Investors with an interest in Retail - Restaurants stocks have likely encountered both Yum China Holdings (YUMC) and Chipotle Mexican Grill (CMG). But which of these two stocks presents investors with the better value opportunity right now?
Yum China Holdings dominates the improving Western-style fast food industry in China and has a wide moat. A commitment to opening over 1000 units/year will drive mid-double-digit EPS growth over the next three years. YUMC's free cash flow generation has returned to pre-covid levels and they are committed to a healthy return of capital to shareholders.
Yum China (YUMC) is well positioned to outperform the market, as it exhibits above-average growth in financials.
Restaurants Industry | Consumer Cyclical Sector | Joey Wat CEO | XSTU Exchange | US98850P1093 ISIN |
CN Country | 140,000 Employees | 28 May 2025 Last Dividend | - Last Split | 17 Oct 2016 IPO Date |
Yum China Holdings, Inc. is a leading company in the restaurant industry, based in the People's Republic of China. Since its inception in 1987, Yum China has established a notable presence in the Chinese dining market through ownership, operation, and franchising of numerous restaurant outlets across the country. Headquartered in Shanghai, the company has successfully diversified its portfolio by incorporating a wide range of dining concepts under its umbrella, including popular international and local brands. The segments under which it operates include KFC, Pizza Hut, and All Other, showcasing its ability to cater to a broad spectrum of culinary preferences and dining experiences.