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Yum China Holdings

NYSE:YUMC
Snowflake Description

Outstanding track record with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
YUMC
NYSE
$16B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Yum China Holdings, Inc. owns, operates, and franchises restaurants in China. The last earnings update was 22 days ago. More info.


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  • Yum China Holdings has significant price volatility in the past 3 months.
YUMC Share Price and Events
7 Day Returns
5%
NYSE:YUMC
1.8%
US Hospitality
1.2%
US Market
1 Year Returns
8%
NYSE:YUMC
-8.6%
US Hospitality
3%
US Market
YUMC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Yum China Holdings (YUMC) 5% 4.9% 33.9% 8% - -
US Hospitality 1.8% 0.4% 16.7% -8.6% 36.5% 17.5%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • YUMC outperformed the Hospitality industry which returned -8.6% over the past year.
  • YUMC outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
YUMC
Industry
5yr Volatility vs Market

Value

 Is Yum China Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Yum China Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Yum China Holdings.

NYSE:YUMC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:YUMC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.965 (1 + (1- 25%) (0.15%))
0.977
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.977 * 5.96%)
8.55%

Discounted Cash Flow Calculation for NYSE:YUMC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Yum China Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:YUMC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.55%)
2019 694.00 Analyst x6 639.31
2020 719.40 Analyst x5 610.48
2021 808.50 Analyst x4 632.03
2022 806.71 Est @ -0.22% 580.93
2023 812.07 Est @ 0.66% 538.70
2024 822.49 Est @ 1.28% 502.62
2025 836.62 Est @ 1.72% 470.97
2026 853.53 Est @ 2.02% 442.62
2027 872.60 Est @ 2.23% 416.85
2028 893.39 Est @ 2.38% 393.15
Present value of next 10 years cash flows $5,227.67
NYSE:YUMC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $893.39 × (1 + 2.73%) ÷ (8.55% – 2.73%)
$15,756.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,756.92 ÷ (1 + 8.55%)10
$6,934.06
NYSE:YUMC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,227.67 + $6,934.06
$12,161.72
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,161.72 / 379.06
$32.08
NYSE:YUMC Discount to Share Price
Calculation Result
Value per share (USD) From above. $32.08
Current discount Discount to share price of $43.19
= -1 x ($43.19 - $32.08) / $32.08
-34.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Yum China Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Yum China Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Yum China Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:YUMC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.84
NYSE:YUMC Share Price ** NYSE (2019-03-20) in USD $43.19
United States of America Hospitality Industry PE Ratio Median Figure of 73 Publicly-Listed Hospitality Companies 20.95x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Yum China Holdings.

NYSE:YUMC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:YUMC Share Price ÷ EPS (both in USD)

= 43.19 ÷ 1.84

23.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Yum China Holdings is overvalued based on earnings compared to the US Hospitality industry average.
  • Yum China Holdings is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Yum China Holdings's expected growth come at a high price?
Raw Data
NYSE:YUMC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
2.7%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 52 Publicly-Listed Hospitality Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:YUMC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.43x ÷ 2.7%

8.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Yum China Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Yum China Holdings's assets?
Raw Data
NYSE:YUMC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $7.58
NYSE:YUMC Share Price * NYSE (2019-03-20) in USD $43.19
United States of America Hospitality Industry PB Ratio Median Figure of 108 Publicly-Listed Hospitality Companies 2.15x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:YUMC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:YUMC Share Price ÷ Book Value per Share (both in USD)

= 43.19 ÷ 7.58

5.7x

* Primary Listing of Yum China Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Yum China Holdings is overvalued based on assets compared to the US Hospitality industry average.
X
Value checks
We assess Yum China Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Yum China Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Yum China Holdings expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Yum China Holdings expected to grow at an attractive rate?
  • Yum China Holdings's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Yum China Holdings's earnings growth is positive but not above the United States of America market average.
  • Yum China Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:YUMC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:YUMC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 2.7%
NYSE:YUMC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 5.9%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 11.2%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:YUMC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:YUMC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 10,065 1,308 771 8
2020-12-31 9,299 1,211 701 13
2019-12-31 8,731 1,100 643 13
NYSE:YUMC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 8,415 1,333 708
2018-09-30 7,748 1,072 532
2018-06-30 7,666 1,099 505
2018-03-31 7,439 1,099 487
2017-12-31 7,769 884 398
2016-12-31 7,075 866 498

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Yum China Holdings's earnings are expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
  • Yum China Holdings's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:YUMC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Yum China Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:YUMC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.02 2.15 1.93 6.00
2020-12-31 1.83 2.01 1.71 11.00
2019-12-31 1.66 1.79 1.57 11.00
NYSE:YUMC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.84
2018-09-30 1.38
2018-06-30 1.31
2018-03-31 1.26
2017-12-31 1.03
2016-12-31 1.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Yum China Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Yum China Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Yum China Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Yum China Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Yum China Holdings's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Yum China Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Yum China Holdings's 1-year earnings growth exceeds its 5-year average (77.9% vs 27.7%)
  • Yum China Holdings's earnings growth has exceeded the US Hospitality industry average in the past year (77.9% vs 11.4%).
Earnings and Revenue History
Yum China Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Yum China Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:YUMC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 8,415.00 708.00 797.00
2018-09-30 7,748.00 532.00 815.00
2018-06-30 7,666.00 505.00 819.00
2018-03-31 7,439.00 487.00 836.00
2017-12-31 7,769.00 398.00 828.00
2016-12-31 7,075.00 498.00 761.00
2015-12-31 6,909.00 323.00 722.00
2014-12-31 6,934.00 -7.00 717.00
2013-12-31 6,905.00 126.00 702.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Yum China Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Yum China Holdings used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Yum China Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Yum China Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Yum China Holdings has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Yum China Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Yum China Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Yum China Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Yum China Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Yum China Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 78.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Yum China Holdings Company Filings, last reported 2 months ago.

NYSE:YUMC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,977.00 25.00 1,388.00
2018-09-30 3,088.00 26.00 1,532.00
2018-06-30 3,101.00 27.00 1,539.00
2018-03-31 3,203.00 29.00 1,594.00
2017-12-31 2,847.00 28.00 1,264.00
2016-12-31 2,443.00 28.00 964.00
2015-12-31 1,985.00 35.00 425.00
2014-12-31 1,954.00 34.00 238.00
2013-12-31
  • Yum China Holdings's level of debt (0.8%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Yum China Holdings's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (5332%, greater than 20% of total debt).
  • Yum China Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Yum China Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Yum China Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Yum China Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.11%
Current annual income from Yum China Holdings dividends. Estimated to be 1.23% next year.
If you bought $2,000 of Yum China Holdings shares you are expected to receive $22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Yum China Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Yum China Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:YUMC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 46 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:YUMC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.56 9.00
2020-12-31 0.54 11.00
2019-12-31 0.50 11.00
NYSE:YUMC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-31 0.480 1.166
2018-10-30 0.480 1.371
2018-08-08 0.400 1.167
2018-08-01 0.400 1.144
2018-05-04 0.400 1.052
2018-05-01 0.400 1.038
2018-02-27 0.400 0.975
2018-02-07 0.400 0.965
2017-10-06 0.400 0.946
2017-10-05 0.400 0.990

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Yum China Holdings has stable dividend payments.
  • Yum China Holdings only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Yum China Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).
X
Income/ dividend checks
We assess Yum China Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Yum China Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Yum China Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Yum China Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joey Wat
COMPENSATION $7,567,483
AGE 47
TENURE AS CEO 1 years
CEO Bio

Ms. Joey Wat has been the Chief Executive Officer of Yum! China Holding, Inc since March 1, 2018 and has served as its President and Chief Operating Officer since February 7, 2017 until February 2018. Ms. Wat has been a Director of Yum! China Holding, Inc since July 2017. Ms. Wat served as Chief Executive Officer, KFC from October 2016 to February 2017, a position she held at Yum! Restaurants China from August 2015 to October 2016. Ms. Wat joined Yum! Restaurants China in September 2014 as President of KFC China and was promoted to Chief Executive Officer for KFC China in August 2015. Before joining YUM, Ms. Wat served in both management and strategy positions at AS Watson of Hutchison Group (“Watson”), an international health, beauty and lifestyle retailer, in the U.K. from 2004 to 2014. Her last position at Watson was Managing Director of Watson U.K., which operates Superdrug and Savers, two retail chains specializing in the sale of pharmacy and health and beauty products, from 2012 to 2014. She made the transition from Head of Strategy of Watson in Europe to Managing Director of Savers in 2007. Before joining Watson, Ms. Wat spent seven years in management consulting including with McKinsey & Company’s Hong Kong office from 2000 to 2003.

CEO Compensation
  • Joey's compensation has increased by more than 20% in the past year.
  • Joey's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Yum China Holdings management team in years:

1.9
Average Tenure
48
Average Age
  • The average tenure for the Yum China Holdings management team is less than 2 years, this suggests a new team.
Management Team

Joey Wat

TITLE
CEO & Director
COMPENSATION
$8M
AGE
47
TENURE
1 yrs

Micky Pant

TITLE
Vice Chairman & Senior Advisor
COMPENSATION
$10M
AGE
63

Jacky Lo

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
41
TENURE
1.8 yrs

Shella Ng

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
$4M
AGE
53
TENURE
2.4 yrs

Johnson Huang

TITLE
General Manager of KFC
COMPENSATION
$3M
AGE
56
TENURE
2.1 yrs

Xueling Lu

TITLE
Controller & Principal Accounting Officer
AGE
44
TENURE
1.2 yrs

Leila Zhang

TITLE
Chief Technology Officer

Christie Ju

TITLE
Vice President of Finance & Investor Relations

Alice Wang

TITLE
Chief Public Affairs Officer
AGE
48
TENURE
2 yrs

Steven Li

TITLE
Chief Marketing Officer
Board of Directors Tenure

Average tenure and age of the Yum China Holdings board of directors in years:

2.4
Average Tenure
61
Average Age
  • The average tenure for the Yum China Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Fred Hu

TITLE
Non-Executive Chairman
COMPENSATION
$460K
AGE
55
TENURE
2.3 yrs

Joey Wat

TITLE
CEO & Director
COMPENSATION
$8M
AGE
47
TENURE
1.7 yrs

Micky Pant

TITLE
Vice Chairman & Senior Advisor
COMPENSATION
$10M
AGE
63
TENURE
1 yrs

Elias Ettedgui

TITLE
Independent Director
COMPENSATION
$240K
AGE
64
TENURE
2.4 yrs

Louis Hsieh

TITLE
Independent Director
COMPENSATION
$245K
AGE
54
TENURE
2.4 yrs

Pete Bassi

TITLE
Independent Director
COMPENSATION
$225K
AGE
69
TENURE
2.4 yrs

Christian Campbell

TITLE
Director
COMPENSATION
$225K
AGE
67
TENURE
2.4 yrs

Ed Chan

TITLE
Independent Director
COMPENSATION
$225K
AGE
55
TENURE
2.4 yrs

Jon Linen

TITLE
Independent Director
COMPENSATION
$225K
AGE
74
TENURE
2.4 yrs

Zili Shao

TITLE
Independent Director
COMPENSATION
$225K
AGE
59
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • Yum China Holdings insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Feb 19 Sell Ted Lee Individual 11. Feb 19 11. Feb 19 -2,246 $40.98 $-92,036
15. Nov 18 Sell Ted Lee Individual 14. Nov 18 14. Nov 18 -3,795 $36.26 $-137,612
13. Nov 18 Sell Riu Sun Individual 12. Nov 18 12. Nov 18 -5,869 $36.50 $-214,219
07. Jun 18 Buy Joey Wat Individual 06. Jun 18 07. Jun 18 24,400 $41.00 $999,547
X
Management checks
We assess Yum China Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Yum China Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Note On Yum China Holdings, Inc.'s (NYSE:YUMC) ROE and Debt To Equity

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Yum China Holdings has a return on equity of 18% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Yum China Holdings Inc (NYSE:YUMC)'s Return on Capital

and want to better understand how you can grow your money by investing in Yum China Holdings Inc (NYSE:YUMC). … As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide. … Thus, to understand how your money can grow by investing in Yum China Holdings, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Is Yum China Holdings Inc (NYSE:YUMC) An Attractive Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Does Yum China Holdings tick all the boxes of a great dividend stock? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Should You Be Tempted To Sell Yum China Holdings Inc (NYSE:YUMC) At Its Current PE Ratio?

Yum China Holdings Inc (NYSE:YUMC) is currently trading at a trailing P/E of 26.3x, which is higher than the industry average of 21.7x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind. … View our latest analysis for Yum China Holdings

Simply Wall St -

How Yum China Holdings Inc (NYSE:YUMC) Delivered A Better ROE Than Its Industry

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface. … See our latest analysis for Yum China Holdings

Simply Wall St -

Calculating The Intrinsic Value Of Yum China Holdings Inc (NYSE:YUMC)

Does the share price for Yum China Holdings Inc (NYSE:YUMC) reflect it's really worth? … by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF).

Simply Wall St -

April Growth Opportunities – Yum China Holdings And More

Profit growth, coupled with top-line expansion, is a positive indication. … Moreover, the 11.90% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. … Moreover, the substantial growth of over 100% in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities.

Simply Wall St -

Yum China Holdings Inc (NYSE:YUMC): What Are The Future Prospects?

The most recent earnings update Yum China Holdings Inc's (NYSE:YUMC) released in December 2017 indicated that the business endured a immense headwind with earnings declining by -19.72%. … Today I want to provide a brief commentary on how market analysts view Yum China Holdings's earnings growth outlook over the next few years and whether the future looks brighter. … See our latest analysis for Yum China Holdings Analysts' outlook for the coming year seems positive, with earnings growing by a significant 60.03%.

Simply Wall St -

Is Yum China Holdings Inc's (NYSE:YUMC) PE Ratio A Signal To Sell For Investors?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for YUMC Price per share = $45.55 Earnings per share = $1.365 ∴ Price-Earnings Ratio = $45.55 ÷ $1.365 = 33.4x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … YUMC’s P/E of 33.4x is higher than its industry peers (24.2x), which implies that each dollar of YUMC’s earnings is being overvalued by investors.

Simply Wall St -

What Investors Should Know About Yum China Holdings Inc's (YUMC) Financial Strength

NYSE:YUMC Historical Debt Dec 5th 17 A basic way to evaluate YUMC's debt management is to see whether the cash flow generated from the business is at a relatively high level compared to the debt capital invested. … In the case of YUMC, operating cash flow over the past twelve months do cover its current debt,which indicates extremely low risk of YUMC not being able to meet its debt near-team, given that it generates enough cash in a year to pay off its current debt.This is great news for both debtholders and shareholders, as the company exhibits cautious cash and debt management. … YUMC’s relatively safe debt levels is even more impressive due to its ability to generate high cash flow, which illustrates operating efficiency.

Simply Wall St -

Company Info

Description

Yum China Holdings, Inc. owns, operates, and franchises restaurants in China. The company operates in two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Taco Bell, East Dawning, Little Sheep, and COFFii & JOY brands, which specialize in chicken, pizza, hot pot cooking, Chinese food, Mexican-style food, and coffee categories. The company also provides online food delivery services. As of December 31, 2018, it operated approximately 5,900 KFC restaurants; 2,200 Pizza Hut restaurants; 280 Little Sheep units; 14 East Dawning restaurants; 4 Taco Bell restaurants; and 13 COFFii & JOY units. Yum China Holdings, Inc. was incorporated in 2016 and is headquartered in Shanghai, the People's Republic of China.

Details
Name: Yum China Holdings, Inc.
YUMC
Exchange: NYSE
Founded: 2016
$16,371,452,653
379,056,556
Website: http://www.yumchina.com
Address: Yum China Holdings, Inc.
Yum China Building,
20 Tian Yao Qiao Road,
Shanghai,
200030,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE YUMC Common Stock New York Stock Exchange US USD 17. Oct 2016
DB 0YU Common Stock Deutsche Boerse AG DE EUR 17. Oct 2016
LSE 0M30 Common Stock London Stock Exchange GB USD 17. Oct 2016
BMV YUMC * Common Stock Bolsa Mexicana de Valores MX MXN 17. Oct 2016
Number of employees
Current staff
Staff numbers
450,000
Yum China Holdings employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 01:02
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.