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Yum China Holdings YUMC Privilege Membership Programs — Deferred Revenue

Other product segments

Prepaid Stored Value Products
$148M+24.4%
Upfront Franchise Fees
$56M+30.2%
Customer Loyalty Programs
$17M+30.8%

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ZUMZSTASH Loyalty Program — Deferred Revenue
$900K-18.2%

Other financials

Income statement

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Revenue$3.3B+9.7%
Operating income$447.0M+12.0%
Net income$309.0M+5.8%
EPS (diluted)$0.87+13.0%

Balance sheet

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Cash & equivalents$473.0M-42.7%
Total debt$2.3B-2.3%
Total equity$5.4B-6.1%
Total assets$10.8B-1.5%

Cash flow

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Operating cash flow$550.0M+21.7%
CapEx$144.0M+5.1%
Free cash flow$406.0M+28.9%

Valuation

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Market cap$16.27B-1.5%
Enterprise value$18.11B-0.3%
P/E17.2×-0.8×
P/S1.4×-0.1×

Profitability

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Gross margin24.4%
Operating margin11.1%+0.6pp
Net margin7.8%-0.3pp
FCF margin8.3%+1.8pp

Returns & leverage

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Return on equity16.9%+1.1pp
Debt / equity0.4×0.0×
Current ratio-0.2×

Where this comes from

Reported directly by Yum China Holdings in its filing.

Tagged under the XBRL concept us-gaap:ContractWithCustomerLiability.

The source filing: Yum China Holdings’s 10-Q, filed May 8, 2026.

Filed
May 8, 2026, 6:01 AM EDT
Fiscal quarter
Q1 FY2026
Calendar quarter
Q1 2026
Accession
0001193125-26-213131
Contract liabilities3/31/202612/31/2025
– Deferred revenue related to prepaid stored-value products$$148132
– Deferred revenue related to upfront franchise fees5657
– Deferred revenue related to customer loyalty programs1718
– Deferred revenue related to privilege membership programs4044
Total$$261251

Item 1. Financial Statements

FAQ

What is Yum China Holdings's privilege membership programs — deferred revenue?
Yum China Holdings (YUMC) reported privilege membership programs — deferred revenue of $40M in Q1 2026.
How has Yum China Holdings's privilege membership programs — deferred revenue changed year-over-year?
Yum China Holdings's privilege membership programs — deferred revenue increased by 17.6% year-over-year, from $34M to $40M.
What is the long-term trend for Yum China Holdings's privilege membership programs — deferred revenue?
Over 4 years (2021 to 2025), Yum China Holdings's privilege membership programs — deferred revenue has grown at a 21.0% compound annual growth rate (CAGR), from $71M to $152M.
What does privilege membership programs — deferred revenue mean?
This metric represents the deferred revenue liability arising from customer prepayments for loyalty or subscription-based membership programs. It reflects the obligation to provide future goods or services to members who have paid in advance for exclusive benefits or discounts. This balance serves as a key indicator of customer engagement and the future revenue pipeline generated through recurring membership models.

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