Yum China HoldingsHAM:0YU -0.28%81 ROE % is 23.01% as of Mar. 2026, which is 43% above its 10-year median of 16.11. GuruFocus rates HAM:0YU with a GF Score™ of 81/100 and a GF Value™ of €47.21 (Modestly Undervalued). Among 345 Restaurants companies, Yum China Holdings ranks better than 74.49% on this metric.
The historical rank and industry rank for Yum China Holdings's ROE % or its related term are showing as below:
HAM:0YU'
s ROE % Range Over the Past 10 Years
Min: 6.53 Med: 16.11 Max: 25.12
Current: 16.85
During the past 13 years, Yum China Holdings's highest ROE % was 25.12%. The lowest was 6.53%. And the median was 16.11%.
HAM:0YU's ROE % is ranked better than 74.49% of 345
companies
in the Restaurants industry
Industry Median: 6.42
vs HAM:0YU: 16.85
Yum China Holdings (HAM:0YU) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Yum China Holdings ROE % Related Terms
Yum China Holdings ROE % Historical Data
* Premium members only.
The historical data trend for Yum China Holdings's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Yum China Holdings (HAM:0YU) has a ROE % of 23.01% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Yum China Holdings and its competitors. This is 43% above median its historical median of 16.11. Over the past decade, Yum China Holdings' ROE % has ranged from 6.53 to 25.12. According to the industry distribution chart, Yum China Holdings ranks #88 out of 345 companies in the Restaurants industry, placing it in the top 25.5%.
Is Yum China Holdings' ROE % too high?
Yum China Holdings' current ROE % of 23.01% is 43% above median its 10-year median of 16.11. Over the past 10 years, this metric has ranged from a low of 6.53 to a high of 25.12. The Restaurants industry median ROE % is 6.42. Yum China Holdings' value of 23.01% is 258.4% above this industry median. Based on the distribution chart, Yum China Holdings ranks #88 out of 345 companies in the Restaurants industry, which is above the industry midpoint. 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' ROE % compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #88 out of 345 companies for ROE %. This puts Yum China Holdings in the upper half of its industry. The industry median ROE % is 6.42. Yum China Holdings' value of 23.01% is 258.4% above this benchmark. Historically, Yum China Holdings' own ROE % has ranged from 6.53 to 25.12 over the past decade. While the company's 10-year median is 16.11 vs. the industry median of 6.42, 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 ROE % for a Restaurants company?
The median ROE % among Restaurants companies is 6.42, based on 345 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum China Holdings's current ROE % of 23.01% is 258.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Yum China Holdings and its competitors. For the Restaurants industry, the median ROE % is 6.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current ROE % is 23.01%, which is 43% above median its own 10-year median of 16.11. 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 ROE % is 23.01%, which is 43% above median its 10-year median of 16.11 and 258.4% above the Restaurants industry median of 6.42. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Yum China Holdings (HAM:0YU), the current ROE % is 23.01% 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:
ROE %: 23.01% (43% above median its 10-year median of 16.11)
GF Value™: €47.21 vs. price of €35.80 (24.2% below fair value)
Industry Position: 258.4% above the Restaurants median (#88 of 345)
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.
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