Yum China HoldingsYUMC +0.22%81 Net Margin % is 9.45% as of Mar. 2026, which is 19% above its 10-year median of 7.97. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $53.83 (Modestly Undervalued). Among 366 Restaurants companies, Yum China Holdings ranks better than 83.88% on this metric.
The historical rank and industry rank for Yum China Holdings's Net Margin % or its related term are showing as below:
YUMC'
s Net Margin % Range Over the Past 10 Years
Min: 4.62 Med: 7.97 Max: 10.05
Current: 7.83
YUMC's Net Margin % is ranked better than 83.88% of 366
companies
in the Restaurants industry
Industry Median: 2.06
vs YUMC: 7.83
Yum China Holdings (NYSE:YUMC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Yum China Holdings Net Margin % Related Terms
Yum China Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for Yum China Holdings's Net 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.
For the Restaurants subindustry, Yum China Holdings's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's Net 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.
Yum China Holdings (YUMC) has a Net Margin % of 9.45% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Yum China Holdings and its competitors. This is 19% above median its historical median of 7.97. Over the past decade, Yum China Holdings' Net Margin % has ranged from 4.62 to 10.05. According to the industry distribution chart, Yum China Holdings ranks #59 out of 366 companies in the Restaurants industry, placing it in the top 16.1%.
Is Yum China Holdings' Net Margin % too high?
Yum China Holdings' current Net Margin % of 9.45% is 19% above median its 10-year median of 7.97. Over the past 10 years, this metric has ranged from a low of 4.62 to a high of 10.05. The Restaurants industry median Net Margin % is 2.06. Yum China Holdings' value of 9.45% is 358.7% above this industry median. Based on the distribution chart, Yum China Holdings ranks #59 out of 366 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' Net Margin % compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #59 out of 366 companies for Net Margin %. This places Yum China Holdings in the top 16% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.06. Yum China Holdings' value of 9.45% is 358.7% above this benchmark. Historically, Yum China Holdings' own Net Margin % has ranged from 4.62 to 10.05 over the past decade. While the company's 10-year median is 7.97 vs. the industry median of 2.06, Yum China Holdings has consistently been above 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 Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.06, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum China Holdings's current Net Margin % of 9.45% is 358.7% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Yum China Holdings and its competitors. For the Restaurants industry, the median Net Margin % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current Net Margin % is 9.45%, which is 19% above median its own 10-year median of 7.97. 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 $53.83, compared to a current price of $41.05 — trading 23.7% below its estimated fair value. The current Net Margin % is 9.45%, which is 19% above median its 10-year median of 7.97 and 358.7% above the Restaurants industry median of 2.06. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current Net Margin % is 9.45% 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 (YUMC) Overvalued in 2026?
Based on GuruFocus' analysis, Yum China Holdings stock appears to be undervalued.
The current stock price of $41.05 is trading 23.7% below its estimated GF Value™ of $53.83.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for YUMC:
Net Margin %: 9.45% (19% above median its 10-year median of 7.97)
GF Value™: $53.83 vs. price of $41.05 (23.7% below fair value)
Industry Position: 358.7% above the Restaurants median (#59 of 366)
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 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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