Is Yum China Holdings, Inc. (YUMC) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 13.2% / 30% | 10.1% / 30% | 1.7% / 30% | 1.14% / 5% | ✓ HALAL |
| DJIM | 13.2% / 33% | 10.1% / 33% | 1.7% / 33% | 1.14% / 5% | ✓ HALAL |
| MSCI | 21.7% / 33% | 16.6% / 33% | 2.8% / 33% | 1.14% / 5% | ✓ HALAL |
| S&P | 13.2% / 33% | 10.1% / 33% | 1.7% / 33% | 1.14% / 5% | ✓ HALAL |
| FTSE | 21.7% / 33% | 16.6% / 33% | 2.8% / 50% | 1.14% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 20.6% | |
| Operating Margin | 7.2% | |
| Net Margin | 7.9% | |
| Return on Equity (ROE) | 16.0% | |
| Return on Assets (ROA) | 7.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.5B |
| Free Cash Flow | $840M |
| Total Debt | $2.3B |
| Debt-to-Equity | 38.5 |
| Current Ratio | 1.0 |
| Total Assets | $10.8B |
Price & Trading
| Last Close | $49.97 |
| 50-Day MA | $52.63 |
| 200-Day MA | $47.37 |
| Avg Volume | 1.6M |
| Beta | 0.1 |
|
52-Week Range
$41.00
| |
About Yum China Holdings, Inc. (YUMC)
Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People's Republic of China. The company operates KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also offers online food deliver services. Yum China Holdings, Inc. was founded in 1987 and is headquartered in Shanghai, the People's Republic of China.
Purification Calculator
As a halal stock with 1.14% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Yum China Holdings, Inc. (YUMC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Yum China Holdings, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Yum China Holdings, Inc.'s debt ratio?
Yum China Holdings, Inc.'s debt ratio is 13.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 21.7%.
Does Yum China Holdings, Inc. require dividend purification?
Yes, Yum China Holdings, Inc. has an impermissible income ratio of 1.14%, which means 1.14% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Yum China Holdings, Inc.'s key financial metrics?
Yum China Holdings, Inc. has a market capitalization of $17.4B, trailing P/E ratio of 19.8, and revenue of $11.8B. The company maintains a gross margin of 20.6% and a net margin of 7.9%. Return on equity stands at 16.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.