Big Move for PZZA, but Do YUMC’s Margins and Growth Give It the Edge?
Yum China (YUMC) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Papa John’s International (PZZA), suggesting you may be better off investing in YUMC
- YUMC’s Last 12 Months revenue growth was 3.5%, vs. PZZA’s -1.5%.
- In addition, its Last 3-Year Average revenue growth came in at 5.9%, ahead of PZZA’s -0.3%.
- YUMC leads on profitability over both periods – LTM margin of 11.1% and 3-year average of 10.4%.
PZZA operates and franchises pizza delivery and carryout restaurants worldwide, with over 5,600 locations including 600 company-owned and 5,050 franchised, founded in 1984. YUMC operates and franchises over 11,700 restaurants across 1,600 Chinese cities, including KFC, Pizza Hut, Little Sheep, Huang Ji Huang, Lavazza, and Taco Bell brands.
Valuation & Performance Overview
| PZZA | YUMC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 13.4 | 13.1 | YUMC |
| Revenue Growth | |||
| Last Quarter | 4.2% | 4.0% | PZZA |
| Last 12 Months | -1.5% | 3.5% | YUMC |
| Last 3 Year Average | -0.3% | 5.9% | YUMC |
| Operating Margins | |||
| Last 12 Months | 5.7% | 11.1% | YUMC |
| Last 3 Year Average | 6.3% | 10.4% | YUMC |
| Momentum | |||
| Last 3 Year Return | -34.5% | -6.2% | YUMC |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: PZZA Revenue Comparison | YUMC Revenue Comparison
See more margin details: PZZA Operating Income Comparison | YUMC Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell YUMC Stock to see if Yum China’s edge holds up under the hood or if Papa John’s International still has cards to play (see Buy or Sell PZZA Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| PZZA Return | 36% | 59% | -37% | -5% | -44% | 22% | -16% | ||
| YUMC Return | 19% | -12% | 11% | -22% | 15% | -6% | 1% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 10% | 100% | <=== | |
| Monthly Win Rates [3] | |||||||||
| PZZA Win Rate | 67% | 50% | 25% | 42% | 25% | 43% | 42% | ||
| YUMC Win Rate | 67% | 25% | 58% | 42% | 42% | 71% | 51% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| PZZA Max Drawdown | -44% | -6% | -48% | -22% | -47% | -25% | -32% | ||
| YUMC Max Drawdown | -18% | -17% | -26% | -27% | -31% | -14% | -22% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 8/27/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read PZZA Dip Buyer Analyses to see how the stock has fallen and recovered in the past.