Yum China Holdings, Inc. (YUMC): history, ownership, mission, how it works & makes money

Yum China Holdings, Inc. (YUMC): history, ownership, mission, how it works & makes money

CN | Consumer Cyclical | Restaurants | NYSE

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A Brief History of Yum China Holdings, Inc. (YUMC)

Company Overview

Yum China Holdings, Inc. (YUMC) is the largest restaurant company in China, operating over 9,000 restaurants across 1,400 cities as of 2023.

Key Financial Metrics 2023 Value
Total Revenue $9.24 billion
Net Income $762 million
Market Capitalization $13.5 billion

Brand Portfolio

  • KFC: 7,166 restaurants
  • Pizza Hut: 2,350 restaurants
  • Taco Bell: 313 restaurants
  • Other brands: 264 restaurants

Financial Performance

In 2023, Yum China reported $9.24 billion in total revenue, with a net income of $762 million.

Operating Metrics 2023 Data
Same-Store Sales Growth 8%
Digital Sales Percentage 85%
New Restaurant Openings 522

Strategic Initiatives

  • Expanded digital ordering platforms
  • Increased focus on delivery services
  • Continued restaurant network expansion

The company operates exclusively in mainland China, holding master franchising rights for KFC, Pizza Hut, and Taco Bell.



A Who Owns Yum China Holdings, Inc. (YUMC)

Major Shareholders

As of the latest available data, the ownership of Yum China Holdings, Inc. (YUMC) is structured as follows:

Shareholder Percentage of Ownership
Yum! Brands, Inc. 28.04%
Invesco Ltd. 5.57%
Vanguard Group Inc. 4.98%
BlackRock Inc. 4.21%

Institutional Ownership

Institutional investors hold approximately 80.3% of the total shares of Yum China Holdings, Inc. as of the most recent reporting period.

Significant Institutional Investors

  • Capital Research Global Investors: 3.9% ownership
  • Matthews International Capital Management, LLC: 3.2% ownership
  • Morgan Stanley Investment Management: 2.7% ownership

Insider Ownership

Insider ownership stands at 0.5% of total shares, which includes executives and board members.

Public Float

The public float for Yum China Holdings, Inc. is approximately 71.96% of total shares.

Stock Exchange Listing

Yum China Holdings, Inc. is listed on the New York Stock Exchange (NYSE) under the ticker symbol YUMC.



Yum China Holdings, Inc. (YUMC) Mission Statement

Company Overview

Yum China Holdings, Inc. (YUMC) operates as a restaurant company in China, with total revenue of $9.4 billion in 2022. The company manages multiple restaurant brands across the country.

Brand Portfolio

KFC Restaurants 5,870 locations
Pizza Hut Restaurants 2,228 locations
Taco Bell Restaurants 286 locations

Strategic Focus Areas

  • Expand digital ecosystem
  • Localize menu offerings
  • Enhance operational efficiency

Financial Performance

As of December 31, 2022:

  • Net income: $521 million
  • Operating profit margin: 10.5%
  • Total assets: $7.8 billion

Digital Transformation

Digital sales represented 83% of total system sales in 2022.



How Yum China Holdings, Inc. (YUMC) Works

Business Overview

Yum China Holdings, Inc. operates as a restaurant company in China. As of 2023, the company manages 9,567 restaurants across multiple brands.

Brand Portfolio

Brand Number of Restaurants Market Position
KFC 6,407 Market Leader
Pizza Hut 2,188 Major Player
Taco Bell 372 Growing Brand
Other Brands 600 Emerging Concepts

Financial Performance

2023 Financial Highlights:

  • Total Revenue: $9.47 billion
  • Net Income: $838 million
  • Operating Margin: 12.5%
  • Earnings Per Share: $2.41

Digital Capabilities

Digital Sales Metrics:

  • Digital Order Percentage: 35.6%
  • Mobile App Users: 410 million
  • Digital Platform Revenue: $3.36 billion

Geographic Distribution

Region Restaurants Revenue Contribution
Eastern China 3,412 38.2%
Southern China 2,789 31.5%
Northern China 2,166 24.3%
Western China 1,200 6%

Supply Chain

Supply Chain Metrics:

  • Number of Suppliers: 180
  • Local Sourcing Percentage: 92%
  • Annual Food Procurement: $3.1 billion

Workforce

Employee Statistics:

  • Total Employees: 450,000
  • Average Employee Tenure: 4.2 years
  • Annual Training Hours: 24 per employee


How Yum China Holdings, Inc. (YUMC) Makes Money

Business Segments

Yum China Holdings, Inc. generates revenue through four primary restaurant brands in China:

  • KFC: 5,712 restaurants as of December 31, 2022
  • Pizza Hut: 2,422 restaurants as of December 31, 2022
  • Taco Bell: 289 restaurants as of December 31, 2022
  • Little Sheep: 540 restaurants as of December 31, 2022

Financial Performance

Financial Metric 2022 Amount
Total Revenue $9.3 billion
Net Income $490 million
Operating Profit $725 million

Revenue Streams

Primary Revenue Sources:

  • Restaurant sales: $9.1 billion (98% of total revenue)
  • Delivery services: $180 million
  • Franchise royalties: $20 million

Digital Platforms

Digital ordering channels contribute significantly to revenue:

  • Digital sales: 35% of total system sales
  • Monthly active users on mobile apps: 410 million

Market Presence

Geographic Breakdown:

Region Number of Cities Percentage of Restaurants
Tier 1 Cities 61 22%
Tier 2 Cities 239 58%
Tier 3 and Lower Cities 420 20%

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