Is YUM's long-term earnings growth sustainable?

**YUM's long-term earnings growth appears to be sustainable** based on the following points: 1. **Consistent Dividend Yield**: The 5-year yield on cost of Yum China Holdings Inc stock is approximately 1.95%. This consistent dividend yield indicates a stable income stream, which is a sign of sustainable earnings growth. 2. **Share Buybacks**: Yum China Holdings Inc has returned nearly $1 billion to shareholders in the first half through share buybacks. Share buybacks can be a sign of confidence in the company's ability to generate earnings sustainably. 3. **Market Position and Expansion**: Yum China Holdings Inc operates in over 150 countries and has a strong presence in the quick service restaurant industry. Its diverse portfolio of iconic brands and continuous expansion efforts suggest a resilient business model. 4. **Financial Metrics**: The company's gross margin stands at 47.48%, and its operating margin is at 25.35%. These margins indicate efficient management of costs and a strong profitability profile, which are essential for sustaining earnings growth. 5. **Earnings History**: The company has achieved new financial milestones and navigated complex economic landscapes successfully. This track record suggests that Yum China Holdings Inc has the ability to adapt and grow sustainably in challenging market conditions. In conclusion, while past performance is not always indicative of future results, the combination of Yum China Holdings Inc's consistent dividend yield, share buybacks, strong market position, financial metrics, and successful navigation of economic challenges support the notion that its long-term earnings growth is sustainable.