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Yum China HoldingsYUMC +3.68%81 5-Year Yield-on-Cost % is 6.83 as of Aug. 02, 2026, which is 113% above its 10-year median of 3.20. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $54.32 (Modestly Undervalued). Among 190 Restaurants companies, Yum China Holdings ranks better than 80.53% on this metric.
Yum China Holdings's yield on cost for the quarter that ended in Jun. 2026 was 6.83.
The historical rank and industry rank for Yum China Holdings's 5-Year Yield-on-Cost % or its related term are showing as below:
YUMC'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.65 Med: 3.2 Max: 7.81
Current: 6.83
During the past 13 years, Yum China Holdings's highest Yield on Cost was 7.81. The lowest was 0.65. And the median was 3.20.
YUMC's 5-Year Yield-on-Cost % is ranked better than 80.53% of 190
companies
in the Restaurants industry
Industry Median: 2.515
vs YUMC: 6.83
Yum China Holdings (NYSE:YUMC) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Yum China Holdings 5-Year Yield-on-Cost % Related Terms
YUMC vs TXRH, DPZ, LKNCY: 5-Year Yield-on-Cost % Comparison
For the Restaurants subindustry, Yum China Holdings's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's 5-Year Yield-on-Cost % falls into.
Yum China Holdings 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Yum China Holdings (YUMC) has a 5-Year Yield-on-Cost % of 6.83 as of Aug. 02, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Yum China Holdings and its competitors. This is 113% above median its historical median of 3.20. Over the past decade, Yum China Holdings' 5-Year Yield-on-Cost % has ranged from 0.65 to 7.81. According to the industry distribution chart, Yum China Holdings ranks #37 out of 190 companies in the Restaurants industry, placing it in the top 19.5%.
Is Yum China Holdings' 5-Year Yield-on-Cost % too high?
Yum China Holdings' current 5-Year Yield-on-Cost % of 6.83 is 113% above median its 10-year median of 3.20. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 7.81. The Restaurants industry median 5-Year Yield-on-Cost % is 2.52. Yum China Holdings' value of 6.83 is 171.6% above this industry median. Based on the distribution chart, Yum China Holdings ranks #37 out of 190 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' 5-Year Yield-on-Cost % compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #37 out of 190 companies for 5-Year Yield-on-Cost %. This places Yum China Holdings in the top 20% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 2.52. Yum China Holdings' value of 6.83 is 171.6% above this benchmark. Historically, Yum China Holdings' own 5-Year Yield-on-Cost % has ranged from 0.65 to 7.81 over the past decade. While the company's 10-year median is 3.20 vs. the industry median of 2.52, 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 5-Year Yield-on-Cost % for a Restaurants company?
The median 5-Year Yield-on-Cost % among Restaurants companies is 2.52, based on 190 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum China Holdings's current 5-Year Yield-on-Cost % of 6.83 is 171.6% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Yum China Holdings and its competitors. For the Restaurants industry, the median 5-Year Yield-on-Cost % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current 5-Year Yield-on-Cost % is 6.83, which is 113% above median its own 10-year median of 3.20. 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 $54.32, compared to a current price of $48.18 — trading 11.3% below its estimated fair value. The current 5-Year Yield-on-Cost % is 6.83, which is 113% above median its 10-year median of 3.20 and 171.6% above the Restaurants industry median of 2.52. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current 5-Year Yield-on-Cost % is 6.83 as of Aug. 02, 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 $48.18 is trading 11.3% below its estimated GF Value™ of $54.32.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for YUMC:
5-Year Yield-on-Cost %: 6.83 (113% above median its 10-year median of 3.20)
GF Value™: $54.32 vs. price of $48.18 (11.3% below fair value)
Industry Position: 171.6% above the Restaurants median (#37 of 190)
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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