Business Description Of Yum China

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Business Description

Yum China Holdings is the largest independent restaurant in China. They are in the Restaurant, Bars, and Food Services industry. Yum China is a spin-off of its parent company, Yum Brands. The company was founded on April 1, 2016 and is headquartered in Louisville, Kentucky. Yum China became a publicly traded company on November 1, 2016. They have exclusive rights to operate and sub-license KFC, Pizza Hut, and Taco Bell with outright ownership of East Dawning and Little Sheep restaurants as well.
Yum China is the leading restaurant company with over 7,300 restaurants in 1,100 cities spanning across every province and mainland in China. They have become the leading restaurant company in only three decades of …show more content…

He has served as CEO of the YUM China since August 2015. Ted Stedem is the Chief Financial Officer for the company. He has served as Chief Financial Officer since August 2016. He has served in a number of leadership roles for YUM over the past seven years, including General Manager and Managing Director of KFC Asia.
Yum China has collected consumer preference and loyalty in the minds of their consumer. Their mission statement involves their dedication to serving their consumers needs by improving their in-store experience, refining mobile connectivity, pioneering innovative new products, and consistently delivering superb value.

Pertinent Financial Information

Yum China is doing well compared to its competitors and is very financially stable considering its early life. Yum China has seen negative same-store sales growth in the past year due changing customer preference but do plan to keep opening new stores. Their EBITDA is seeing positive growth at 11.83%. The same-store sales decline in growth shouldn’t be seen as substantial as their EBITDA looks to continue to grow. They are financially in good health with an outstanding current ratio of 1.42 and a total-asset turnover of 1.95 that both lead amongst competitors. The graphs below illustrate Yum China’s financial competency compared to its industry and competitors.

Macroeconomic Factors

China is the second leading global economy and represents the world’s largest economic growth in recent years.

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