Yum China Holdings Inc. (YUMC) exhibits 41.0% gross margins and 14.9% return on invested capital within Consumer Discretionary (Restaurants), balanced against a 9.3x enterprise multiple and 7.4% implied options volatility.
Sustained 41.0% gross profitability converts into 10.9% operating margin and 14.9% ROIC, outpacing sector cost of capital.
ROIC: 14.9% // GM: 41.0%YoY revenue trajectory of +4.4% paired with 5.43% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +4.4% // FCF YLD: 5.43%Altman Z-Score of 3.71 and Piotroski F-Score of 9/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.71 // F-SCORE: 9/9Trading at 16.7x trailing P/E (15.5x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 16.7x // EV/EBITDA: 9.3xOptions market prices a ±7.4% implied move with a 0.69 put/call ratio around $44.00 max pain.
IMPL MOVE: ±7.4% // P/C: 0.69Elevated industry capital intensity and customer concentration in Restaurants require continuous execution to defend 7.9% net margins.
NET MARGIN: 7.9% // D/E: 0.37x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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