YUMC (Yum China Holdings) Operating Income: $1,413 Mil (TTM As of Jun. 2026)

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YUMC Yum China Holdings Inc YUMC
81 GF Score
Price $48.35
GF Value $54.39
Valuation Modestly Undervalued
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What is Yum China Holdings Operating Income?

Yum China Holdings YUMC +0.35% 81 Operating Income is $1,413 Mil as of Jun. 2026. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $54.39 (Modestly Undervalued).

Yum China Holdings's Operating Income for the three months ended in Jun. 2026 was $360 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was $1,413 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Yum China Holdings's Operating Income for the three months ended in Jun. 2026 was $360 Mil. Yum China Holdings's Revenue for the three months ended in Jun. 2026 was $3,138 Mil. Therefore, Yum China Holdings's Operating Margin % for the quarter that ended in Jun. 2026 was 11.47%.

Good Sign:

Yum China Holdings Inc operating margin is expanding. Margin expansion is usually a good sign.

Yum China Holdings's 5-Year average Growth Rate for Operating Margin % was 8.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Yum China Holdings's annualized ROC % for the quarter that ended in Jun. 2026 was 12.45%. Yum China Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 30.37%.


Yum China Holdings  (NYSE:YUMC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Yum China Holdings's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=1440 * ( 1 - 25.99% )/( (8538 + 8587)/ 2 )
=1065.744/8562.5
=12.45 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Yum China Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1440/( ( (4745 + max(-1394, 0)) + (4737 + max(-1406, 0)) )/ 2 )
=1440/( ( 4745 + 4737 )/ 2 )
=1440/4741
=30.37 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(103 + 414 + 373) - (2284 + 214 + -214)
=-1394

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(115 + 459 + 390) - (2370 + 0 + 0)
=-1406

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Yum China Holdings's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 )/Revenue (Q: Jun. 2026 )
=360/3138
=11.47 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Yum China Holdings Operating Income Related Terms


Yum China Holdings Operating Income Historical Data

* Premium members only.

The historical data trend for Yum China Holdings's Operating Income 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.

Yum China Holdings Operating Income Chart

Yum China Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 734.00 658.00 1,135.00 1,200.00 1,326.00

Yum China Holdings Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 315.00 404.00 202.00 447.00 360.00
YUMC
81GF Score
Yum China Holdings Inc YUMC
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Yum China Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,413 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $1,413 Mil mean?
Yum China Holdings (YUMC) has a Operating Income of $1,413 Mil as of Jun. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Yum China Holdings and its competitors.
Is Yum China Holdings' Operating Income too high?
Yum China Holdings' current Operating Income is $1,413 Mil. 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' Operating Income compare to TXRH and DPZ?
Yum China Holdings' Operating Income of $1,413 Mil can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Restaurants company?
A good Operating Income depends on the Restaurants industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Yum China Holdings and its competitors. Yum China Holdings's current Operating Income is $1,413 Mil. 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 $54.39, compared to a current price of $48.35 — trading 11.1% below its estimated fair value. The current Operating Income is $1,413 Mil. 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 Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current Operating Income is $1,413 Mil as of Jun. 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 $48.35 is trading 11.1% below its estimated GF Value™ of $54.39. GuruFocus considers Yum China Holdings to be Modestly Undervalued.

Key valuation signals for YUMC:

  • Operating Income: $1,413 Mil
  • GF Value™: $54.39 vs. price of $48.35 (11.1% 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

Get the complete analysis for YUMC

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$48.35
Price
$54.39
GF Value