Yum China HoldingsYUMC +1.81%81 Pretax Margin % is 13.82% as of Mar. 2026, which is 22% above its 10-year median of 11.36. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $54.02 (Modestly Undervalued). Among 360 Restaurants companies, Yum China Holdings ranks better than 87.5% on this metric.
The historical rank and industry rank for Yum China Holdings's Pretax Margin % or its related term are showing as below:
YUMC'
s Pretax Margin % Range Over the Past 10 Years
Min: 7.18 Med: 11.36 Max: 14.13
Current: 11.43
YUMC's Pretax Margin % is ranked better than 87.5% of 360
companies
in the Restaurants industry
Industry Median: 2.925
vs YUMC: 11.43
Yum China Holdings (NYSE:YUMC) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Yum China Holdings Pretax Margin % Related Terms
Yum China Holdings Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Yum China Holdings's Pretax 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.
YUMC vs TXRH, DPZ, BROS: Pretax Margin % Comparison
For the Restaurants subindustry, Yum China Holdings's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's Pretax 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 Pretax Margin % of 13.82% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Yum China Holdings and its competitors. This is 22% above median its historical median of 11.36. Over the past decade, Yum China Holdings' Pretax Margin % has ranged from 7.18 to 14.13. According to the industry distribution chart, Yum China Holdings ranks #45 out of 360 companies in the Restaurants industry, placing it in the top 12.5%.
Is Yum China Holdings' Pretax Margin % too high?
Yum China Holdings' current Pretax Margin % of 13.82% is 22% above median its 10-year median of 11.36. Over the past 10 years, this metric has ranged from a low of 7.18 to a high of 14.13. The Restaurants industry median Pretax Margin % is 2.93. Yum China Holdings' value of 13.82% is 372.5% above this industry median. Based on the distribution chart, Yum China Holdings ranks #45 out of 360 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' Pretax Margin % compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #45 out of 360 companies for Pretax Margin %. This places Yum China Holdings in the top 13% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.93. Yum China Holdings' value of 13.82% is 372.5% above this benchmark. Historically, Yum China Holdings' own Pretax Margin % has ranged from 7.18 to 14.13 over the past decade. While the company's 10-year median is 11.36 vs. the industry median of 2.93, 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 Pretax Margin % for a Restaurants company?
The median Pretax Margin % among Restaurants companies is 2.93, based on 360 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum China Holdings's current Pretax Margin % of 13.82% is 372.5% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Yum China Holdings and its competitors. For the Restaurants industry, the median Pretax Margin % is 2.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current Pretax Margin % is 13.82%, which is 22% above median its own 10-year median of 11.36. 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 $54.02, compared to a current price of $41.70 — trading 22.8% below its estimated fair value. The current Pretax Margin % is 13.82%, which is 22% above median its 10-year median of 11.36 and 372.5% above the Restaurants industry median of 2.93. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current Pretax Margin % is 13.82% 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 $41.70 is trading 22.8% below its estimated GF Value™ of $54.02.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for YUMC:
Pretax Margin %: 13.82% (22% above median its 10-year median of 11.36)
GF Value™: $54.02 vs. price of $41.70 (22.8% below fair value)
Industry Position: 372.5% above the Restaurants median (#45 of 360)
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.
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