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Yum China HoldingsYUMC +0.67%81 ROC (Joel Greenblatt) % is 36.78% as of Mar. 2026, which is 35% above its 10-year median of 27.19. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $54.35 (Modestly Undervalued). Among 361 Restaurants companies, Yum China Holdings ranks better than 80.61% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Yum China Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 36.78%.
The historical rank and industry rank for Yum China Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:
YUMC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 14.3 Med: 27.19 Max: 50.21
Current: 29.27
During the past 13 years, Yum China Holdings's highest ROC (Joel Greenblatt) % was 50.21%. The lowest was 14.30%. And the median was 27.19%.
YUMC's ROC (Joel Greenblatt) % is ranked better than 80.61% of 361
companies
in the Restaurants industry
Industry Median: 8.42
vs YUMC: 29.27
Yum China Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 11.90% per year.
Yum China Holdings (NYSE:YUMC) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Yum China Holdings ROC (Joel Greenblatt) % Related Terms
Yum China Holdings ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Yum China Holdings's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Restaurants subindustry, Yum China Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's ROC (Joel Greenblatt) % falls into.
Yum China Holdings ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 36.78% mean?
Yum China Holdings (YUMC) has a ROC (Joel Greenblatt) % of 36.78% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Yum China Holdings and its competitors. This is 35% above median its historical median of 27.19. Over the past decade, Yum China Holdings' ROC (Joel Greenblatt) % has ranged from 14.30 to 50.21. According to the industry distribution chart, Yum China Holdings ranks #70 out of 361 companies in the Restaurants industry, placing it in the top 19.4%.
Is Yum China Holdings' ROC (Joel Greenblatt) % too high?
Yum China Holdings' current ROC (Joel Greenblatt) % of 36.78% is 35% above median its 10-year median of 27.19. Over the past 10 years, this metric has ranged from a low of 14.30 to a high of 50.21. The Restaurants industry median ROC (Joel Greenblatt) % is 8.42. Yum China Holdings' value of 36.78% is 336.8% above this industry median. Based on the distribution chart, Yum China Holdings ranks #70 out of 361 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' ROC (Joel Greenblatt) % compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #70 out of 361 companies for ROC (Joel Greenblatt) %. This places Yum China Holdings in the top 19% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 8.42. Yum China Holdings' value of 36.78% is 336.8% above this benchmark. Historically, Yum China Holdings' own ROC (Joel Greenblatt) % has ranged from 14.30 to 50.21 over the past decade. While the company's 10-year median is 27.19 vs. the industry median of 8.42, 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 ROC (Joel Greenblatt) % for a Restaurants company?
The median ROC (Joel Greenblatt) % among Restaurants companies is 8.42, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum China Holdings's current ROC (Joel Greenblatt) % of 36.78% is 336.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Yum China Holdings and its competitors. For the Restaurants industry, the median ROC (Joel Greenblatt) % is 8.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current ROC (Joel Greenblatt) % is 36.78%, which is 35% above median its own 10-year median of 27.19. 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 $54.35, compared to a current price of $43.40 — trading 20.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 36.78%, which is 35% above median its 10-year median of 27.19 and 336.8% above the Restaurants industry median of 8.42. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current ROC (Joel Greenblatt) % is 36.78% 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 $43.40 is trading 20.1% below its estimated GF Value™ of $54.35.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for YUMC:
ROC (Joel Greenblatt) %: 36.78% (35% above median its 10-year median of 27.19)
GF Value™: $54.35 vs. price of $43.40 (20.1% below fair value)
Industry Position: 336.8% above the Restaurants median (#70 of 361)
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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