
Investors interested in Retail - Restaurants stocks are likely familiar with Yum China Holdings (YUMC) and Chipotle Mexican Grill (CMG). But which of these two companies is the best option for those looking for undervalued stocks?
Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.
| Revenue (TTM) | $12.44B |
| Gross Profit (TTM) | $2.53B |
| EBITDA | $1.88B |
| Operating Margin | 11.50% |
| Return on Equity | 16.80% |
| Return on Assets | 8.08% |
| Revenue/Share (TTM) | $34.84 |
| Book Value | $15.20 |
| Price-to-Book | 3.04 |
| Price-to-Sales (TTM) | 1.31 |
| EV/Revenue | 1.381 |
| EV/EBITDA | 9.14 |
| Quarterly Earnings Growth (YoY) | 21.40% |
| Quarterly Revenue Growth (YoY) | 12.60% |
| Shares Outstanding | $341.99M |
| Float | $340.93M |
| % Insiders | 0.42% |
| % Institutions | 74.63% |
Volatility is currently contracting

Investors interested in Retail - Restaurants stocks are likely familiar with Yum China Holdings (YUMC) and Chipotle Mexican Grill (CMG). But which of these two companies is the best option for those looking for undervalued stocks?

Restaurant stocks BJRI, CAKE, TXRH and YUMC stand out as industry sales rise, value dining gains traction and chains adapt to demand.

SHANGHAI, Aug. 7, 2026 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today announced that it has completed the acquisition of the ownership of the Pizza Hut brand in Mainland China from Yum! Brands, Inc. ("Yum!

LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) (“Yum!” or the “Company”) today announced the completion of the sale of Pizza Hut in Mainland China (“Pizza Hut China”) to Yum China Holdings, Inc. (NYSE: YUMC; HKEX: 9987) (“Yum China”), for $1.2 billion. The transaction with Yum China represents one of two previously announced definitive agreements to sell Pizza Hut for $2.7 billion in the aggregate, subject to certain purchase price adjustments relating to the sale of the Pizza.

YUM! Brands' $2.7 billion Pizza Hut exit could streamline its portfolio, cut debt and shift focus to faster-growing KFC and Taco Bell.

Yum China (YUMC) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Yum China Holdings, one of the largest restaurant companies in mainland China and the operator of big KFC and Pizza Hut chains in the country, climbed 3.2% to close a near three- and-a-half-month high at the Hong Kong Stock Exchange today after it posted an increase in second quarter earnings and expressed optimism about the rest of the year.

Yum China Holdings YUMC gave investors a clean read on its second-quarter 2026 growth engine. Revenues rose 13% year over year, adjusted earnings per share increased 21% and operating profit rose 14% to $348 million.

Yum China Holdings YUMC offers investors a mixed but potentially attractive setup after its second-quarter 2026 earnings beat, better profitability and continued store expansion. The question is whether earnings momentum and a lower valuation are enough to offset limited upside to the six-to-12-month $49 price target, delivery-cost pressure and risks tied to consumer demand in China.

The average of price targets set by Wall Street analysts indicates a potential upside of 26.2% in Yum China (YUMC). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
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