Yum China HoldingsHAM:0YU -0.28%81 ROA % is 11.51% as of Mar. 2026, which is 33% above its 10-year median of 8.64. GuruFocus rates HAM:0YU with a GF Score™ of 81/100 and a GF Value™ of €47.21 (Modestly Undervalued). Among 366 Restaurants companies, Yum China Holdings ranks better than 82.51% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Yum China Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was €1,069 Mil.
Yum China Holdings's average Total Assets over the quarter that ended in Mar. 2026 was €9,291 Mil. Therefore, Yum China Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 11.51%.
The historical rank and industry rank for Yum China Holdings's ROA % or its related term are showing as below:
HAM:0YU'
s ROA % Range Over the Past 10 Years
Min: 3.53 Med: 8.64 Max: 15.92
Current: 8.66
During the past 13 years, Yum China Holdings's highest ROA % was 15.92%. The lowest was 3.53%. And the median was 8.64%.
HAM:0YU's ROA % is ranked better than 82.51% of 366
companies
in the Restaurants industry
Industry Median: 2.19
vs HAM:0YU: 8.66
Yum China Holdings (HAM:0YU) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Yum China Holdings ROA % Related Terms
Yum China Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Yum China Holdings's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Yum China Holdings (HAM:0YU) has a ROA % of 11.51% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Yum China Holdings and its competitors. This is 33% above median its historical median of 8.64. Over the past decade, Yum China Holdings' ROA % has ranged from 3.53 to 15.92. According to the industry distribution chart, Yum China Holdings ranks #64 out of 366 companies in the Restaurants industry, placing it in the top 17.5%.
Is Yum China Holdings' ROA % too high?
Yum China Holdings' current ROA % of 11.51% is 33% above median its 10-year median of 8.64. Over the past 10 years, this metric has ranged from a low of 3.53 to a high of 15.92. The Restaurants industry median ROA % is 2.19. Yum China Holdings' value of 11.51% is 425.6% above this industry median. Based on the distribution chart, Yum China Holdings ranks #64 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' ROA % compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #64 out of 366 companies for ROA %. This places Yum China Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 2.19. Yum China Holdings' value of 11.51% is 425.6% above this benchmark. Historically, Yum China Holdings' own ROA % has ranged from 3.53 to 15.92 over the past decade. While the company's 10-year median is 8.64 vs. the industry median of 2.19, 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 ROA % for a Restaurants company?
The median ROA % among Restaurants companies is 2.19, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum China Holdings's current ROA % of 11.51% is 425.6% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Yum China Holdings and its competitors. For the Restaurants industry, the median ROA % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current ROA % is 11.51%, which is 33% above median its own 10-year median of 8.64. 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 €47.21, compared to a current price of €35.80 — trading 24.2% below its estimated fair value. The current ROA % is 11.51%, which is 33% above median its 10-year median of 8.64 and 425.6% above the Restaurants industry median of 2.19. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Yum China Holdings (HAM:0YU), the current ROA % is 11.51% 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 €35.80 is trading 24.2% below its estimated GF Value™ of €47.21.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for HAM:0YU:
ROA %: 11.51% (33% above median its 10-year median of 8.64)
GF Value™: €47.21 vs. price of €35.80 (24.2% below fair value)
Industry Position: 425.6% above the Restaurants median (#64 of 366)
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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