The current stock price of $42.22 is trading 21.9% below its estimated GF Value™ of $54.06. GuruFocus considers Yum China Holdings to be Modestly Undervalued.

Key valuation signals for YUMC:

  • Moat Score: 6
  • GF Value™: $54.06 vs. price of $42.22 (21.9% below fair value)
  • GF Score™: 81/100

No single metric tells the full story. See the YUMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Yum China Holdings Business Description

Address 20 Tian Yao Qiao Road, Yum China Building, Shanghai, CHN, 200030
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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$42.22
Price
$54.06
GF Value