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Yum China Holdings YUMC Upfront Franchise Fees — Deferred Revenue

Other product segments

Prepaid Stored Value Products
$148M+24.4%
Privilege Membership Programs
$40M+17.6%
Customer Loyalty Programs
$17M+30.8%

Similar metrics at other companies

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BROSInitial unearned franchise fees — Contract with Customer, Liability
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HInitial fees received from franchise owners — Total contract liabilities
$49M+8.9%
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ROLFranchise — Contract With Customer Liability Current
$1.7M
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TXRHFranchise — Contract With Customer Liability Noncurrent
$1.9M0.0%
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BROSFranchising — Contract with Customer, Liability
$2.62M+8.7%
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BROSCustomer advances and sales to distributors and franchise fee — Contract with Customer, Liability
$2.54M+5.9%

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$14.87B-12.2%
Enterprise value$16.72B-9.9%
P/E15.7×-2.8×
P/S1.2×-0.3×

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 official record: Yum China Holdings’s 10-Q, filed May 8, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Yum China Holdings's upfront franchise fees — deferred revenue?
Yum China Holdings (YUMC) reported upfront franchise fees — deferred revenue of $56M in Q1 2026.
How has Yum China Holdings's upfront franchise fees — deferred revenue changed year-over-year?
Yum China Holdings's upfront franchise fees — deferred revenue increased by 30.2% year-over-year, from $43M to $56M.
What is the long-term trend for Yum China Holdings's upfront franchise fees — deferred revenue?
Over 4 years (2021 to 2025), Yum China Holdings's upfront franchise fees — deferred revenue has grown at a 4.7% compound annual growth rate (CAGR), from $155M to $186M.
What does upfront franchise fees — deferred revenue mean?
The amount of franchise fees collected in advance that the company has yet to earn as revenue.
How do you interpret upfront franchise fees — deferred revenue?
An increase suggests strong franchise expansion and future revenue recognition, while a decrease may indicate slowing franchise development or the amortization of existing contracts.
How does upfront franchise fees — deferred revenue compare across companies?
Comparable to deferred franchise revenue or contract liabilities found in other large-scale restaurant franchisors that collect initial fees upon signing or store opening.