Yum China Holdings, Inc. (9987.HK) stock analysis

In our weekly check, Yum China Holdings, Inc. is graded A (A to F). Of 24 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 0.

About Yum China Holdings, Inc.

Yum China Holdings, Inc. is a Consumer Cyclical company (Restaurants) based in China, listed on HKSE as 9987.HK.

What our checks show for 9987.HK

Warning signs

• The net margin fell by 2.2 points over 5 years, to 7.8%: the company keeps less of each sale as profit.
• The net margin is only 7.8%: little room if costs rise.
• The stock has fallen as much as 57% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Net debt is only 0.9x a year of EBITDA: the balance sheet has room.
• The gross margin is 17.2% and has risen by 3.4 points: pricing power is holding.
• Operating cash flow is 1.64x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 12.7% a year over the next years.
• Earnings per share grew 37.7% a year over the last 3 years.
• Net profit grew 30.2% a year over the last 3 years.

Next earnings report: 2026-11-03

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Questions

What grade does Yum China Holdings, Inc. (9987.HK) have?

In our weekly check, Yum China Holdings, Inc. is graded A (A to F). Of 24 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 0. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 9987.HK stock?

This week's biggest flags for Yum China Holdings, Inc.: Margins falling, Thin margins, Deep past fall. In total 4 of 24 checks show a warning or a red flag.

What does Yum China Holdings, Inc. do?

Yum China Holdings, Inc. is a Consumer Cyclical company (Restaurants) based in China, listed on HKSE as 9987.HK.

When does Yum China Holdings, Inc. report earnings next?

The next earnings report is expected on 2026-11-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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