YUMC

Yum China Holdings

HARAM — SCREEN DOES NOT PASSstock

Is YUMC Halal?

Fast food operator in China with pork products and alcohol sales.

What You Should Know

Yum China operates KFC, Pizza Hut, and Taco Bell in China. Restaurants serve pork extensively and some locations sell alcohol, making it impermissible. The March 31, 2026 filing shows 0.65% debt/assets, 13.19% liquidity/assets, 5.32% receivables-plus-cash/assets and 0.49% disclosed interest income/revenue; the activity screen remains a conservative fail because menu-level prohibited revenue is not separately disclosed.

⚠️ Concerns

  • Major revenue from pork products
  • Alcohol sales in some locations
  • Core menu includes haram ingredients
  • Activity proxy uses total reported revenue because menu-level allocation is unavailable

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
0.65%Within limit
Below 33.333% under FTSE Yasaar

70 / 10,837

Cash + interest-bearing securities / assets
13.19%Within limit
Below 33.333% under FTSE Yasaar

1,429 / 10,837

Receivables + cash / assets
5.32%Within limit
Below 50% under FTSE Yasaar

576 / 10,837

Non-compliant income / revenue
0.49%Within limit
No more than 5% under FTSE Yasaar

16 / 3,271

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Fails

Debt/assets is 0.65%, liquidity/assets is 13.19%, receivables-plus-cash/assets is 5.32% and disclosed interest income is 0.49%; examined financial ratios pass, but the conservative activity proxy fails.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Fails

Debt, liquidity and receivables-plus-cash are below the examined total-assets limits, but the conservative activity proxy fails. This is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Fails

Debt/assets and identifiable conventional liquidity/assets are below the examined Malaysia limits; the conservative activity proxy fails. This is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A licensed historical market-cap series is not stored; the conservative activity proxy fails.

Business-activity disclosure

Yum China operates KFC, Pizza Hut and Taco Bell restaurants in China. The retained qualitative analysis identifies extensive pork offerings and alcohol at some locations as core business concerns.

Limitation: The filing does not quantify pork, alcohol or other menu-level prohibited revenue; total reported revenue is used only as a conservative upper-bound proxy.

Purification

Disclosed net interest income is 0.49% of quarterly revenue, but no scholar-approved purification percentage is asserted; the activity screen fails on the conservative upper-bound proxy.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Yum China's March 31, 2026 Form 10-Q.
  • Debt includes $20 million short-term borrowings and $50 million non-current finance-lease liabilities; operating lease liabilities are excluded. Cash is $473 million and short-term investments are $956 million.
  • Accounts receivable is $103 million, quarterly total revenues are $3,271 million and disclosed net interest income is $16 million.
  • Because pork, alcohol and other menu-level prohibited revenue is not separately allocated, total revenue is used as a conservative upper-bound activity proxy; this is not a claim that every dollar is prohibited.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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