Yum China - AI Stock Analysis

Analysis generated December 22, 2025

Yum China Holdings, Inc. is a Fortune 500 company and a licensee of Yum! Brands in mainland China. The company is chiefly involved in the operation of various fast-food chains, including prominent brands like KFC, Pizza Hut, and Taco Bell. As the largest restaurant chain in China, Yum China has a significant market presence and wide recognition, with thousands of stores across the country.

Fundamental Analysis

Yum China reported a revenue of $3.21 billion in the last quarter, marking a significant rise of 15.03% from the previous quarter. This is a clear indication of robust short-term growth. On a year-over-year basis, the revenue increased by 4.40%, suggesting sustained growth momentum.

The net income for the last quarter was $282 million, showing a 31.16% growth compared to the previous quarter. However, there was a slight year-over-year decline of 5.05%, which might raise concerns regarding long-term profitability.

The EBITDA for the last quarter stood at $527 million, up by 24.00% from the previous quarter and by 5.61% year-over-year, further indicating the company's healthy earnings performance.

The current Price-to-Earnings (P/E) ratio of 20.09 is within the average range for the industry, neither overly high nor low, suggesting that the stock’s valuation is in a reasonable territory.

However, it is important to note that there have been insider sales of the company’s stock in the last couple of months, which could indicate potential bearish sentiment among the company's leadership.

Technical Analysis

The current stock price is $48.53, up by 1.57% from a month ago, showing a positive short-term trend. Year-over-year, the stock price has increased by 1.83%, suggesting a positive long-term trajectory.

However, the overall trend remains bearish. The 10-day Simple Moving Average (SMA10) is currently $48.23, which is marginally lower than the previous SMA10. This signifies a potential downward trend in the price movement, indicating caution.

The Relative Strength Index (RSI) stands at 27.5, which falls into the oversold category. This could imply a potential buying opportunity as the stock may be undervalued at its current price.

Alternative Data Analysis

Looking at job postings and employee sentiment, Yum China has 0 open positions according to recent data, a 100% decrease over the last couple of months. This might indicate cost-cutting measures or attempts at improving margins, which is generally not a positive sign for a growing company.

Employee outlook remains neutral, indicating a balanced perspective on the company’s future from an internal viewpoint.

On the customer acquisition front, Yum China's website has estimated 40,000 visitors, down by 11% in recent months, suggesting a concerning trend in customer interest and engagement.

AltIndex AI score, which predicts stock performance based on various data sets including fundamental, technical, and alternative data, rates Yum China with a score of 55, categorizing it as a hold signal.

Conclusion

Yum China shows notable strengths in revenue and earnings growth in the short term, with a stable P/E ratio suggesting a fair valuation. However, the insider sales and bearish trend present cautionary signals. The reduction in job postings and web traffic further raise concerns about long-term growth and customer engagement.

Based on the comprehensive analysis of fundamental, technical, and alternative data, Yum China appears to be a moderate-risk investment with a balanced outlook. Given these factors, the prudent recommendation would be to hold, closely monitoring future earnings reports and market conditions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.