Financial Survey: Granite City Food & Brewery (GCFB) & Yum China (YUMC)

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Yum China (NYSE:YUMC) and Granite City Food & Brewery (OTCMKTS:GCFB) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Volatility & Risk

Yum China has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Granite City Food & Brewery has a beta of -3.26, suggesting that its share price is 426% less volatile than the S&P 500.

Earnings & Valuation

This table compares Yum China and Granite City Food & Brewery’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yum China $8.42 billion 1.85 $708.00 million $1.53 26.89
Granite City Food & Brewery N/A N/A N/A N/A N/A

Yum China has higher revenue and earnings than Granite City Food & Brewery.

Profitability

This table compares Yum China and Granite City Food & Brewery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yum China 8.41% 19.62% 12.81%
Granite City Food & Brewery N/A N/A N/A

Dividends

Yum China pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Granite City Food & Brewery does not pay a dividend. Yum China pays out 31.4% of its earnings in the form of a dividend.

Institutional and Insider Ownership

77.2% of Yum China shares are held by institutional investors. 0.4% of Yum China shares are held by company insiders. Comparatively, 26.3% of Granite City Food & Brewery shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Yum China and Granite City Food & Brewery, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yum China 0 4 1 0 2.20
Granite City Food & Brewery 0 0 0 0 N/A

Yum China presently has a consensus price target of $38.67, indicating a potential downside of 6.01%. Given Yum China’s higher probable upside, equities analysts plainly believe Yum China is more favorable than Granite City Food & Brewery.

Summary

Yum China beats Granite City Food & Brewery on 9 of the 11 factors compared between the two stocks.

About Yum China

Yum China Holdings, Inc. owns, operates, and franchises restaurants in China. The company operates in two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Taco Bell, East Dawning, and Little Sheep brands, which specialize in chicken, pizza, hot pot cooking, Chinese food, and Mexican-style food categories. The company also provides online food delivery services. As of December 31, 2017, it operated approximately 5,400 KFC restaurants; 2,100 Pizza Hut restaurants; 280 Little Sheep units; 10 East Dawning restaurants; and 3 Taco Bell restaurants. Yum China Holdings, Inc. was incorporated in 2016 and is headquartered in Shanghai, the People's Republic of China.

About Granite City Food & Brewery

Granite City Food & Brewery, Ltd. operates casual dining restaurants in the United States. The company's upscale casual dining restaurants include the Granite City Food & Brewery restaurant that offers various menu items and handcrafted beers, as well as other regional craft beers; and the Cadillac Ranch All American Bar & Grill restaurant that offers American cuisine, including homemade meatloaf and pasta dishes. As of December 26, 2017, it operated 32 Granite City restaurants in 13 states; and 4 Cadillac Ranch restaurants in 4 states. The company was founded in 1997 and is headquartered in Bloomington, Minnesota. Granite City Food & Brewery, Ltd. is a subsidiary of Concept Development Partners LLC.

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