Sifting through countless of stocks in the Hotels, Restaurants & Leisure industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in McDonald's Corporation, Yum China Holdings or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how McDonald's Corporation, Yum China Holdings and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About McDonald's Corporation, Yum China Holdings and Inc.

McDonald's Corporation owns, operates, and franchises restaurants under the McDonald’s brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, frozen desserts, sundaes, soft serve cones, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates franchised restaurants under various structures, including conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.

Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People’s Republic of China. The company operates through two 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 delivery services. Yum China Holdings, Inc. was founded in 1987 and is headquartered in Shanghai, the People’s Republic of China.

Latest Hotels, Restaurants & Leisure and McDonald's Corporation, Yum China Holdings, Inc. Stock News

As of September 2, 2026, McDonald's Corporation had a $184.7 billion market capitalization, compared to the Hotels, Restaurants & Leisure median of $2.2 million. McDonald's Corporation’s stock is down 15.3% in 2026, down 0.4% in the previous five trading days and down 17.36% in the past year.

Currently, McDonald's Corporation’s price-earnings ratio is 21.2. McDonald's Corporation’s trailing 12-month revenue is $27.7 billion with a 31.7% net profit margin. Year-over-year quarterly sales growth most recently was 3.7%. Analysts expect adjusted earnings to reach $12.930 per share for the current fiscal year. McDonald's Corporation currently has a 2.9% dividend yield.

As of September 2, 2026, Yum China Holdings, Inc. had a $15.3 billion market cap, putting it in the 83rd percentile of all stocks. Yum China Holdings, Inc.’s stock is down 8.2% in 2026, down 2.4% in the previous five trading days and up 2.52% in the past year.

Currently, Yum China Holdings, Inc.’s price-earnings ratio is 16.5. Yum China Holdings, Inc.’s trailing 12-month revenue is $12.4 billion with a 7.8% net profit margin. Year-over-year quarterly sales growth most recently was 12.6%. Analysts expect adjusted earnings to reach $2.952 per share for the current fiscal year. Yum China Holdings, Inc. currently has a 2.6% dividend yield.

How We Compare McDonald's Corporation, Yum China Holdings and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at McDonald's Corporation, Yum China Holdings and Inc.’s stock grades to see how they measure up against one another.

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McDonald's Corporation, Yum China Holdings and Inc.’s Quality Grades

Company	Ticker	Quality
McDonald's Corporation	MCD	A
Yum China Holdings, Inc.	YUMC	A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

McDonald's Corporation has a Quality Score of 95, which is Very Strong. Yum China Holdings, Inc. has a Quality Score of 87, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both McDonald's Corporation, Yum China Holdings and Inc. have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

McDonald's Corporation, Yum China Holdings and Inc.’s Momentum Grades

Company	Ticker	Momentum
McDonald's Corporation	MCD	D
Yum China Holdings, Inc.	YUMC	C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

McDonald's Corporation has a Momentum Score of 28, which is Weak. Yum China Holdings, Inc. has a Momentum Score of 45, which is Average.

The Momentum Stock Winner: No Clear Winner

Neither McDonald's Corporation, Yum China Holdings or Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if McDonald's Corporation, Yum China Holdings or Inc. is the better investment when it comes to momentum.

McDonald's Corporation, Yum China Holdings and Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
McDonald's Corporation	MCD	C
Yum China Holdings, Inc.	YUMC	C

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

McDonald's Corporation has a Earnings Estimate Score of 52, which is Neutral. Yum China Holdings, Inc. has a Earnings Estimate Score of 54, which is Neutral.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither McDonald's Corporation, Yum China Holdings or Inc. has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if McDonald's Corporation, Yum China Holdings or Inc. is the better investment when it comes to estimate revisions.

Other McDonald's Corporation, Yum China Holdings and Inc. Grades

In addition to Quality, Momentum and Estimate Revisions, A+ Investor also provides grades for Value and Growth.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether McDonald's Corporation, Yum China Holdings and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, McDonald's Corporation, Yum China Holdings or Inc. Stock?

Overall, McDonald's Corporation stock has a Momentum Score of 28, Estimate Revisions Score of 52 and Quality Score of 95.

Yum China Holdings, Inc. stock has a Momentum Score of 45, Estimate Revisions Score of 54 and Quality Score of 87.

Comparing McDonald's Corporation, Yum China Holdings and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.