The Chinese restaurant sector continues to face headwinds from the real estate downturn and a lack of economic stimulus, which is weighing on consumer spending. In this environment, we recommend that investors focus on companies that possess the scale to be more aggressive on pricing, as value-oriented players typically perform better during economic downturns. A healthy balance sheet is also crucial.
New KFC units achieve pretax cash payback in roughly two years—about a 50% cash-on-cash return—outperforming most regional chains. This strengthens the firm’s ROI and helps attract high-quality franchisees.
Although the zero-covid-19 policy is over, restaurants still contend with cautious consumer spending.
|
Metric
|
YUMC
|
YUM
|
MCD
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.00 | 21.26 | 18.47 |
Price/Book Value | 2.64 | — | — |
Price/Sales | 1.18 | 4.37 | 5.97 |
Price/Cash Flow | 7.43 | 17.49 | 15.27 |
|
Metric
|
YUMC
|
YUM
|
MCD
|
|---|---|---|---|
Quick Ratio | 0.71 | 0.33 | 0.82 |
Current Ratio | 0.96 | 0.59 | 1.08 |
Interest Coverage | — | 5.27 | 7.84 |
|
Metric
|
YUMC
|
YUM
|
MCD
|
|---|---|---|---|
Return on Assets (Normalized) | 10.15% | 22.90% | 14.95% |
Return on Equity (Normalized) | 20.02% | — | — |
Return on Invested Capital (Normalized) | 12.41% | 46.91% | 19.07% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| McDonald's Corp
MCD
| LOCK|^J#><x& | LOCK|<%g | $164B | |||
| Starbucks Corp
SBUX
| LOCK|$cqDpZ%w | LOCK|vC$ | $108B | |||
| Compass Group PLC ADR
CMPGY
| LOCK|t$%c&c@G | LOCK|#??dr | $50B | |||
| Chipotle Mexican Grill Inc
CMG
| LOCK|<R@?v#&G | LOCK|NyV | $41B | |||
| Yum Brands Inc
YUM
| LOCK|$X>Zg^B | LOCK|!r | $37B | |||
| Restaurant Brands International Inc
QSR
| LOCK|hK>YbM | LOCK|%yy%% | $24B | |||
| Darden Restaurants Inc
DRI
| LOCK|>>$Sm&Y | LOCK|%H<M$ | $22B | |||
| Texas Roadhouse Inc
TXRH
| LOCK|vjRMN<Q | LOCK|Qgw% | $10B | |||
| Domino's Pizza Inc
DPZ
| LOCK|!QdZtl?> | LOCK|@jR | $10B |
United States