Yum China Holdings Inc (YUMC)

Yum China to Acquire Ownership of the Pizza Hut Brand in Mainland China

June 16 2026 - 8:15AM

SHANGHAI, June 16, 2026 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today announced that it has entered into a definitive agreement with Yum! Brands, Inc. ("Yum! Brands") (NYSE: YUM) to acquire ownership of the Pizza Hut brand in Mainland China at a cash consideration of $1.2 billion. Upon closing, Pizza Hut China will no longer be subject to the license fees previously payable to Yum! Brands.

Pizza Hut is the largest casual dining restaurant brand in China[1] and continues to capture significant growth opportunities in the market. In 2025, Pizza Hut reported segment revenue of $2.3 billion and segment operating profit of $183 million, and in the first quarter of 2026, it delivered its 13th consecutive quarter of same-store transaction growth and its eighth consecutive quarter of restaurant margin and operating profit expansion. With 4,375 restaurants across more than 1,100 cities[2], Yum China is targeting the expansion of Pizza Hut's footprint to over 6,000 stores by 2028 and the doubling of its operating profit by 2029 compared with that for 2024, as previously outlined at Yum China's Investor Day in November 2025.

"Moving from the exclusive licensee to the brand owner of Pizza Hut in Mainland China represents a transformative milestone for us, demonstrating our conviction and long-term commitment to the China market. We see tremendous opportunities ahead, and we are still only at the early stage of our planned growth trajectory for Pizza Hut China," said Joey Wat, CEO of Yum China. "Becoming the brand owner will give the Company greater strategic flexibility to drive innovation across the menu, store formats, new modules, and operations. In addition, the elimination of the license fee payments to Yum! Brands are expected to enhance store economics and lower store-opening thresholds, which support Pizza Hut's margin expansion, growth acceleration and market leadership in China. As always, we remain fully committed to delivering an exceptional experience for our customers."

As the Company embarks on the next chapter of Pizza Hut's growth in China, going forward, Yum China and Yum! Brands remain fully committed to a strong partnership to unlock growth in the KFC brand. KFC will continue to be the key growth engine for Yum China and has a long runway to further expand into underserved markets, strengthen its market leadership and deliver sustainable long-term growth. KFC China is well positioned to pursue its target of expanding from its current footprint of 13,4542 stores to over 17,000 stores by 2028. In addition, concurrent to the transaction, KFC China will be eligible to receive a decade-long financial incentive from Yum! Brands upon achieving certain system sales growth targets, supporting and rewarding the higher future growth of KFC China.

Yum China's Board of Directors approved the transaction after a thorough review with the management team. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions. On a like-for-like basis, Yum China's 2026 full year financial guidance remains unchanged. With the elimination of license fee payments to Yum! Brands for the Pizza Hut brand, the Company expects the transaction to immediately enhance Pizza Hut China's and therefore Yum China's restaurant margins and OP margins. It is also expected to be immediately accretive to diluted EPS starting in 2026 following closing, and mid-single-digit accretive to diluted EPS in 2027 and 2028.

Yum China plans to fund the acquisition through a combination of cash and debt financing. The Company's financing plan is designed to support the transaction while maintaining its long-term commitment to shareholder value creation. Yum China remains committed to its previously announced capital return plans, which includes $1.5 billion in 2026, and approximately 100% of annual free cash flow after subsidiaries' dividend payments to non-controlling interests beginning in 2027. This is expected to translate to an average annual return of approximately $900 million to over $1 billion in 2027 and 2028, and to exceed $1 billion in 2028.

Transaction Consideration

The transaction consideration represents an implied last-twelve-month (LTM) P/E multiple of 19.5x[3], which compares favorably with the trading multiples of comparable global and China-based catering and beverage companies that are brand owners with franchising as a key business model. This represents a 17% discount to the median of the peer group's[4] latest LTM P/E (23.5x)[5] as of market close on June 12, 2026, and a 24% discount to the median of the peer group's average LTM P/E over the past one year (25.7x)[6]. Additionally, it also stands at a discount to the intrinsic value range derived from various valuation methodologies, taking into account historical performance and future prospects of Pizza Hut in Mainland China, reinforcing long-term value creation for shareholders.

Management will provide additional information regarding the transaction during Yum China's second-quarter earnings conference call scheduled for July 30, 2026.

Lazard acted as financial advisor, Sidley Austin LLP acted as legal counsel, and Fangda Partners acted as PRC counsel to Yum China in the transaction.


Contacts

Investor Relations Contact:
Tel: +86 21 2407 7556
IR@YumChina.com

Media Contact:
Tel: +86 21 2407 3824
Media@YumChina.com

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KFC's KPRO Tops 300 Locations in ChinaMay 22, 2026 3:00 AM
PR Newswire (US) SHANGHAI, May 22, 2026 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) announced that KFC's light-meal concept, KPRO, has surpassed 300 locations in China and is on track to reach 600 locations by year–end, up from just over 200 in 2025. In addition to its signature multigrain energy bowls and superfood yogurt smoothies, KPRO is introducing two new high-protein product categories: Energy PRO sandwiches and high-protein yogurt smoothies. The whole-wheat chia-seed sandwiches feature roasted chicken breast or tuna and egg, along with five types of fresh vegetables, offering balanced nutrition. The high-protein yogurt smoothies, set to launch in July, come in a range of new flavors.KPRO targets the fast-growing demand for light meals at affordable price. With its Chinese name conveying the idea of self-discipline, KPRO offers delicious, hearty meals tailored to Chinese consumer preferences using a variety of ingredients for balanced nutrition while limiting the use of sugar and salt. The menu also features calorie labels to help consumers make more informed choices.Opened as a side–by–side module within KFC stores, KPRO leverages KFC's in–store resources and requires lower investment and operating costs than a standalone format. This business model effectively cross–sells KFC members and customers, driving incremental sales and profit for the parent KFC stores.Supported by Yum China's world–class supply chain management system and rigorous quality controls, KPRO upholds high food safety standards that differentiate it from the competition. These include using eggs safe for raw consumption, thoroughly cleaning produce, strictly separating raw and cooked foods, and closely monitoring ingredient conditions to ensure freshness. Combined with its innovative menu offerings and strong value for money, KPRO has generated strong consumer interest.In April, Yum China raised its 2026 expansion target for KPRO from 400 locations to 600, focusing on tier–1, tier–2 and select tier–3 cities, particularly in eastern and southern China where the demand for light meals is stronger.KPRO is just one of Yum China's many growth initiatives. The Company remains committed to driving innovation and operational efficiency to broaden its addressable market and meet the diverse needs of consumers.Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to our projected capital returns from 2025 and 2026. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook," "commit" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the Company's future strategies, growth, business plans, capital allocation strategy, capital return plans (including dividend and share repurchase plans). Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements. Our plan of capital returns to shareholders (including dividend and share repurchase plans) is based on current expectations, which may change based on market conditions, capital needs or otherwise. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factor" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results.About Yum China Holdings, Inc.Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 18,000 restaurants under six brands across over 2,600 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain, which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit https://ir.yumchina.com/.ContactsInvestor Relations Contact: 
Tel: +86 21 2407 7556
IR@YumChina.comMedia Contact:
Tel: +86 21 2407 3824
Media@YumChina.com View original content to download multimedia:https://www.prnewswire.com/news-releases/kfcs-kpro-tops-300-locations-in-china-302779908.htmlSOURCE Yum China Holdings, Inc. Original: KFC's KPRO Tops 300 Locations in China

Yum China Included in Dow Jones Best-in-Class World Index (formerly DJSI World) for the Sixth Consecutive Year, Retaining Global Industry No. 1May 13, 2026 5:00 AM
PR Newswire (US) SHANGHAI, May 13, 2026 /PRNewswire/ -- Yum China Holdings, Inc. (NYSE: YUMC and HKEX: 9987, "Yum China" or the "Company") today announced that the Company has continued to be included in the Dow Jones Best-in-Class World Index (DJBIC World, formerly DJSI World) and the Dow Jones Best-in-Class Emerging Markets Index (DJBIC Emerging Markets, formerly DJSI Emerging Markets) for the sixth consecutive year. Notably, Yum China is the only consumer services company from mainland China to be included in the DJBIC World Index. This achievement underscores the Company's long-standing commitment and leading practices in environmental, social, and governance (ESG).The Company's inclusion in the DJBIC indices is driven by its strong performance in the S&P Global Corporate Sustainability Assessment (CSA). Yum China achieved a record-high score of 81 in the 2025 S&P Global CSA, ranking first globally in the Restaurants & Leisure Facilities industry for the sixth consecutive year, and was also named to the S&P Global Sustainability Yearbook. Of the 25 CSA evaluation criteria, Yum China ranked in the top 1% in 13 criteria, and achieved the highest score in the industry in 8 criteria, including Sustainable Raw Materials, Labor Practices, Customer Relations, and Privacy Protection, among others.Furthermore, Yum China's outstanding sustainability performance continues to be recognized by other leading ESG agencies. In March 2026, the Company maintained its AA MSCI ESG Rating for the fifth consecutive year, highlighting its continued leadership within the restaurant industry.Together, these recognitions reflect Yum China's long-term commitment and continued dedication to sustainability. As Yum China looks ahead, its focus is clear: to grow with purpose, lead with responsibility and create long-term value across its ecosystem. Whether it is safeguarding food safety, empowering its employees, or driving decarbonization across the value chain, the Company strives to strengthen the connection between sustainable development and business performance. This alignment has been and will continue to be a core competitive advantage for Yum China. The Company is confident in its ability to deliver meaningful and lasting impact for its stakeholders and for society.To learn more about Yum China's ESG efforts,please visit: https://www.yumchina.com/sustainability/en/home/IndexForward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook," "commit" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results.About Yum China Holdings, Inc.Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 18,000 restaurants under six brands across over 2,600 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit http://ir.yumchina.com.ContactsInvestor Relations Contact:
Tel: +86 21 2407 7556
IR@YumChina.comMedia Contact:
Tel: +86 21 2407 3824
Media@YumChina.com  View original content:https://www.prnewswire.com/news-releases/yum-china-included-in-dow-jones-best-in-class-world-index-formerly-djsi-world-for-the-sixth-consecutive-year-retaining-global-industry-no-1-302770278.htmlSOURCE Yum China Holdings, Inc. Original: Yum China Included in Dow Jones Best-in-Class World Index (formerly DJSI World) for the Sixth Consecutive Year, Retaining Global Industry No. 1

Yum China Announces US$512 Million Share Repurchase Agreements for Second Half of 2026 as Part of US$1.5 Billion Full-Year Capital Return PlanMay 12, 2026 6:38 AM
PR Newswire (US) SHANGHAI, May 12, 2026 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) announced that it has entered into share repurchase agreements in the U.S. and Hong Kong for an aggregate repurchase amount of approximately US$512 million for the second half of 2026, commencing on July 1, 2026.The share repurchase agreements include approximately US$384 million under the Rule 10b5-1 of the United States Securities Exchange Act of 1934 in the U.S. and approximately HK$1 billion for a similar program in Hong Kong. These agreements are in addition to the share repurchase agreements for the first half of 2026. We remain on track to return US$1.5 billion to shareholders in 2026, including approximately US$400 million in dividends and US$1.1 billion in share repurchases, through a mix of systematic and discretionary buybacks."Our target to return US$1.5 billion in capital to shareholders in 2026 represents approximately 9% of our current market capitalization[1]. Supported by our healthy balance sheet and strong cash generation, we remain dual-focused on driving business growth and delivering solid capital returns to shareholders," said Joey Wat, CEO of Yum China.Beginning in 2027, Yum China intends to return approximately 100% of annual free cash flow after subsidiaries' dividend payments to non-controlling interests. This is anticipated to translate into an average annual return of approximately US$900 million to over US$1 billion in 2027 and 2028, and to exceed US$1 billion in 2028.Since 2017, Yum China has returned US$6.4 billion to shareholders through dividends and share repurchases.1. Market capitalization as of May 11, 2026Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to our projected capital returns from 2025 and 2026. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook," "commit" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the Company's future strategies, growth, business plans, capital allocation strategy, capital return plans (including dividend and share repurchase plans). Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements. Our plan of capital returns to shareholders (including dividend and share repurchase plans) is based on current expectations, which may change based on market conditions, capital needs or otherwise. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factor" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results.About Yum China Holdings, Inc.Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 18,000 restaurants under six brands across over 2,600 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain, which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit https://ir.yumchina.com/.ContactsInvestor Relations Contact:
Tel: +86 21 2407 7556
IR@YumChina.com Media Contact:
Tel: +86 21 2407 3824
Media@YumChina.com View original content:https://www.prnewswire.com/news-releases/yum-china-announces-us512-million-share-repurchase-agreements-for-second-half-of-2026-as-part-of-us1-5-billion-full-year-capital-return-plan-302769443.htmlSOURCE Yum China Holdings, Inc. Original: Yum China Announces US$512 Million Share Repurchase Agreements for Second Half of 2026 as Part of US$1.5 Billion Full-Year Capital Return Plan

Truckin' (New York, NY 10/30/80) (Official Live Video)

Yum China Shares Rise 2% After Earnings Beat and Strong Store ExpansionApril 29, 2026 6:54 AM
IH Market News
Yum China Holdings Inc. (NYSE:YUMC) reported first-quarter results on Wednesday that came in ahead of expectations, with both earnings and revenue topping analyst forecasts.Adjusted earnings per share reached $0.87, slightly above the $0.86 consensus estimate, while revenue totaled $3.27 billion, beating projections of $3.21 billion. Shares gained 2.03% in premarket trading following the announcement.Revenue increased 10% year over year, or 4% excluding currency effects, compared with $2.98 billion in the same period last year.The company opened a record 636 net new stores during the quarter—more than double the number added a year earlier—bringing its total footprint to 18,737 locations as of March 31, 2026.Operating profit rose 12% year over year to $447 million, while operating margin improved by 30 basis points to 13.7%, marking the eighth consecutive quarter of margin expansion.“We delivered solid results in a dynamic environment, and remain encouraged by early signs of improving consumer sentiment,” said Joey Wat. She added that the later timing of the Chinese New Year and an extended spring holiday in April affected same-store sales growth in the quarter, although combined March and April performance aligned with expectations.Same-store sales were flat compared with the prior year, reaching 100% of previous levels, while same-store transactions increased 2% year over year—extending a streak of growth to 13 consecutive quarters.Delivery sales jumped 31% year over year and accounted for roughly 54% of total revenue, up from 42% in the same quarter last year.KFC system sales rose 5% year over year, with same-store sales increasing 1%, marking the fourth straight quarter of growth. The brand added 457 net new locations, a 55% increase from the prior year.Pizza Hut system sales grew 4% year over year, while operating profit surged 18% to $71 million.For 2026, Yum China is targeting more than 20,000 total stores, implying over 1,900 net new openings, with planned capital expenditures of $600 million to $700 million. The company also remains on track to return $1.5 billion to shareholders during the year.Yum China Holdings stock price

Original: Yum China Shares Rise 2% After Earnings Beat and Strong Store Expansion

Yum China Reports First Quarter 2026 ResultsApril 29, 2026 5:00 AM
PR Newswire (US)

Delivered 10% Revenue Growth and 12% Operating Profit Growth with Record Quarterly Net New Store Openings
OP Margin Expanded Year Over Year for the Eighth Consecutive Quarter
Diluted EPS Up 13%, or 11% Excluding Mark-to-Market and F/X Impact
On Track to Return $1.5 Billion to Shareholders in 2026, Around 9% of Current Market CapitalizationSHANGHAI, April 29, 2026 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the first quarter ended March 31, 2026.First Quarter HighlightsTotal system sales grew 4% year over year ("YoY"), excluding foreign currency translation ("F/X").Same-store sales reached 100% of the prior year's level. Same-store transactions grew 2% YoY, the 13th consecutive quarter of growth.Total revenues increased 10% YoY to $3.3 billion, or a 4% increase excluding F/X.Opened 636 net new stores, an all-time quarterly high and more than double the openings in the same quarter last year, with 39% opened by franchisees. Total store count reached 18,737 as of March 31, 2026.Operating profit grew 12% YoY to $447 million, a first-quarter record high. Core operating profit grew 6% YoY.OP margin was 13.7%, an increase of 30 basis points YoY, the 8th consecutive quarter of OP margin expansion.Restaurant margin was 18.2%, a decrease of 40 basis points YoY, primarily due to increased rider cost from a higher delivery mix, partially offset by streamlined operations.Diluted EPS increased 13% YoY to $0.87, or up 7% excluding F/X, and up 11% further excluding the impact1 of the mark-to-market equity investments.Returned $316 million to shareholders through $214 million in share repurchases and $102 million in cash dividends.Delivery sales grew 31% YoY. Delivery contributed approximately 54% of total Company sales, up from 42% in the same quarter last year.Active Members of KFC or Pizza Hut, defined as those who transacted in the past 12 months, exceeded 270 million, representing a 9% YoY increase.CEO CommentsJoey Wat, CEO of Yum China, commented, "We delivered solid results in a dynamic environment, and remain encouraged by early signs of improving consumer sentiment. The late timing of Chinese New Year and the extra April spring break affected gathering patterns and same-store sales growth in Q1. However, combined March and April trading has so far been in line with our expectations. In Q1, we accelerated store openings to a record level to capture significant market opportunities. At the same time, we drove system sales growth, operating profit growth and OP margin expansion for the eighth consecutive quarter, thanks to our teams' dedication."Wat continued, "Importantly, same–store transactions increased for the 13th consecutive quarter for both Yum China and Pizza Hut. KFC achieved positive same–store sales growth for the fourth consecutive quarter and continued to capture new occasions through the rapid rollout of KCOFFEE cafe and KPRO side-by-side modules, and car-side pickup services. Pizza Hut delivered 18% operating profit growth on top of last year's 27% increase and further improved its restaurant and OP margins, while entering more than 100 new cities in Q1, with WOW as the key driver."Wat concluded, "Looking ahead, we will fuel further growth through front-end segmentation and back-end consolidation. With our strong foundation, dual focus on innovation and operational efficiency, and a more rational delivery platform competition, we are confident in delivering our full-year targets and creating sustainable long–term value for our shareholders."1 Refers to a 4 cents favorable F/X impact, an unfavorable impact from a mark-to-market loss of 3 cents in the first quarter of 2026 and a mark-to-market gain of 0.4 cent in the first quarter of 2025.Key Financial Results
First Quarter





%/ppts Change

2026
2025
Reported
Ex F/X
System Sales Growth (2) (%)4
2
NM
NM
Same-Store Sales Growth (2) (%)Even
Even
NM
NM
Operating Profit ($mn)447
399
+12
+6
Adjusted Operating Profit (3) ($mn)447
399
+12
+6
Core Operating Profit (3) (4) ($mn)423
399
NM
+6
OP Margin (5) (%)13.7
13.4
+0.3
+0.2
Core OP Margin (3) (6) (%)13.6
13.4
NM
+0.2
Net Income ($mn)309
292
+6
Even
Adjusted Net Income (3) ($mn)309
292
+6
Even
Diluted Earnings Per Common Share ($)0.87
0.77
+13
+7
Adjusted Diluted Earnings Per Common Share (3) ($)0.87
0.77
+13
+7
2 System sales and same-store sales percentages exclude the impact of F/X. Effective January 1, 2018, temporary store closures are normalized in the same-store sales calculation by excluding the period during which stores are temporarily closed.3 See "Reconciliation of Reported GAAP Results to Non-GAAP Measures" included in the accompanying tables of this release for further details.4 Core operating profit is defined as operating profit adjusted for special items, further excluding items affecting comparability and the impact of F/X. The Company uses core operating profit for the purposes of evaluating the performance of its core operations. Current period amounts are derived by translating results at average exchange rates of the prior year period.5 OP margin refers to operating profit as a percentage of total revenues.6 Core OP margin refers to core operating profit as a percentage of total revenues excluding F/X.Note: All comparisons are versus the same period a year ago.Percentages may not recompute due to rounding.NM refers to not meaningful.Capital Returns to ShareholdersThe Company is on track to return $1.5 billion each year from 2024 to 2026, which is annually around 9% of our market capitalization as of April 28, 2026.In the first quarter of 2026, the Company returned $316 million in capital to shareholders through $214 million in share repurchases and $102 million in cash dividends. The Company repurchased 4.1 million shares of common stock during the quarter.The Board declared a cash dividend of $0.29 per share on Yum China's common stock, payable on June 17, 2026 to shareholders of record as of the close of business on May 27, 2026.Starting in 2027, the Company plans to return approximately 100% of annual free cash flow after subsidiaries' dividend payments to non-controlling interests. This is anticipated to translate into an average annual return of approximately $900 million to over $1 billion in 2027 and 2028, and to exceed $1 billion in 2028.KFC
First Quarter




%/ppts Change
2026
2025
Reported
Ex F/XRestaurants13,454
11,943
+13
NMSystem Sales Growth (%)5
3
NM
NMSame-Store Sales Growth (%)1
Even
NM
NMTotal Revenues ($mn)2,453
2,246
+9
+4Operating Profit ($mn)417
386
+8
+3Core Operating Profit ($mn)396
386
NM
+3OP Margin (%)17.0
17.2
(0.2)
(0.2)Restaurant Margin (%)19.1
19.8
(0.7)
(0.7)System sales for KFC grew 5% YoY. Same-store sales increased 1% YoY, the fourth consecutive quarter of growth. Same-store transactions also grew 1% YoY. Ticket average was 1% lower YoY, driven mainly by the rapid growth of smaller orders, partially offset by increased delivery mix, which carries a relatively higher ticket average.Delivery sales grew 33% YoY, contributing approximately 55% of KFC's Company sales, up from 43% in the same quarter last year.KFC opened 457 net new stores during the quarter, 55% higher than the openings in the same quarter last year, with 172 net new stores opened by franchisees, accounting for 38%. Total store count reached 13,454 as of March 31, 2026.Operating profit increased 8% YoY to $417 million. Core operating profit increased 3% YoY.OP margin was 17.0%, a decrease of 20 basis points YoY.Restaurant margin was 19.1%, a decrease of 70 basis points YoY, primarily due to the impact of increased rider cost resulting from higher delivery mix and value-for-money offerings, partially offset by streamlined operations and favorable commodity prices.Pizza Hut
First Quarter




%/ppts Change
2026
2025
Reported
Ex F/XRestaurants4,375
3,769
+16
NMSystem Sales Growth (%)4
2
NM
NMSame-Store Sales Growth (%)(1)
Even
NM
NMTotal Revenues ($mn)635
595
+7
+2Operating Profit ($mn)71
60
+18
+12Core Operating Profit ($mn)67
60
NM
+12OP Margin (%)11.2
10.1
+1.1
+1.0Restaurant Margin (%)15.0
14.4
+0.6
+0.6System sales for Pizza Hut grew 4% YoY. Same-store sales reached 99% of the prior year's level. Same-store transactions grew 5% YoY, the 13th consecutive quarter of growth. Ticket average was 5% lower YoY, consistent with our mass-market strategy and driven mainly by better value-for-money offerings.Delivery sales grew 25% YoY, contributing approximately 51% of Pizza Hut's Company sales, up from 42% in the same quarter last year.Pizza Hut opened 207 net new stores during the quarter, close to half of its full–year 2025 openings, with 105 net new stores opened by franchisees, accounting for 51%. Total store count reached 4,375 as of March 31, 2026.Operating profit grew 18% YoY to $71 million. Core operating profit increased 12% YoY.OP margin was 11.2%, an increase of 110 basis points YoY, the eighth consecutive quarter of OP margin expansion.Restaurant margin was 15.0%, expanding 60 basis points YoY despite a lower ticker average, primarily due to streamlined operations and automation and favorable commodity prices, partially offset by the impact of value-for-money offerings and increased cost associated with higher delivery sales mix.2026 OutlookThe Company targets:Total stores of over 20,000, or more than 1,900 net new stores.40-50% franchise mix of net new stores for both KFC and Pizza Hut.Capital expenditures of approximately $600 million to $700 million.$1.5 billion capital return to shareholders.Note on Non-GAAP MeasuresReported GAAP results include items that are excluded from non-GAAP measures. See "Reconciliation of Reported GAAP Results to Non-GAAP Measures" and "Segment Results" within this release for non-GAAP reconciliation details.Conference CallYum China's management will hold an earnings conference call at 7:00 a.m. U.S. Eastern Time on Wednesday, April 29, 2026 (7:00 p.m. Beijing/Hong Kong Time on Wednesday, April 29, 2026).A live webcast of the call may be accessed at https://edge.media-server.com/mmc/p/hkitwxns.To join by phone, please register in advance through the link provided below. Upon registering, you will be provided with participant dial-in numbers and a unique access PIN.Pre-registration Link: https://register-conf.media-server.com/register/BI1a0396f7d4794eedbe6ef6771b06b43aA replay of the webcast will be available two hours after the event and will remain accessible until April 28, 2027. Earnings release accompanying slides will be available at the Company's Investor Relations website http://ir.yumchina.com. For important news and information regarding Yum China, including our filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange, visit Yum China's Investor Relations website at http://ir.yumchina.com. Yum China uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements under the section titled "2026 Outlook." We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook," "commit" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the future strategies, growth, business plans, investments, store openings, net new stores, franchise mix of net new stores, capital expenditures, capital returns, dividend and share repurchase plans, CAGR for system sales, operating profit and EPS, earnings, performance and returns, anticipated effects of population and macroeconomic trends, execution of the Company's RGM 3.0 strategy, the anticipated effects of our innovation, digital and delivery capabilities and investments on growth and beliefs regarding the long-term drivers of Yum China's business. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: whether we are able to achieve development goals at the times and in the amounts currently anticipated, if at all, the success of our marketing campaigns and product innovation, our ability to maintain food safety and quality control systems, changes in public health conditions, our ability to control costs and expenses, including tax costs, as well as changes in political, economic and regulatory conditions in China and the U.S., and those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Our plan of capital returns to shareholders is based on current expectations, which may change based on market conditions, capital needs or otherwise. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results.About Yum China Holdings, Inc.Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 18,000 restaurants under six brands across over 2,600 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain, which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit http://ir.yumchina.com. ContactsInvestor Relations Contact:

Tel: +86 21 2407 7556 IR@YumChina.com   


Media Contact:

Tel: +86 21 2407 3824Media@YumChina.com   Yum China Holdings, Inc.Condensed Consolidated Statements of Income(in US$ million, except per share data)(unaudited)










Quarter Ended
% Change


3/31/2026
3/31/2025
B/(W)
Revenues







Company sales
$      3,047
$      2,801
9

Franchise fees and income
30
27
12

Revenues from transactions with franchisees
156
121
28

Other revenues
38
32
18

Total revenues
3,271
2,981
10

Costs and Expenses, Net







Company restaurants







Food and paper
963
874
(10)

Payroll and employee benefits
813
719
(13)

Occupancy and other operating expenses
718
688
(4)

Company restaurant expenses
2,494
2,281
(9)

General and administrative expenses
137
138
—

Franchise expenses
12
11
(13)

Expenses for transactions with franchisees
150
117
(28)

Other operating costs and expenses
31
29
(10)

Closures and impairment expenses, net
—
6
 NM 

Total costs and expenses, net
2,824
2,582
(9)

Operating Profit
447
399
12

Interest income, net
16
26
(44)

Investment (loss) gain
(11)
3
 NM 

Income Before Income Taxes and
  Equity in Net Earnings (Losses) from
  Equity Method Investments
452
428
5

Income tax provision
(123)
(119)
(3)

Equity in net earnings (losses) from
   equity method investments
2
4
(34)

Net income – including noncontrolling interests
331
313
6

Net income – noncontrolling interests
22
21
(4)

Net Income – Yum China Holdings, Inc.
$         309
$         292
6

Effective tax rate
27.2 %
27.8 %
0.6 ppts. 









Basic Earnings Per Common Share
$        0.88
$        0.78



Weighted-average shares outstanding
    (in millions)
353
376












Diluted Earnings Per Common Share
$        0.87
$        0.77



Weighted-average shares outstanding
    (in millions)
354
378






























OP margin
13.7 %
13.4 %
0.3ppts.









Company sales
100.0 %
100.0 %



Food and paper
31.6
31.2
(0.4) ppts. 
Payroll and employee benefits
26.7
25.7
(1.0) ppts. 
Occupancy and other operating expenses
23.5
24.5
1.0 ppts. 
Restaurant margin
18.2 %
18.6 %
(0.4) ppts. 


















Percentages may not recompute due to rounding. NM refers to not meaningful.  Yum China Holdings, Inc.KFC Operating Results(in US$ million)(unaudited)










Quarter Ended
% Change


3/31/2026
3/31/2025
B/(W)
Revenues







Company sales
$      2,410
$      2,208
9

Franchise fees and income
23
21
17

Revenues from transactions with franchisees
19
16
15

Other revenues
1
1
(2)

Total revenues
2,453
2,246
9

Costs and Expenses, Net







Company restaurants







Food and paper
746
685
(9)

Payroll and employee benefits
643
554
(16)

Occupancy and other operating expenses
560
532
(5)

Company restaurant expenses
1,949
1,771
(10)

General and administrative expenses
61
59
(4)

Franchise expenses
11
10
(14)

Expenses for transactions with franchisees
15
14
(5)

Other operating costs and expenses
—
1
61

Closures and impairment expenses, net
—
5
 NM 

Total costs and expenses, net
2,036
1,860
(9)

Operating Profit
$         417
$         386
8

OP margin
17.0 %
17.2 %
(0.2)ppts.









Company sales
100.0 %
100.0 %



Food and paper
31.0
31.1
0.1ppts.
Payroll and employee benefits
26.7
25.1
(1.6)ppts.
Occupancy and other operating expenses
23.2
24.0
0.8ppts.
Restaurant margin
19.1 %
19.8 %
(0.7)ppts.


















Percentages may not recompute due to rounding. NM refers to not meaningful.  Yum China Holdings, Inc.Pizza Hut Operating Results(in US$ million)(unaudited)










Quarter Ended
% Change


3/31/2026
3/31/2025
B/(W)
Revenues







Company sales
$         627
$         584
7

Franchise fees and income
3
2
36

Revenues from transactions with franchisees
2
2
36

Other revenues
3
7
(62)

Total revenues
635
595
7

Costs and Expenses, Net







Company restaurants







Food and paper
213
186
(15)

Payroll and employee benefits
168
163
(3)

Occupancy and other operating expenses
152
151
(1)

Company restaurant expenses
533
500
(7)

General and administrative expenses
26
26
—

Franchise expenses
1
1
(31)

Expenses for transactions with franchisees
2
2
(15)

Other operating costs and expenses
2
6
64

Total costs and expenses, net
564
535
(5)

Operating Profit
$           71
$           60
18

OP margin
11.2 %
10.1 %
1.1ppts.









Company sales
100.0 %
100.0 %



Food and paper
33.9
31.8
(2.1)ppts.
Payroll and employee benefits
26.7
27.9
1.2ppts.
Occupancy and other operating expenses
24.4
25.9
1.5ppts.
Restaurant margin
15.0 %
14.4 %
0.6ppts.


















Percentages may not recompute due to rounding.   Yum China Holdings, Inc.Condensed Consolidated Balance Sheets(in US$ million)






3/31/2026
12/31/2025

(Unaudited)

ASSETS



Current Assets



Cash and cash equivalents
$           473
$            506Short-term investments
956
878Accounts receivable, net
103
95Inventories, net
414
438Prepaid expenses and other current assets
373
440Total Current Assets
2,319
2,357Property, plant and equipment, net
2,570
2,543Operating lease right-of-use assets
2,175
2,189Goodwill
1,990
1,963Intangible assets, net
149
148Long-term bank deposits and notes
707
678Equity investments
398
387Deferred income tax assets
160
156Other assets
369
362Total Assets
10,837
10,783




LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY



Current Liabilities



Accounts payable and other current liabilities
2,126
2,127Short-term borrowings
20
30Income taxes payable
158
89Total Current Liabilities
2,304
2,246Non-current operating lease liabilities
1,802
1,823Non-current finance lease liabilities
50
51Deferred income tax liabilities
412
406Other liabilities
162
158Total Liabilities
4,730
4,684




Redeemable Noncontrolling Interest
—
—




Equity



Common stock, $0.01 par value; 1,000 million shares authorized; 351 million shares
      and 355 million shares issued at March 31, 2026 and December 31, 2025, respectively;
      351 million shares and 354 million shares outstanding at March 31, 2026 and December 31,
      2025, respectively.
4
4Treasury stock
(13)
(28)Additional paid-in capital
3,752
3,796Retained earnings
1,788
1,764Accumulated other comprehensive loss
(98)
(157)Total Yum China Holdings, Inc. Stockholders' Equity
5,433
5,379Noncontrolling interests
674
720Total Equity
6,107
6,099Total Liabilities, Redeemable Noncontrolling Interest and Equity
$      10,837
$       10,783  Yum China Holdings, Inc.Condensed Consolidated Statements of Cash Flows(in US$ million)(unaudited)









Quarter Ended


3/31/2026

3/31/2025Cash Flows – Operating Activities





Net income – including noncontrolling interests

$                   331

$                   313Depreciation and amortization

117

109Non-cash operating lease cost

106

99Closures and impairment expenses

—

6Investment loss (gain)

11

(3)Equity in net (earnings) losses from equity method investments

(2)

(4)Distributions of income received from equity method investments

3

4Deferred income taxes

(3)

2Share-based compensation expense

10

9Changes in accounts receivable

(7)

(2)Changes in inventories

30

78Changes in prepaid expenses, other current assets and value-added tax assets

68

25Changes in accounts payable and other current liabilities

(68)

(179)Changes in income taxes payable

68

61Changes in non-current operating lease liabilities

(102)

(101)Other, net

(12)

35Net Cash Provided by Operating Activities

550

452






Cash Flows – Investing Activities





Capital spending

(144)

(137)Purchases of short-term investments, long-term bank deposits and notes

(1,867)

(1,838)Maturities of short-term investments, long-term bank deposits and notes

1,777

1,916Acquisition of equity investment

—

(14)Other, net

1

1Net Cash Used in Investing Activities

(233)

(72)






Cash Flows – Financing Activities





Proceeds from short-term borrowings

20

—Repayment of short-term borrowings

(30)

—Repurchase of shares of common stock

(218)

(173)Cash dividends paid on common stock

(102)

(90)Dividends paid to noncontrolling interests

(15)

(13)Other, net

(8)

(4)Net Cash Used in Financing Activities

(353)

(280)Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash

3

2Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash

(33)

102Cash, Cash Equivalents, and Restricted Cash - Beginning of Period

506

723Cash, Cash Equivalents, and Restricted Cash - End of Period

$                   473

$                   825  In this press release:Certain performance metrics and non-GAAP measures are presented excluding the impact of foreign currency translation ("F/X"). These amounts are derived by translating current year results at prior year average exchange rates. We believe the elimination of the F/X impact provides better year-to-year comparability without the distortion of foreign currency fluctuations.System sales growth reflects the results of all restaurants regardless of ownership, including Company-owned and franchise restaurants that operate our restaurant concepts, except for non-Company-owned restaurants for which we do not receive a sales-based royalty. Sales of franchise restaurants typically generate ongoing franchise fees for the Company at an average rate of approximately 6% of system sales. Franchise restaurant sales are not included in Company sales in the Condensed Consolidated Statements of Income; however, the franchise fees are included in the Company's revenues. We believe system sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all of our revenue drivers, Company and franchise same-store sales as well as net unit growth.Effective January 1, 2018, the Company revised its definition of same-store sales growth to represent the estimated percentage change in sales of food of all restaurants in the Company system that have been open prior to the first day of our prior fiscal year, excluding the period during which stores are temporarily closed. We refer to these as our "base" stores. Previously, same-store sales growth represented the estimated percentage change in sales of all restaurants in the Company system that have been open for one year or more, including stores temporarily closed, and the base stores changed on a rolling basis from month to month. This revision was made to align with how management measures performance internally and focuses on trends of a more stable base of stores. Unit Count by Brand


















KFC

12/31/2025
New Builds
Closures
3/31/2026




Company-owned
11,032
355
(70)
11,317




Franchisees
1,965
182
(10)
2,137




Total
12,997
537
(80)
13,454

































Pizza Hut

12/31/2025
New Builds
Closures
3/31/2026




Company-owned
3,830
154
(52)
3,932




Franchisees
338
107
(2)
443




Total
4,168
261
(54)
4,375




















Others

12/31/2025
New Builds
Closures
3/31/2026




Company-owned
198
12
(11)
199




Franchisees
738
33
(62)
709




Total
936
45
(73)
908


















  Reconciliation of Reported GAAP Results to Non-GAAP Measures
(in millions, except per share data)
(unaudited)In addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") in this press release, the Company provides the following non-GAAP measures:Measures adjusted for Special Items, which include Adjusted Operating Profit, Adjusted Net Income, Adjusted Earnings Per Common Share ("EPS"), Adjusted Effective Tax Rate and Adjusted EBITDA;Company Restaurant Profit ("Restaurant profit") and Restaurant margin;Core Operating Profit and Core OP margin, which exclude Special Items, and further adjusted for Items Affecting Comparability and the impact of F/X;These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measures provides additional information to investors to facilitate the comparison of past and present results, excluding those items that the Company does not believe are indicative of our core operations.With respect to non-GAAP measures adjusted for Special Items, the Company excludes impact from Special Items for the purpose of evaluating performance internally and uses them as factors in determining compensation for certain employees. Special Items are not included in any of our segment results.Adjusted EBITDA is defined as net income including noncontrolling interests adjusted for equity in net earnings (losses) from equity method investments, income tax, interest income, net, investment gain or loss, depreciation and amortization, store impairment charges, and Special Items. Store impairment charges included as an adjustment item in Adjusted EBITDA primarily resulted from our semi-annual impairment evaluation of long-lived assets of individual restaurants, and additional impairment evaluation whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If these restaurant-level assets were not impaired, depreciation of the assets would have been recorded and included in EBITDA. Therefore, store impairment charges were a non-cash item similar to depreciation and amortization of our long-lived assets of restaurants. The Company believes that investors and analysts may find it useful in measuring operating performance without regard to such non-cash items.Restaurant Profit is defined as Company sales less expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, restaurant-level payroll and employee benefits, rent, depreciation and amortization of restaurant-level assets, advertising expenses, and other operating expenses. Company restaurant margin percentage is defined as Restaurant profit divided by Company sales. We also use Restaurant profit and Restaurant margin for the purposes of internally evaluating the performance of our Company-owned restaurants and we believe they provide useful information to investors as to the profitability of our Company-owned restaurants.Core Operating Profit is defined as Operating Profit adjusted for Special Items, and further excluding Items Affecting Comparability and the impact of F/X. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Items such as charges, gains and accounting changes which are viewed by management as significantly impacting the current period or the comparable period, due to changes in policy or other external factors, or non-cash items pertaining to underlying activities that are different from or unrelated to our core operations, are generally considered "Items Affecting Comparability." Examples of Items Affecting Comparability include, but are not limited to: temporary relief from landlords and government agencies; VAT deductions due to tax policy changes; and amortization of reacquired franchise rights recognized upon acquisitions. We believe presenting Core Operating Profit provides additional information to further enhance comparability of our operating results and we use this measure for purposes of evaluating the performance of our core operations. Core OP margin is defined as Core Operating Profit divided by Total revenues, excluding the impact of F/X.The following tables set forth the reconciliation of the most directly comparable GAAP financial measures to the non-GAAP financial measures. The reconciliation of GAAP Operating Profit to Restaurant Profit and Core Operating Profit by segment is presented in Segment Results within this release.

Quarter Ended

3/31/2026
3/31/2025









Reconciliation of Operating Profit to Adjusted Operating Profit



Operating Profit
$              447
$            399Special Items, Operating Profit 
—
—Adjusted Operating Profit
$              447
$            399Reconciliation of Net Income to Adjusted Net Income



Net Income – Yum China Holdings, Inc.
$              309
$            292Special Items, Net Income –Yum China Holdings, Inc.
—
—Adjusted Net Income – Yum China Holdings, Inc.
$              309
$            292Reconciliation of EPS to Adjusted EPS



Basic Earnings Per Common Share
$             0.88
$           0.78Special Items, Basic Earnings Per Common Share
—
—Adjusted Basic Earnings Per Common Share
$             0.88
$           0.78Diluted Earnings Per Common Share
$             0.87
$           0.77Special Items, Diluted Earnings Per Common Share
—
—Adjusted Diluted Earnings Per Common Share
$             0.87
$           0.77Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate



Effective tax rate
27.2 %
27.8 %Impact on effective tax rate as a result of Special Items
—
—Adjusted effective tax rate
27.2 %
27.8 % Net income, along with the reconciliation to Adjusted EBITDA, is presented below:


















Quarter Ended

3/31/2026
3/31/2025









Net Income – Yum China Holdings, Inc.
$         309
$         292Net income – noncontrolling interests
22
21Equity in net (earnings) losses from equity method investments
(2)
(4)Income tax provision
123
119Interest income, net
(16)
(26)Investment loss (gain)
11
(3)Operating Profit
447
399Special Items, Operating Profit
—
—Adjusted Operating Profit
447
399Depreciation and amortization
117
109Store impairment charges
4
6Adjusted EBITDA
$         568
$         514 Operating Profit, along with the reconciliation to Core Operating Profit, is presented below:












Quarter ended
% Change


3/31/2026
3/31/2025
B/(W)








Operating Profit
$         447
$         399
12
Special Items, Operating Profit 
—
—


Adjusted Operating Profit
$         447
$         399
12
Items Affecting Comparability
—
—


F/X impact
(24)
—


Core Operating Profit
$         423
$         399
6
Total revenues
3,271
2,981
10
F/X impact
(159)
—


Total revenues, excluding the impact of F/X
$      3,112
$      2,981
4
Core OP margin
13.6 %
13.4 %
0.2ppts.








  Yum China Holdings, Inc.Segment Results(in US$ million)(unaudited)














Quarter Ended 3/31/2026

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalCompany sales
$      2,410
$         627
$                 10
$                 —
$              —
$      3,047Franchise fees and income
23
3
4
—
—
30Revenues from transactions with franchisees(2)
19
2
26
109
—
156Other revenues
1
3
248
22
(236)
38Total revenues
$      2,453
$         635
$               288
$               131
$          (236)
$      3,271Company restaurant expenses
1,949
533
13
—
(1)
2,494General and administrative expenses
61
26
6
44
—
137Franchise expenses
11
1
—
—
—
12Expenses for transactions with franchisees(2)
15
2
25
108
—
150Other operating costs and expenses
—
2
243
21
(235)
31Total costs and expenses, net
2,036
564
287
173
(236)
2,824Operating Profit (Loss)
$         417
$           71
$                   1
$                (42)
$              —
$         447

























Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:









Quarter Ended 3/31/2026

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$         417
$           71
$                   1
$                (42)
$              —
$         447Less:











Franchise fees and income
23
3
4
—
—
30Revenues from transactions with franchisees(2)
19
2
26
109
—
156Other revenues
1
3
248
22
(236)
38Add:











General and administrative expenses
61
26
6
44
—
137Franchise expenses
11
1
—
—
—
12Expenses for transactions with franchisees(2)
15
2
25
108
—
150Other operating costs and expenses
—
2
243
21
(235)
31Restaurant profit (loss)
$         461
$           94
$                  (3)
$                 —
$                1
$         553Company sales
2,410
627
10
—
—
3,047Restaurant margin
19.1 %
15.0 %
(14.9) %
N/A
N/A
18.2 %

























Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:









Quarter Ended 3/31/2026

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$         417
$           71
$                   1
$                (42)
$              —
$         447Special Items, Operating Profit 
—
—
—
—
—
—Adjusted Operating Profit (Loss)
$         417
$           71
$                   1
$                (42)
$              —
$         447Items Affecting Comparability
—
—
—
—
—
—F/X impact
(21)
(4)
—
1
—
(24)Core Operating Profit (Loss)
$         396
$           67
$                   1
$                (41)
$              —
$         423














Quarter Ended 3/31/2025

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalCompany sales
$      2,208
$         584
$                   9
$                 —
$              —
$      2,801Franchise fees and income
21
2
4
—
—
27Revenues from transactions with franchisees(2)
16
2
19
84
—
121Other revenues
1
7
170
17
(163)
32Total revenues
$      2,246
$         595
$               202
$               101
$          (163)
$      2,981Company restaurant expenses
1,771
500
11
—
(1)
2,281General and administrative expenses
59
26
8
45
—
138Franchise expenses
10
1
—
—
—
11Expenses for transactions with franchisees(2)
14
2
17
84
—
117Other operating costs and expenses
1
6
167
17
(162)
29Closures and impairment expenses, net
5
—
1
—
—
6Total costs and expenses, net
1,860
535
204
146
(163)
2,582Operating Profit (Loss)
$         386
$           60
$                  (2)
$                (45)
$              —
$         399

























Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:









Quarter Ended 3/31/2025

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$         386
$           60
$                  (2)
$                (45)
$              —
$         399Less:











Franchise fees and income
21
2
4
—
—
27Revenues from transactions with franchisees(2)
16
2
19
84
—
121Other revenues
1
7
170
17
(163)
32Add:











General and administrative expenses
59
26
8
45
—
138Franchise expenses
10
1
—
—
—
11Expenses for transactions with franchisees(2)
14
2
17
84
—
117Other operating costs and expenses
1
6
167
17
(162)
29Closures and impairment expenses, net
5
—
1
—
—
6Restaurant profit (loss)
$         437
$           84
$                  (2)
$                 —
$                1
$         520Company sales
2,208
584
9
—
—
2,801Restaurant margin
19.8 %
14.4 %
(20.9) %
N/A
N/A
18.6 %

























Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:









Quarter Ended 3/31/2025

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$         386
$           60
$                  (2)
$                (45)
$              —
$         399Special Items, Operating Profit 
—
—
—
—
—
—Adjusted Operating Profit (Loss)
$         386
$           60
$                  (2)
$                (45)
$              —
$         399Items Affecting Comparability
—
—
—
—
—
—F/X impact
—
—
—
—
—
—Core Operating Profit (Loss)
$         386
$           60
$                  (2)
$                (45)
$              —
$         399












The above tables reconcile segment information, which is based on management responsibility, with our Condensed Consolidated Statements of Income.  












(1) Amounts have not been allocated to any segment for purpose of making operating decision or assessing financial performance as the transactions are deemed corporate revenues and
expenses in nature.(2) Primarily includes revenues and associated expenses of transactions with franchisees derived from the Company's central procurement model whereby the Company centrally
purchases substantially all food and paper products from suppliers and then sells and delivers to KFC and Pizza Hut restaurants, including franchisees. 



View original content:https://www.prnewswire.com/news-releases/yum-china-reports-first-quarter-2026-results-302756719.htmlSOURCE Yum China Holdings, Inc.

Original: Yum China Reports First Quarter 2026 Results

Yum China Announces Disclosure under Hong Kong Stock Exchange Rules in Relation to a Possible Quarterly DividendApril 16, 2026 5:00 AM
PR Newswire (US)

SHANGHAI, April 16, 2026 /PRNewswire/ -- Yum China Holdings, Inc. (NYSE: YUMC and HKEX: 9987, "Yum China" or the "Company") today announced, in compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "HKEX") which require advance notice of board meetings at which a dividend is expected to be declared, that its board of directors (the "Board") will consider the declaration and payment of a quarterly dividend (the "Dividend"). If the Board decides to proceed, the declaration will be adopted by Board resolution on or around April 29, 2026 (Beijing/Hong Kong Time) and will be promptly disclosed by the Company.The Company makes available through the Investor Relations section of its internet website at http://ir.yumchina.com its filings with the HKEX as soon as reasonably practicable after electronically filing such materials with the HKEX. These filings may also be obtained by visiting the HKEX's website at http://www.hkex.com.hk. As no Board resolution in relation to the Dividend has been adopted as of the date of this press release, there is no assurance that the Dividend will be declared.Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results.About Yum China Holdings, Inc. Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 18,000 restaurants under six brands across around 2,500 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has also partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit http://ir.yumchina.com. Investor Relations Contact
Tel: +86 21 2407 7556
E-mail: IR@yumchina.com Media Contact
Tel: +86 21 2407 3824
E-mail: Media@yumchina.com 



View original content:https://www.prnewswire.com/news-releases/yum-china-announces-disclosure-under-hong-kong-stock-exchange-rules-in-relation-to-a-possible-quarterly-dividend-302744445.htmlSOURCE Yum China Holdings, Inc.

Original: Yum China Announces Disclosure under Hong Kong Stock Exchange Rules in Relation to a Possible Quarterly Dividend

Yum China to Report First Quarter 2026 Financial ResultsApril 15, 2026 5:00 AM
PR Newswire (US)

SHANGHAI, April 15, 2026 /PRNewswire/ -- Yum China Holdings, Inc. (NYSE: YUMC and HKEX: 9987, "Yum China" or the "Company") today announced that it will report its unaudited financial results for the first quarter ended March 31, 2026 before the U.S. market opens on Wednesday, April 29, 2026 (after the trading hours of the Hong Kong Stock Exchange on Wednesday, April 29, 2026).Yum China's management will hold an earnings conference call at 7:00 a.m. U.S. Eastern Time on Wednesday, April 29, 2026 (7:00 p.m. Beijing/Hong Kong Time on Wednesday, April 29, 2026).A live webcast of the call may be accessed at  https://edge.media-server.com/mmc/p/hkitwxns.To join by phone, please register in advance through the link provided below. Upon registering, you will be provided with participant dial-in numbers and a unique access PIN.Pre-registration Link: https://register-conf.media-server.com/register/BI1a0396f7d4794eedbe6ef6771b06b43aA replay of the webcast will be available two hours after the event and will remain accessible until April 28, 2027. Earnings release accompanying slides will be available at the Company's Investor Relations website http://ir.yumchina.com.  About Yum China Holdings, Inc. Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 18,000 restaurants under six brands across over 2,500 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has also partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit http://ir.yumchina.com.Investor Relations Contact
Tel: +86 21 2407 7556
E-mail: IR@yumchina.com Media Contact
Tel: +86 21 2407 3824
E-mail: Media@yumchina.com 



View original content:https://www.prnewswire.com/news-releases/yum-china-to-report-first-quarter-2026-financial-results-302742773.htmlSOURCE Yum China Holdings, Inc.

Original: Yum China to Report First Quarter 2026 Financial Results

BYD and KFC team up, to offer fast charging and fried chicken

KFC® Brings Back the Fan-Favorite Twister* and Launches New $20 Customizable Bucket**February 24, 2026 12:04 PM
PR Newswire (US)

A nostalgic classic returns for a limited time, alongside a new option to bring everyone to the tablePLANO, Texas, Feb. 24, 2026 /PRNewswire/ -- KFC® is expanding how guests can order across occasions with the return of the Twister and the debut of the $20 Build a Bucket, a new bundle designed for sharing and variety. Together, the two offerings make it easier to enjoy KFC whether you're grabbing something for yourself or feeding a crowd. 







"In today's market, value can't just mean price, and portability can't come at the expense of satisfaction," said Melissa Cash, Chief Marketing Officer, KFC U.S. "We brought back the original Twister fans love as a wrap that stands on its own, now with even more ways to customize it, including a bacon option. And for those moments meant to be shared, we designed the $20 Build a Bucket to deliver generous portions with built-in flexibility. It's about delivering real abundance and real choice for solo meals and shared tables alike, without compromising on value."The Return of the TwisterBack on the menu by popular demand, the Twister features two crispy Original Recipe® Tenders layered with fresh lettuce, diced tomato and KFC's signature Pepper Mayo inside a warm tortilla. Reintroduced with a more substantial build, it returns as a wrap meant to satisfy as the main event, not just a side.Available in two builds:Twister Classic: Two crispy Original Recipe® Tenders with lettuce, tomato and Pepper Mayo.Twister Bacon: Two crispy Original Recipe® Tenders topped with hickory-smoked bacon, lettuce, tomato and Pepper Mayo.For those who like heat, fans can add Zinger Sauce for an extra kick. Whether it's a commute, a lunch break or a late-night run, the Twister offers portability with a filling punch.Introducing the $20 Build a Bucket: The Bundle That Proves Sharing Doesn't Mean CompromiseWhen dinner turns into a debate, the $20 Build a Bucket is KFC's answer. The customizable meal is designed to simplify ordering for the table while still giving everyone a say.8 pieces of Chicken on the Bone or 8 Original Recipe® Tenders4 individual sides (your pick)4 buttery, flaky biscuits4 sauces (with Tenders)From busy weeknights to last-minute gatherings, this shareable option takes the guesswork out of mealtime and puts the focus back on enjoying time together.Built for Today, Rooted in Original Recipe®
Both the Twister and the $20 Build a Bucket reflect KFC's focus on meeting guests where they are, with portable options that satisfy and customizable dinners that deliver real value. Together, they mark the latest step in KFC's ongoing evolution, as the brand continues to modernize its menu while staying true to its Original Recipe® roots.* Prices and participation may vary. Offer available while supplies last.
**Prices and participation may vary. Prices higher in AK, HI, CA and third-party ordering websites. Tax, tip and fees extra. Offer includes choice of 8pc dark meat chicken on the bone OR 8pc tenders with 4 sauces, 4 ind. sides and 4 biscuits. Extra charge for breast pc. substitution.About KFC
KFC Corporation, based in Plano, TX., has been serving up Finger Lickin' Good Original Recipe® fried chicken since 1952, including chicken on the bone, nuggets and tenders. Beyond the top secret 11 herbs & spices, KFC specialties include the KFC Chicken Sandwich, Extra Crispy™ chicken, KFC Famous Bowls®, Pot Pies, Secret Recipe Fries, biscuits and homestyle sides. There are over 30,000 KFC restaurants in 150 countries and territories around the world. KFC Corporation is a subsidiary of Yum! Brands, Inc., Louisville, Ky. (NYSE: YUM). For more information, visit www.kfc.com. Follow KFC on Facebook, Twitter, Instagram and TikTok.Media Contact:
kfcusmedia@yum.com














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Original: KFC® Brings Back the Fan-Favorite Twister* and Launches New $20 Customizable Bucket**

Taco Bell Owner Yum China Shares Climb After Q4 Results Beat ForecastsFebruary 4, 2026 8:23 AM
IH Market News
Yum China Holdings, Inc. (NYSE:YUMC) reported fourth-quarter results on Wednesday that came in ahead of market expectations, supported by solid same-store sales momentum and strong growth in delivery, lifting its shares in premarket trading.The restaurant operator’s stock rose 1.50% ahead of the opening bell following the earnings release.Adjusted earnings per share for the quarter totaled $0.40, exceeding analysts’ estimates of $0.37. Revenue increased 9% year on year to $2.82 billion, topping the consensus forecast of $2.72 billion.During the quarter, system sales grew 7% from a year earlier, while same-store sales advanced 3%, marking the third straight quarter of positive comparable growth. Same-store transactions rose 4% year on year, extending a streak that now spans 12 consecutive quarters. Restaurant margin improved to 13.0%, up 70 basis points compared with the prior year.“Our fourth quarter performance capped off 2025 on a high note. Thanks to our team’s hard work, we delivered same-store sales growth for three consecutive quarters and same-store transactions growth for twelve consecutive quarters,” said Joey Wat, CEO of Yum China.Delivery continued to be a major growth driver, with sales jumping 34% year on year and accounting for roughly 53% of total company revenue, up from 42% in the same quarter last year. Yum China also opened a record 587 net new stores during the quarter, with franchisees responsible for 36% of the additions.KFC, the group’s largest brand, posted an 8% increase in system sales, alongside 3% growth in same-store sales. Pizza Hut recorded a 6% rise in system sales, with same-store sales up 1%.For the full year 2025, Yum China reported system sales growth of 4% and a 1% increase in same-store sales. The company added 1,706 net new locations over the year, bringing its total restaurant count to 18,101.The board also approved a 21% increase in the cash dividend to $0.29 per share. Looking ahead, Yum China said it is targeting more than 20,000 stores in 2026 and aims to surpass 30,000 locations by 2030.Yum Brands stock price

Original: Taco Bell Owner Yum China Shares Climb After Q4 Results Beat Forecasts

Yum China Reports Fourth Quarter 2025 ResultsFebruary 4, 2026 5:00 AM
PR Newswire (US)

Fourth Quarter Same-Store Sales Increased 3%, System Sales Grew 7% and Operating Profit Up 25%Full Year Operating Profit Rose 11%; Diluted EPS Up 8%, or 14% Excluding Mark-to-Market and F/X ImpactIncrease Dividend by 21% and On Track to Return $1.5 billion to Shareholders in 2026SHANGHAI, Feb. 4, 2026 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the fourth quarter and year ended December 31, 2025.Fourth Quarter HighlightsTotal system sales grew 7% year over year ("YoY"), excluding foreign currency translation ("F/X").Same-store sales grew 3% YoY, the third consecutive quarter of growth. Same-store transactions grew 4% YoY, the 12th consecutive quarter of growth.Total revenues increased 9% YoY to $2.8 billion, or a 7% increase excluding F/X.Opened a fourth-quarter record of 587 net new stores, of which 36% were opened by franchisees.Operating profit grew 25% YoY to $187 million. Core operating profit grew 23% YoY.OP margin was 6.6%, an increase of 80 basis points YoY.Restaurant margin was 13.0%, an increase of 70 basis points YoY, driven primarily by improvements in Food and Paper and Occupancy and Other Operating expenses ratios.Diluted EPS increased 33% YoY to $0.40, or up 29% excluding F/X, and up 21% further excluding the impact(1) of the mark-to-market equity investments.Delivery sales grew 34% YoY. Delivery contributed approximately 53% of total Company sales, up from 42% in the same quarter last year.Full Year HighlightsTotal system sales grew 4% YoY, excluding F/X.Same-store sales grew 1% YoY.Total revenues increased 4% YoY to $11.8 billion, also a 4% increase excluding F/X.Opened 1,706 net new stores, of which 31% were opened by franchisees. Total store count reached 18,101 as of December 31, 2025.Operating profit grew 11% YoY to $1.3 billion. Core operating profit also grew 11% YoY.OP margin was 10.9%, up 60 basis points YoY.Restaurant margin was 16.3%, an increase of 60 basis points YoY, driven primarily by improvements in Food and Paper and Occupancy and Other Operating expenses ratios.Diluted EPS increased 8% YoY to $2.51, also up 8% excluding F/X, and up 14% further excluding the impact(2) of the mark-to-market equity investments.Returned $1.5 billion to shareholders in 2025 through $353 million in cash dividends and $1.14 billion in share repurchases.Delivery sales grew 25% YoY. Delivery contributed approximately 48% of total Company sales, up from 39% last year.Total membership of KFC and Pizza Hut exceeded 590 million, up 13% YoY. Active Members, defined as those who transacted in the past 12 months, of KFC or Pizza Hut, exceeded 265 million, representing a 13% YoY increase.(1) Refers to a 1 cent favorable F/X impact, a lower mark-to-market loss of 0.1 cent in the fourth quarter of 2025, compared with a loss of 2 cents in the fourth quarter of 2024.(2) Refers to an unfavorable impact from a mark-to-market loss of 6 cents in full year 2025 and a mark-to-market gain of 8 cents in full year 2024, and minimal F/X impact.CEO CommentsJoey Wat, CEO of Yum China, commented, "Our fourth quarter performance capped off 2025 on a high note. Thanks to our team's hard work, we delivered same-store sales growth for three consecutive quarters and same-store transactions growth for twelve consecutive quarters. System sales growth sequentially improved to 7%, and operating profit increased 25% year-over-year in the fourth quarter. KFC has unlocked new consumption occasions through its KCOFFEE cafe and KPRO side-by-side modules. Pizza Hut has enhanced its value-for-money proposition and developed the WOW model to expand into previously untapped locations, especially in lower-tier cities."Wat concluded, "Looking ahead, we are on track to reach over 20,000 stores in 2026 and are targeting more than 30,000 stores by 2030 with an equity-and-franchise hybrid model. We are also broadening our addressable market through front-end segmentation and back-end consolidation. As discussed at our Investor Day, we remain committed to executing our RGM 3.0 strategy, with a dual focus on innovation and operational efficiency."Key Financial Results
Fourth Quarter

Full Year




%/ppts Change





%/ppts Change
2025
2024
Reported
Ex F/X

2025
2024
Reported
Ex F/XSystem Sales Growth (3) (%)7
4
NM
NM

4
5
NM
NMSame-Store Sales Growth (3) (%)3
(1)
NM
NM

1
(3)
NM
NMOperating Profit ($mn)187
151
+25
+23

1,290
1,162
+11
+11Adjusted Operating Profit (4) ($mn)187
151
+25
+23

1,290
1,162
+11
+11Core Operating Profit (4) (5) ($mn)185
151
NM
+23

1,292
1,162
 NM 
+11OP Margin (6) (%)6.6
5.8
+0.8
+0.8

10.9
10.3
+0.6
+0.7Core OP Margin (4) (7) (%)6.6
5.8
NM
+0.8

11.0
10.3
 NM 
+0.7Net Income ($mn)140
115
+24
+22

929
911
+2
+2Adjusted Net Income (4) ($mn)140
115
+24
+22

929
911
+2
+2Diluted Earnings 
  Per Common Share ($)0.40
0.30
+33
+29

2.51
2.33
+8
+8Adjusted Diluted Earnings 
  Per Common Share (4) ($)0.40
0.30
+33
+29

2.51
2.33
+8
+8(3) System sales and same-store sales percentages exclude the impact of F/X. Effective January 1, 2018, temporary store closures are normalized in the same-store sales calculation by excluding 
the period during which stores are temporarily closed.(4) See "Reconciliation of Reported GAAP Results to non-GAAP Measures" included in the accompanying tables of this release for further details.(5) Core operating profit is defined as operating profit adjusted for special items, further excluding items affecting comparability and the impact of F/X. The Company uses core operating profit 
for the purposes of evaluating the performance of its core operations. Current period amounts are derived by translating results at average exchange rates of the prior year period.(6) OP margin refers to operating profit as a percentage of total revenues.(7) Core OP margin refers to core operating profit as a percentage of total revenues excluding F/X.Note:  All comparisons are versus the same period a year ago. Percentages may not recompute due to rounding. NM refers to not meaningful.Capital Returns to ShareholdersThe Company is on track to return $1.5 billion each year from 2024 to 2026, which is annually around 8% of our market capitalization as of February 3, 2026.In 2025, the Company returned $1.5 billion for the full year and $539 million in the fourth quarter. For the full year, Yum China repurchased 24.7 million shares of common stock, which is equivalent to approximately 7% of its outstanding shares as of December 31, 2024.In 2026, the Company plans to return $1.5 billion in capital to shareholders.Yum China's board of directors (the "Board") declared a 21% increase in the cash dividend, raising it to $0.29 per share on Yum China's common stock, payable on March 25, 2026, to shareholders of record as of the close of business on March 4, 2026.The Company has entered into share repurchase agreements in the U.S. and Hong Kong for an aggregate repurchase amount of approximately US$460 million through open market transactions for the first half of 2026. The share repurchase agreements include approximately US$350 million under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934 in the U.S. and approximately HK$880 million for a similar program in Hong Kong.Starting in 2027, the Company plans to return approximately 100% of annual free cash flow after subsidiaries' dividend payments to non-controlling interests. This is anticipated to translate into an average annual return of approximately $900 million to over $1 billion in 2027 and 2028, and to exceed $1 billion in 2028.KFC
Fourth QuarterFull Year




%/ppts Change



%/ppts Change
2025
2024
Reported
Ex F/X2025
2024
Reported
Ex F/XRestaurants12,997
11,648
+12
NM12,997
11,648
+12
NMSystem Sales Growth (%)8
5
NM
NM5
6
NM
NMSame-Store Sales Growth (%)3
(1)
NM
NM1
(2)
NM
NMTotal Revenues ($mn)2,125
1,954
+9
+78,871
8,509
+4
+4Operating Profit ($mn)223
192
+16
+141,285
1,192
+8
+8Core Operating Profit ($mn)220
192
NM
+141,285
1,192
NM
+8OP Margin (%)10.5
9.9
+0.6
+0.614.5
14.0
+0.5
+0.5Restaurant Margin (%)14.0
13.3
+0.7
+0.717.4
16.9
+0.5
+0.5Fourth Quarter:System sales for KFC grew 8% YoY. Same-store sales increased 3% YoY, and same-store transactions grew 3% YoY. Ticket average was flat YoY, as growth in smaller orders was offset by increased delivery mix, which carries a relatively higher ticket average.Delivery sales grew 34% YoY, contributing approximately 53% of KFC's Company sales, up from 42% in the same quarter last year.Operating profit increased 16% YoY to $223 million. Core operating profit increased 14% YoY.OP margin was 10.5%, an increase of 60 basis points YoY.Restaurant margin was 14.0%, expanding 70 basis points YoY, primarily due to streamlined operations and favorable commodity prices, partially offset by the impact of increased rider cost due to the higher delivery mix and wage inflation in low single digits.Full Year:System sales for KFC grew 5% YoY. Same-store sales grew 1% YoY.Delivery sales grew 26% YoY, contributing approximately 48% of KFC's Company sales.KFC opened 1,349 net new stores in 2025, with 504 net new stores opened by franchisees, accounting for 37%. Total store count reached 12,997 stores at year-end 2025, of which 15% are operated by franchisees.Operating profit was $1.3 billion, up 8% YoY. Core operating profit also increased 8% YoY.OP margin was 14.5%, an increase of 50 basis points YoY.Restaurant margin was 17.4%, expanding 50 basis points YoY, primarily due to favorable commodity prices and streamlined operations, partially offset by the impact of increased rider cost due to the higher delivery mix and value-for-money offerings.Pizza Hut
Fourth QuarterFull Year




%/ppts Change



%/ppts Change
2025
2024
Reported
Ex F/X2025
2024
Reported
Ex F/XRestaurants4,168
3,724
+12
NM4,168
3,724
+12
NMSystem Sales Growth (%)6
3
NM
NM4
2
NM
NMSame-Store Sales Growth (%)1
(2)
NM
NM1
(5)
NM
NMTotal Revenues ($mn)540
510
+6
+42,324
2,260
+3
+3Operating Profit ($mn)20
14
+52
+51183
153
+19
+20Core Operating Profit ($mn)20
14
NM
+51184
153
NM
+20OP Margin (%)3.7
2.6
+1.1
+1.17.9
6.8
+1.1
+1.1Restaurant Margin (%)9.9
9.3
+0.6
+0.612.8
12.0
+0.8
+0.8Fourth Quarter:System sales for Pizza Hut grew 6% YoY. Same-store sales increased 1% YoY. Same-store transactions grew 13% YoY, the 12th consecutive quarter of growth. Ticket average was 11% lower YoY, consistent with our mass-market strategy and driven mainly by better value-for-money.Delivery sales grew 33% YoY, contributing approximately 54% of Pizza Hut's Company sales, up from 42% in the same quarter last year.Operating profit grew 52% YoY to $20 million, a fourth-quarter record high. Core operating profit increased 51% YoY.OP margin was 3.7%, an increase of 110 basis points YoY.Restaurant margin was 9.9%, expanding 60 basis points YoY, primarily due to streamlined operations and automation, favorable commodity prices, partially offset by the impact of increased cost associated with higher delivery sales mix and value-for-money offerings.Full Year:System sales for Pizza Hut grew 4% YoY. Same-store sales grew 1% YoY.Delivery sales grew 22% YoY, contributing approximately 47% of Pizza Hut's Company sales.Pizza Hut opened a record 444 net new stores in 2025, with 139 net new stores opened by franchisees, accounting for 31%. Total store count reached 4,168 stores at year-end 2025, of which 8% are operated by franchisees.Operating profit was $183 million, up 19% YoY. Core operating profit increased 20% YoY.OP margin was 7.9%, an increase of 110 basis points YoY, and a record level since the Company's listing in 2016.Restaurant margin was 12.8%, expanding 80 basis points YoY, primarily due to favorable commodity prices, streamlined operations and automation, partially offset by the impact of value-for-money offerings and increased cost associated with higher delivery sales mix.2026 OutlookThe Company targets:Total stores of over 20,000, or more than 1,900 net new stores.40-50% franchise mix of net new stores for both KFC and Pizza Hut.Capital expenditures of approximately $600 million to $700 million.$1.5 billion capital return to shareholders.Other UpdatesYum China has been named a Top Employer in China by the Top Employers Institute for the eighth consecutive year and ranked first in the restaurant industry for the fifth year in a row. These recognitions highlight the Company's unwavering commitment to fostering an outstanding workplace and employee experience. Note on Non-GAAP MeasuresReported GAAP results include items that are excluded from non-GAAP measures. See "Reconciliation of Reported GAAP Results to Non-GAAP Measures" and "Segment Results" within this release for non-GAAP reconciliation details.Conference CallYum China's management will hold an earnings conference call at 7:00 a.m. U.S. Eastern Time on Wednesday, February 4, 2026 (8:00 p.m. Beijing/Hong Kong Time on Wednesday, February 4, 2026).A live webcast of the call may be accessed at https://edge.media-server.com/mmc/p/yzqfdybh.To join by phone, please register in advance through the link provided below. Upon registering, you will be provided with participant dial-in numbers and a unique access PIN.Pre-registration Link: https://register-conf.media-server.com/register/BI94a8d7c07e5f45f2823c62b0f012cf5fA replay of the webcast will be available two hours after the event and will remain accessible until February 3, 2027. Earnings release accompanying slides will be available at the Company's Investor Relations website http://ir.yumchina.com.For important news and information regarding Yum China, including our filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange, visit Yum China's Investor Relations website at http://ir.yumchina.com. Yum China uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements under the section titled "2026 Outlook." We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook," "commit" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the future strategies, growth, business plans, investments, store openings, net new stores, franchise mix of net new stores, capital expenditures, capital returns, dividend and share repurchase plans, CAGR for system sales, operating profit and EPS, earnings, performance and returns, anticipated effects of population and macroeconomic trends, execution of the Company's RGM 3.0 strategy, the anticipated effects of our innovation, digital and delivery capabilities and investments on growth and beliefs regarding the long-term drivers of Yum China's business. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: whether we are able to achieve development goals at the times and in the amounts currently anticipated, if at all, the success of our marketing campaigns and product innovation, our ability to maintain food safety and quality control systems, changes in public health conditions, our ability to control costs and expenses, including tax costs, as well as changes in political, economic and regulatory conditions in China and the U.S., and those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Our plan of capital returns to shareholders is based on current expectations, which may change based on market conditions, capital needs or otherwise. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results.About Yum China Holdings, Inc.Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 18,000 restaurants under six brands across over 2,500 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain, which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit http://ir.yumchina.com. ContactsInvestor Relations Contact:

Tel: +86 21 2407 7556 IR@YumChina.com  


Media Contact:

Tel: +86 21 2407 3824Media@YumChina.com  Yum China Holdings, Inc.Condensed Consolidated Statements of Income(in US$ million, except per share data)(unaudited)
















Quarter Ended
% Change
Year Ended
% Change

12/31/2025
12/31/2024
B/(W)
12/31/2025
12/31/2024
B/(W)Revenues













Company sales
$       2,627
$       2,434
8

$     11,039
$     10,651
4
Franchise fees and income
25
22
13

104
94
10
Revenues from transactions with franchisees
126
101
23

502
420
20
Other revenues
45
38
18

152
138
9
Total revenues
2,823
2,595
9

11,797
11,303
4
Costs and Expenses, Net













Company restaurants













Food and paper
832
776
(7)

3,455
3,387
(2)
Payroll and employee benefits
771
685
(13)

2,987
2,787
(7)
Occupancy and other operating expenses
682
672
(1)

2,794
2,798
—
Company restaurant expenses
2,285
2,133
(7)

9,236
8,972
(3)
General and administrative expenses
169
156
(8)

581
568
(2)
Franchise expenses
9
8
(11)

41
37
(12)
Expenses for transactions with franchisees
120
98
(23)

481
404
(19)
Other operating costs and expenses
38
32
(16)

132
122
(7)
Closures and impairment expenses, net
15
17
14

37
39
8
Other income, net
—
—
10

(1)
(1)
488
Total costs and expenses, net
2,636
2,444
(8)

10,507
10,141
(4)
Operating Profit
187
151
25

1,290
1,162
11
Interest income, net
18
29
(38)

92
129
(29)
Investment gain (loss)
1
(10)
 NM 

(24)
40
 NM 
Income Before Income Taxes and
  Equity in Net Earnings (Losses) from
  Equity Method Investments
206
170
22

1,358
1,331
2
Income tax provision
(56)
(47)
(20)

(369)
(356)
(4)
Equity in net earnings (losses) from
   equity method investments
3
3
11

15
5
198
Net income – including noncontrolling interests
153
126
23

1,004
980
2
Net income – noncontrolling interests
13
11
(16)

75
69
(7)
Net Income – Yum China Holdings, Inc.
$         140
$         115
24

$         929
$         911
2
Effective tax rate
27.0 %
27.6 %
0.6 ppts. 
27.2 %
26.7 %
(0.5) ppts. 














Basic Earnings Per Common Share
$        0.40
$        0.30



$        2.52
$        2.34


Weighted-average shares outstanding
    (in millions)
359
379



369
388

















Diluted Earnings Per Common Share
$        0.40
$        0.30



$        2.51
$        2.33


Weighted-average shares outstanding
    (in millions)
361
382



371
390















































OP margin
6.6 %
5.8 %
0.8ppts.
10.9 %
10.3 %
0.6ppts.














Company sales
100.0 %
100.0 %



100.0 %
100.0 %


Food and paper
31.6
31.9
0.3 ppts. 
31.3
31.8
0.5ppts.Payroll and employee benefits
29.4
28.2
(1.2) ppts. 
27.1
26.2
(0.9)ppts.Occupancy and other operating expenses
26.0
27.6
1.6 ppts. 
25.3
26.3
1.0ppts.Restaurant margin
13.0 %
12.3 %
0.7 ppts. 
16.3 %
15.7 %
0.6ppts.





























Percentages may not recompute due to rounding. NM refers to not meaningful.  Yum China Holdings, Inc.KFC Operating Results(in US$ million)(unaudited)
















Quarter Ended
% Change
Year Ended
% Change

12/31/2025
12/31/2024
B/(W)
12/31/2025
12/31/2024
B/(W)Revenues













Company sales
$       2,087
$       1,923
9

$       8,717
$       8,375
4
Franchise fees and income
19
16
19

81
69
16
Revenues from transactions with franchisees
18
14
22

69
55
25
Other revenues
1
1
12

4
10
(62)
Total revenues
2,125
1,954
9

8,871
8,509
4
Costs and Expenses, Net













Company restaurants













Food and paper
649
612
(6)

2,690
2,645
(2)
Payroll and employee benefits
612
533
(15)

2,338
2,146
(9)
Occupancy and other operating expenses
534
523
(2)

2,175
2,170
—
Company restaurant expenses
1,795
1,668
(8)

7,203
6,961
(3)
General and administrative expenses
74
65
(13)

260
248
(5)
Franchise expenses
8
7
(10)

36
32
(11)
Expenses for transactions with franchisees
14
13
(8)

58
49
(21)
Other operating costs and expenses
—
1
 NM 

3
8
69
Closures and impairment expenses, net
11
8
(35)

26
19
(27)
Total costs and expenses, net
1,902
1,762
(8)

7,586
7,317
(4)
Operating Profit
$          223
$          192
16

$       1,285
$       1,192
8
OP margin
10.5 %
9.9 %
0.6ppts.
14.5 %
14.0 %
0.5ppts.














Company sales
100.0 %
100.0 %



100.0 %
100.0 %


Food and paper
31.1
31.8
0.7ppts.
30.9
31.6
0.7ppts.Payroll and employee benefits
29.3
27.7
(1.6)ppts.
26.8
25.6
(1.2)ppts.Occupancy and other operating expenses
25.6
27.2
1.6ppts.
24.9
25.9
1.0ppts.Restaurant margin
14.0 %
13.3 %
0.7ppts.
17.4 %
16.9 %
0.5ppts.





























Percentages may not recompute due to rounding. NM refers to not meaningful.  Yum China Holdings, Inc.Pizza Hut Operating Results(in US$ million)(unaudited)
















Quarter Ended
% Change
Year Ended
% Change

12/31/2025
12/31/2024
B/(W)
12/31/2025
12/31/2024
B/(W)Revenues













Company sales
$          529
$          500
6

$       2,282
$       2,223
3
Franchise fees and income
3
2
34

10
8
26
Revenues from transactions with franchisees
2
1
50

7
5
50
Other revenues
6
7
(18)

25
24
2
Total revenues
540
510
6

2,324
2,260
3
Costs and Expenses, Net













Company restaurants













Food and paper
179
160
(11)

752
727
(3)
Payroll and employee benefits
157
149
(5)

640
628
(2)
Occupancy and other operating expenses
142
143
1

598
600
—
Company restaurant expenses
478
452
(5)

1,990
1,955
(2)
General and administrative expenses
31
30
(5)

110
110
(1)
Franchise expenses
1
1
(29)

4
4
(19)
Expenses for transactions with franchisees
1
1
(37)

6
4
(35)
Other operating costs and expenses
6
6
7

23
22
(3)
Closures and impairment expenses, net
3
6
49

8
12
32
Total costs and expenses, net
520
496
(5)

2,141
2,107
(2)
Operating Profit
$            20
$            14
52

$          183
$          153
19
OP margin
3.7 %
2.6 %
1.1ppts.
7.9 %
6.8 %
1.1ppts.














Company sales
100.0 %
100.0 %



100.0 %
100.0 %


Food and paper
33.8
32.2
(1.6)ppts.
32.9
32.7
(0.2)ppts.Payroll and employee benefits
29.6
29.8
0.2ppts.
28.0
28.2
0.2ppts.Occupancy and other operating expenses
26.7
28.7
2.0ppts.
26.3
27.1
0.8ppts.Restaurant margin
9.9 %
9.3 %
0.6ppts.
12.8 %
12.0 %
0.8ppts.





























Percentages may not recompute due to rounding.   Yum China Holdings, Inc.Condensed Consolidated Balance Sheets(in US$ million)






12/31/2025
12/31/2024

(Unaudited)

ASSETS



Current Assets



Cash and cash equivalents
$            506
$            723Short-term investments
878
1,121Accounts receivable, net
95
79Inventories, net
438
405Prepaid expenses and other current assets
440
366Total Current Assets
2,357
2,694Property, plant and equipment, net
2,543
2,407Operating lease right-of-use assets
2,189
2,146Goodwill
1,963
1,880Intangible assets, net
148
144Long-term bank deposits and notes
678
1,088Equity investments
387
368Deferred income tax assets
156
138Other assets
362
256Total Assets
10,783
11,121




LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY



Current Liabilities



Accounts payable and other current liabilities
2,127
2,080Short-term borrowings
30
127Income taxes payable
89
76Total Current Liabilities
2,246
2,283Non-current operating lease liabilities
1,823
1,816Non-current finance lease liabilities
51
49Deferred income tax liabilities
406
389Other liabilities
158
157Total Liabilities
4,684
4,694




Redeemable Noncontrolling Interest
—
13




Equity



Common stock, $0.01 par value; 1,000 million shares authorized; 355 million shares
      and 379 million shares issued at December 31, 2025 and 2024, respectively;
      354 million shares and 378 million shares outstanding at December 31, 2025 and 2024, respectively.
4
4Treasury stock
(28)
(52)Additional paid-in capital
3,796
4,028Retained earnings
1,764
2,089Accumulated other comprehensive loss
(157)
(341)Total Yum China Holdings, Inc. Stockholders' Equity
5,379
5,728Noncontrolling interests
720
686Total Equity
6,099
6,414Total Liabilities, Redeemable Noncontrolling Interest and Equity
$       10,783
$        11,121  Yum China Holdings, Inc.Condensed Consolidated Statements of Cash Flows(in US$ million)(unaudited)









Year Ended


12/31/2025

12/31/2024Cash Flows – Operating Activities





Net income – including noncontrolling interests

$              1,004

$                 980Depreciation and amortization

448

476Non-cash operating lease cost

401

408Closures and impairment expenses

37

39Investment loss (gain)

24

(40)Equity in net (earnings) losses from equity method investments

(15)

(5)Distributions of income received from equity method investments

16

11Deferred income taxes

(14)

(7)Share-based compensation expense

42

41Changes in accounts receivable

(11)

(9)Changes in inventories

(14)

8Changes in prepaid expenses, other current assets and value-added tax assets

(51)

(27)Changes in accounts payable and other current liabilities

(33)

(3)Changes in income taxes payable

9

(12)Changes in non-current operating lease liabilities

(411)

(411)Other, net

34

(30)Net Cash Provided by Operating Activities

1,466

1,419






Cash Flows – Investing Activities





Capital spending

(626)

(705)Purchases of short-term investments, long-term bank deposits and notes

(7,583)

(4,728)Maturities of short-term investments, long-term bank deposits and notes

8,216

5,251Acquisition of equity investment

(14)

—Other, net

2

4Net Cash Used in Investing Activities

(5)

(178)






Cash Flows – Financing Activities





Proceeds from short-term borrowings

29

307Repayment of short-term borrowings

(129)

(346)Repurchase of shares of common stock

(1,144)

(1,249)Cash dividends paid on common stock

(353)

(248)Dividends paid to noncontrolling interests

(75)

(80)Acquisition of noncontrolling interests

(8)

—Other, net

(9)

(20)Net Cash Used in Financing Activities

(1,689)

(1,636)Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash

11

(10)Net Decrease in Cash, Cash Equivalents and Restricted Cash

(217)

(405)Cash, Cash Equivalents, and Restricted Cash - Beginning of Year

723

1,128Cash, Cash Equivalents, and Restricted Cash - End of Year

$                 506

$                 723In this press release:Certain performance metrics and non-GAAP measures are presented excluding the impact of foreign currency translation ("F/X"). These amounts are derived by translating current year results at prior year average exchange rates. We believe the elimination of the F/X impact provides better year-to-year comparability without the distortion of foreign currency fluctuations.System sales growth reflects the results of all restaurants regardless of ownership, including Company-owned and franchise restaurants that operate our restaurant concepts, except for non-Company-owned restaurants for which we do not receive a sales-based royalty. Sales of franchise restaurants typically generate ongoing franchise fees for the Company at an average rate of approximately 6% of system sales. Franchise restaurant sales are not included in Company sales in the Condensed Consolidated Statements of Income; however, the franchise fees are included in the Company's revenues. We believe system sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all of our revenue drivers, Company and franchise same-store sales as well as net unit growth.Effective January 1, 2018, the Company revised its definition of same-store sales growth to represent the estimated percentage change in sales of food of all restaurants in the Company system that have been open prior to the first day of our prior fiscal year, excluding the period during which stores are temporarily closed. We refer to these as our "base" stores. Previously, same-store sales growth represented the estimated percentage change in sales of all restaurants in the Company system that have been open for one year or more, including stores temporarily closed, and the base stores changed on a rolling basis from month to month. This revision was made to align with how management measures performance internally and focuses on trends of a more stable base of stores. Unit Count by Brand















KFC

12/31/2024
New Builds
Closures
Acquired
Refranchised
12/31/2025
Company-owned
10,187
1,177
(329)
2
(5)
11,032
Franchisees
1,461
546
(45)
(2)
5
1,965
Total
11,648
1,723
(374)
—
—
12,997




























Pizza Hut

12/31/2024
New Builds
Closures
Refranchised
12/31/2025


Company-owned
3,525
505
(199)
(1)
3,830


Franchisees
199
150
(12)
1
338


Total
3,724
655
(211)
—
4,168
















Others

12/31/2024
New Builds
Closures
12/31/2025




Company-owned
175
54
(31)
198




Franchisees
848
145
(255)
738




Total
1,023
199
(286)
936




Reconciliation of Reported GAAP Results to Non-GAAP Measures(in millions, except per share data)(unaudited)In addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") in this press release, the Company provides the following non-GAAP measures:Measures adjusted for Special Items, which include Adjusted Operating Profit, Adjusted Net Income, Adjusted Earnings Per Common Share ("EPS"), Adjusted Effective Tax Rate and Adjusted EBITDA;Company Restaurant Profit ("Restaurant profit") and Restaurant margin;Core Operating Profit and Core OP margin, which exclude Special Items, and further adjusted for Items Affecting Comparability and the impact of F/X;These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measures provides additional information to investors to facilitate the comparison of past and present results, excluding those items that the Company does not believe are indicative of our core operations.With respect to non-GAAP measures adjusted for Special Items, the Company excludes impact from Special Items for the purpose of evaluating performance internally and uses them as factors in determining compensation for certain employees. Special Items are not included in any of our segment results.Adjusted EBITDA is defined as net income including noncontrolling interests adjusted for equity in net earnings (losses) from equity method investments, income tax, interest income, net, investment gain or loss, depreciation and amortization, store impairment charges, and Special Items. Store impairment charges included as an adjustment item in Adjusted EBITDA primarily resulted from our semi-annual impairment evaluation of long-lived assets of individual restaurants, and additional impairment evaluation whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If these restaurant-level assets were not impaired, depreciation of the assets would have been recorded and included in EBITDA. Therefore, store impairment charges were a non-cash item similar to depreciation and amortization of our long-lived assets of restaurants. The Company believes that investors and analysts may find it useful in measuring operating performance without regard to such non-cash items.Restaurant Profit is defined as Company sales less expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, restaurant-level payroll and employee benefits, rent, depreciation and amortization of restaurant-level assets, advertising expenses, and other operating expenses. Company restaurant margin percentage is defined as Restaurant profit divided by Company sales. We also use Restaurant profit and Restaurant margin for the purposes of internally evaluating the performance of our Company-owned restaurants and we believe they provide useful information to investors as to the profitability of our Company-owned restaurants.Core Operating Profit is defined as Operating Profit adjusted for Special Items, and further excluding Items Affecting Comparability and the impact of F/X. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Items such as charges, gains and accounting changes which are viewed by management as significantly impacting the current period or the comparable period, due to changes in policy or other external factors, or non-cash items pertaining to underlying activities that are different from or unrelated to our core operations, are generally considered "Items Affecting Comparability." Examples of Items Affecting Comparability include, but are not limited to: temporary relief from landlords and government agencies; VAT deductions due to tax policy changes; and amortization of reacquired franchise rights recognized upon acquisitions. We believe presenting Core Operating Profit provides additional information to further enhance comparability of our operating results and we use this measure for purposes of evaluating the performance of our core operations. Core OP margin is defined as Core Operating Profit divided by Total revenues, excluding the impact of F/X.The following tables set forth the reconciliation of the most directly comparable GAAP financial measures to the non-GAAP financial measures. The reconciliation of GAAP Operating Profit to Restaurant Profit and Core Operating Profit by segment is presented in Segment Results within this release.

Quarter Ended
Year Ended

12/31/2025
12/31/2024
12/31/2025
12/31/2024

















Reconciliation of Operating Profit to Adjusted Operating Profit







Operating Profit
$              187
$             151
$       1,290
$       1,162Special Items, Operating Profit 
—
—
—
—Adjusted Operating Profit
$              187
$             151
$       1,290
$       1,162Reconciliation of Net Income to Adjusted Net Income







Net Income – Yum China Holdings, Inc.
$              140
$             115
$          929
$          911Special Items, Net Income –Yum China Holdings, Inc.
—
—
—
—Adjusted Net Income – Yum China Holdings, Inc.
$              140
$             115
$          929
$          911Reconciliation of EPS to Adjusted EPS







Basic Earnings Per Common Share
$             0.40
$            0.30
$         2.52
$         2.34Special Items, Basic Earnings Per Common Share
—
—
—
—Adjusted Basic Earnings Per Common Share
$             0.40
$            0.30
$         2.52
$         2.34Diluted Earnings Per Common Share
$             0.40
$            0.30
$         2.51
$         2.33Special Items, Diluted Earnings Per Common Share
—
—
—
—Adjusted Diluted Earnings Per Common Share
$             0.40
$            0.30
$         2.51
$         2.33Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate







Effective tax rate
27.0 %
27.6 %
27.2 %
26.7 %Impact on effective tax rate as a result of Special Items
—
—
—
—Adjusted effective tax rate
27.0 %
27.6 %
27.2 %
26.7 %  Net income, along with the reconciliation to Adjusted EBITDA, is presented below.


































Quarter Ended
Year Ended

12/31/2025
12/31/2024
12/31/2025
12/31/2024

















Net Income – Yum China Holdings, Inc.
$          140
$          115
$          929
$          911Net income – noncontrolling interests
13
11
75
69Equity in net (earnings) losses from equity method investments
(3)
(3)
(15)
(5)Income tax provision
56
47
369
356Interest income, net
(18)
(29)
(92)
(129)Investment (gain) loss
(1)
10
24
(40)Operating Profit
187
151
1,290
1,162Special Items, Operating Profit
—
—
—
—Adjusted Operating Profit
187
151
1,290
1,162Depreciation and amortization
114
121
448
476Store impairment charges
17
20
42
49Adjusted EBITDA
$          318
$          292
$       1,780
$       1,687  Operating Profit, along with the reconciliation to Core Operating Profit, is presented below:
























Quarter ended
% Change
Year Ended
% Change


12/31/2025
12/31/2024
B/(W)
12/31/2025
12/31/2024
B/(W)














Operating Profit
$         187
$         151
25
$         1,290
$       1,162
11
Special Items, Operating Profit 
—
—


—
—


Adjusted Operating Profit
$         187
$         151
25
$         1,290
$       1,162
11
Items Affecting Comparability
—
—


—
—


F/X impact
(2)
—


2
—


Core Operating Profit
$         185
$         151
23
$         1,292
$       1,162
11
Total revenues
2,823
2,595
9
11,797
11,303
4
F/X impact
(43)
—


(15)
—


Total revenues, excluding the impact of F/X
$       2,780
$       2,595
7
$       11,782
$     11,303
4
Core OP margin
6.6 %
5.8 %
0.8ppts11.0 %
10.3 %
0.7ppts.  Yum China Holdings, Inc.Segment Results(in US$ million)(unaudited)














Quarter Ended 12/31/2025

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalCompany sales
$       2,087
$          529
$                         11
$                 —
$              —
$       2,627Franchise fees and income
19
3
3
—
—
25Revenues from transactions with franchisees(2)
18
2
20
86
—
126Other revenues
1
6
225
19
(206)
45Total revenues
$       2,125
$          540
$                       259
$                105
$           (206)
$       2,823Company restaurant expenses
1,795
478
13
—
(1)
2,285General and administrative expenses
74
31
7
57
—
169Franchise expenses
8
1
—
—
—
9Expenses for transactions with franchisees(2)
14
1
19
86
—
120Other operating costs and expenses
—
6
218
19
(205)
38Closures and impairment expenses, net
11
3
1
—
—
15Total costs and expenses, net
1,902
520
258
162
(206)
2,636Operating Profit (Loss)
$          223
$            20
$                          1
$                (57)
$              —
$          187

























Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:










Quarter Ended 12/31/2025

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$          223
$            20
$                           1
$                (57)
$              —
$          187Less:











Franchise fees and income
19
3
3
—
—
25Revenues from transactions with franchisees(2)
18
2
20
86
—
126Other revenues
1
6
225
19
(206)
45Add:











General and administrative expenses
74
31
7
57
—
169Franchise expenses
8
1
—
—
—
9Expenses for transactions with franchisees(2)
14
1
19
86
—
120Other operating costs and expenses
—
6
218
19
(205)
38Closures and impairment expenses, net
11
3
1
—
—
15Restaurant profit (loss)
$          292
$            51
$                         (2)
$                 —
$                1
$          342Company sales
2,087
529
11
—
—
2,627Restaurant margin
14.0 %
9.9 %
(15.6) %
N/A
N/A
13.0 %

























Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:

Quarter Ended 12/31/2025

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$          223
$            20
$                          1
$                (57)
$              —
$          187Special Items, Operating Profit 
—
—
—
—
—
—Adjusted Operating Profit (Loss)
$          223
$            20
$                          1
$                (57)
$              —
$          187Items Affecting Comparability
—
—
—
—
—
—F/X impact
(3)
—
—
1
—
(2)Core Operating Profit (Loss)
$          220
$            20
$                          1
$                (56)
$              —
$          185














Quarter Ended 12/31/2024

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalCompany sales
$       1,923
$          500
$                        11
$                 —
$              —
$       2,434Franchise fees and income
16
2
4
—
—
22Revenues from transactions with franchisees(2)
14
1
16
70
—
101Other revenues
1
7
164
16
(150)
38Total revenues
$       1,954
$          510
$                      195
$                 86
$           (150)
$       2,595Company restaurant expenses
1,668
452
13
—
—
2,133General and administrative expenses
65
30
8
53
—
156Franchise expenses
7
1
—
—
—
8Expenses for transactions with franchisees(2)
13
1
15
69
—
98Other operating costs and expenses
1
6
159
16
(150)
32Closures and impairment expenses, net
8
6
3
—
—
17Total costs and expenses, net
1,762
496
198
138
(150)
2,444Operating Profit (Loss)
$          192
$            14
$                         (3)
$                (52)
$              —
$          151

























Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:

Quarter Ended 12/31/2024

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$          192
$            14
$                         (3)
$                (52)
$              —
$          151Less:











Franchise fees and income
16
2
4
—
—
22Revenues from transactions with franchisees(2)
14
1
16
70
—
101Other revenues
1
7
164
16
(150)
38Add:











General and administrative expenses
65
30
8
53
—
156Franchise expenses
7
1
—
—
—
8Expenses for transactions with franchisees(2)
13
1
15
69
—
98Other operating costs and expenses
1
6
159
16
(150)
32Closures and impairment expenses, net
8
6
3
—
—
17Restaurant profit (loss)
$          255
$            48
$                         (2)
$                 —
$              —
$          301Company sales
1,923
500
11
—
—
2,434Restaurant margin
13.3 %
9.3 %
(13.1) %
N/A
N/A
12.3 %

























Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:









Quarter Ended 12/31/2024

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$          192
$            14
$                         (3)
$                (52)
$              —
$          151Special Items, Operating Profit 
—
—
—
—
—
—Adjusted Operating Profit (Loss)
$          192
$            14
$                         (3)
$                (52)
$              —
$          151Items Affecting Comparability
—
—
—
—
—
—F/X impact
—
—
—
—
—
—Core Operating Profit (Loss)
$          192
$            14
$                         (3)
$                (52)
$              —
$          151














Year Ended 12/31/2025

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalCompany sales
$       8,717
$       2,282
$                        40
$                 —
$              —
$      11,039Franchise fees and income
81
10
13
—
—
104Revenues from transactions with franchisees(2)
69
7
79
347
—
502Other revenues
4
25
802
71
(750)
152Total revenues
$       8,871
$       2,324
$                      934
$                418
$           (750)
$      11,797Company restaurant expenses
7,203
1,990
45
—
(2)
9,236General and administrative expenses
260
110
30
181
—
581Franchise expenses
36
4
1
—
—
41Expenses for transactions with franchisees(2)
58
6
73
344
—
481Other operating costs and expenses
3
23
783
71
(748)
132Closures and impairment expenses, net
26
8
3
—
—
37Other income, net
—
—
—
(1)
—
(1)Total costs and expenses, net
7,586
2,141
935
595
(750)
10,507Operating Profit (Loss)
$       1,285
$          183
$                         (1)
$              (177)
$              —
$       1,290

























Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:

Year Ended 12/31/2025

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$       1,285
$          183
$                         (1)
$              (177)
$              —
$       1,290Less:











Franchise fees and income
81
10
13
—
—
104Revenues from transactions with franchisees(2)
69
7
79
347
—
502Other revenues
4
25
802
71
(750)
152Add:











General and administrative expenses
260
110
30
181
—
581Franchise expenses
36
4
1
—
—
41Expenses for transactions with franchisees(2)
58
6
73
344
—
481Other operating costs and expenses
3
23
783
71
(748)
132Closures and impairment expenses, net
26
8
3
—
—
37Other income, net
—
—
—
(1)
—
(1)Restaurant profit (loss)
$       1,514
$          292
$                         (5)
$                 —
$                2
$       1,803Company sales
8,717
2,282
40
—
—
11,039Restaurant margin
17.4 %
12.8 %
(13.7) %
N/A
N/A
16.3 %

























Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:





Year Ended 12/31/2025

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$       1,285
$          183
$                         (1)
$              (177)
$              —
$       1,290Special Items, Operating Profit 
—
—
—
—
—
—Adjusted Operating Profit (Loss)
$       1,285
$          183
$                         (1)
$              (177)
$              —
$       1,290Items Affecting Comparability
—
—
—
—
—
—F/X impact
—
1
—
1
—
2Core Operating Profit (Loss)
$       1,285
$          184
$                         (1)
$              (176)
$              —
$       1,292














Year Ended 12/31/2024

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalCompany sales
$       8,375
$       2,223
$                        53
$                 —
$              —
$      10,651Franchise fees and income
69
8
17
—
—
94Revenues from transactions with franchisees(2)
55
5
71
289
—
420Other revenues
10
24
648
64
(608)
138Total revenues
$       8,509
$       2,260
$                      789
$                353
$           (608)
$      11,303Company restaurant expenses
6,961
1,955
58
—
(2)
8,972General and administrative expenses
248
110
37
173
—
568Franchise expenses
32
4
1
—
—
37Expenses for transactions with franchisees(2)
49
4
65
286
—
404Other operating costs and expenses
8
22
635
63
(606)
122Closures and impairment expenses, net
19
12
8
—
—
39Other income, net
—
—
—
(1)
—
(1)Total costs and expenses, net
7,317
2,107
804
521
(608)
10,141Operating Profit (Loss)
$       1,192
$          153
$                       (15)
$              (168)
$              —
$       1,162

























Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:










Year Ended 12/31/2024

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$       1,192
$          153
$                       (15)
$              (168)
$              —
$       1,162Less:











Franchise fees and income
69
8
17
—
—
94Revenues from transactions with franchisees(2)
55
5
71
289
—
420Other revenues
10
24
648
64
(608)
138Add:











General and administrative expenses
248
110
37
173
—
568Franchise expenses
32
4
1
—
—
37Expenses for transactions with franchisees(2)
49
4
65
286
—
404Other operating costs and expenses
8
22
635
63
(606)
122Closures and impairment expenses, net
19
12
8
—
—
39Other income, net
—
—
—
(1)
—
(1)Restaurant profit (loss)
$       1,414
$          268
$                         (5)
$                 —
$                2
$       1,679Company sales
8,375
2,223
53
—
—
10,651Restaurant margin
16.9 %
12.0 %
(12.1) %
N/A
N/A
15.7 %

























Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:









Year Ended 12/31/2024

KFC
Pizza Hut
All Other Segments
Corporate
and
Unallocated(1)
Elimination
TotalGAAP Operating Profit (Loss)
$       1,192
$          153
$                       (15)
$              (168)
$              —
$       1,162Special Items, Operating Profit 
—
—
—
—
—
—Adjusted Operating Profit (Loss)
$       1,192
$          153
$                       (15)
$              (168)
$              —
$       1,162Items Affecting Comparability
—
—
—
—
—
—F/X impact
—
—
—
—
—
—Core Operating Profit (Loss)
$       1,192
$          153
$                       (15)
$              (168)
$              —
$       1,162












The above tables reconcile segment information, which is based on management responsibility, with our Condensed Consolidated Statements
of Income.  


(1) Amounts have not been allocated to any segment for purpose of making operating decision or assessing financial performance as the
transactions are deemed corporate revenues and expenses in nature.(2) Primarily includes revenues and associated expenses of transactions with franchisees derived from the Company's central procurement
model whereby the Company centrally purchases substantially all food and paper products from suppliers and then sells and delivers to
KFC and Pizza Hut restaurants, including franchisees.  



View original content:https://www.prnewswire.com/news-releases/yum-china-reports-fourth-quarter-2025-results-302678701.htmlSOURCE Yum China Holdings, Inc.

Original: Yum China Reports Fourth Quarter 2025 Results

Yum China Announces US$460 Million Share Repurchase Agreements for First Half of 2026 as Part of US$1.5 Billion Full-Year Capital Return Plan

December 12 2025 - 5:20AM
PR Newswire (US)

SHANGHAI, Dec. 12, 2025 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) announced that it has entered into share repurchase agreements in the U.S. and Hong Kong for an aggregate repurchase amount of approximately US$460 million for the first half of 2026, commencing on January 12, 2026.

The share repurchase agreements include approximately US$350 million under the Rule 10b5-1 of the United States Securities Exchange Act of 1934 in the U.S. and approximately HK$880 million for a similar program in Hong Kong. These agreements are one component of the share repurchase program, and part of the broader plan to return US$1.5 billion to shareholders through dividends and share repurchases in 2026. This annual amount of capital return is equivalent to around 9% of our market capitalization as of December 11, 2025.

"Yum China is committed to maintaining a dual focus: investing to drive business growth and delivering favorable capital returns to shareholders. Supported by a healthy cash position and strong cash-generation capabilities, we are on track to return US$4.5 billion to shareholders from 2024 through 2026. Starting in 2027, as outlined at our 2025 Investor Day, we plan to return approximately 100% of annual free cash flow after subsidiaries' dividend payments to non-controlling interests," said Joey Wat, CEO of Yum China.

The average annual return in 2027 and 2028 is expected to be approximately US$900 million to over US$1 billion, and to exceed US$1 billion in 2028, through steadily increasing dividend per share over time and value-enhancing share repurchases.

Since 2017, Yum China has returned US$5.8 billion to shareholders through dividends and share repurchases.


About Yum China Holdings, Inc.

Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 17,000 restaurants under six brands across over 2,500 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain, which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit https://ir.yumchina.com/.

https://investorshub.advfn.com/stock-market/NYSE/yum-china-YUMC/stock-news/97430271/yum-china-announces-us-460-million-share-repurchas

Yum China Expands Share Repurchase Authorization by US$1 Billion

December 11 2025 - 11:14PM
PR Newswire (US)

SHANGHAI, Dec. 11, 2025 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) announced today that its Board of Directors (the "Board") has increased the Company's share repurchase authorization by US$1 billion to an aggregate of US$5.4 billion.

From 2017 to December 11, 2025, the Company repurchased approximately 97.7 million shares of common stock for US$4.2 billion. This increase brings the total remaining authorization to approximately US$1.2 billion.

Yum China may repurchase shares under this authorization from time to time in the open market or, subject to applicable regulatory requirements, through privately negotiated transactions, block trades, accelerated share repurchase transactions and the use of Rule 10b5-1 trading plans. The authorization has no expiration date.

https://investorshub.advfn.com/stock-market/NYSE/yum-china-YUMC/stock-news/97427095/yum-china-expands-share-repurchase-authorization-b

Yum China Unveils "RGM 3.0" Strategy and Three-Year Financial Outlook at 2025 Investor Day

November 16 2025 - 11:30PM
PR Newswire (US)

3-Year CAGR Targets[1]: High-Single-Digit Operating Profit[2], Double-Digit Diluted EPS[3] and Double-Digit Free Cash Flow Per Share[4]

On Track to Reach 20,000 Stores by 2026, and Accelerating to over 30,000 Stores by 2030

Front-end Diversification, Back-end Consolidation to Unlock Synergies In and Across Stores, Regions and Even Brands

SHANGHAI, Nov. 16, 2025 /PRNewswire/ -- Yum China Holdings, Inc. (NYSE: YUMC and HKEX: 9987, "Yum China" or the "Company") hosted its 2025 Investor Day today in Shenzhen, China. At the event, Yum China's CEO Joey Wat, CFO Adrian Ding, and members of the senior management team highlighted the Company's strategic initiatives to accelerate network expansion, drive sales growth, and enhance profitability. A webcast replay and presentations will be available at http://ir.yumchina.com.

Joey Wat, CEO of Yum China, commented, "Over the past 38 years, Yum China has maintained market leadership and consistently delivered solid growth amid dynamic market conditions. In recent years, guided by our RGM ("Resilience, Growth and Moat") strategy, we have significantly transformed our operations, strengthened core competencies and built a strong foundation for future expansion. RGM 3.0 focused on all three aspects – resilience, growth and moat – powered by two complementary forces, innovation and operational efficiency. On the front end, we are innovating new modules and offerings to cater to a wide range of customer segments and occasions. On the back end, we are consolidating our resources to unlock synergies in and across stores, regions and even brands."

Wat continued, "As a result, despite our significant scale, store expansion is accelerating. It took us 33 years to reach our first 10,000 stores, and we now aim to double that in just six years by 2026 and exceed 30,000 stores within the following four years by 2030. Our innovative and flexible store formats, together with a hybrid model of both equity stores and franchise stores, will enable deeper and faster market penetration. As we continue to grow, we remain committed to returning capital to shareholders, with a target to return approximately 100% of free cash flow after dividend payments to non-controlling interests of our subsidiaries, starting from 2027. With tremendous growth opportunities ahead, we are confident in achieving our targets and delivering sustainable shareholder value."

Yum China 2025 Investor Day Highlights:

KFC: Leading, Resilient, and Growing – 2028 Operating Profit Expected to Surpass RMB 10 billion

After 38 years in China, KFC continues to reach new heights, powered by its trusted brand, diverse offerings, extensive footprint and resilient operations. Already operating more than 12,600 stores in over 2,500 cities, KFC is leveraging flexible store formats and an accelerated franchise strategy to add density in higher-tier cities and unlock access to over 2,000 lower-tier cities and thousands more locations in strategic channels. By 2028, KFC aims to increase the total store count by one-third to over 17,000 and deliver mid- to high-single-digit CAGR in system sales over 2026-2028, with operating profit surpassing RMB 10 billion in 2028.

Growth also lies in new customer segments and occasions. While KFC's hero products remain its core growth drivers, we continue to innovate and explore new categories and store modules. By sharing KFC's in-store resources and membership programs, KCOFFEE cafes and KPRO deliver incremental sales and profit and broaden our addressable market. Last but not least, customer engagement is KFC's core. With our membership programs, integrated digital ecosystem and dedicated teams, we are elevating customer experiences and fostering loyalty.

Pizza Hut: From Inflection to Acceleration – Expected to Double Operating Profit by 2029 versus 2024

Pizza Hut has undergone a significant transformation, enhancing its value-for-money proposition and delivering three consecutive quarters of 17% same-store transaction growth alongside six straight quarters of year-over-year margin expansion. The brand is on track to accelerate growth. With around 1,000 cities already covered, Pizza Hut has substantial room to grow into over 1,500 cities where KFC operates but Pizza Hut does not. Building on our current base of 4,000 stores, we plan to add over 600 net new stores annually over the next three years, including a step up in franchise mix, bringing the total to more than 6,000 stores by 2028. To penetrate into lower-tier cities, Pizza Hut will leverage innovative models such as WOW, which features lower capex and streamlined operations. On menu innovation, while reinforcing our leadership in pizzas, we are driving strong growth in newer categories such as burgers and one-person meals to tap into additional customer segments and occasions. On operations, we continue to enhance efficiency and customer experience. Together, these initiatives aim to expand restaurant margin and double Pizza Hut's operating profit by 2029, compared with 2024 levels.

Lavazza: Entering the Next Phase of Growth

Lavazza has made meaningful progress, optimizing store models, improving store economics and expanding both its coffee shop and retail businesses. Same-store sales grew double-digits in Q3 2025, and its latest Light Store Model shows healthy margins. Leveraging its Italian heritage and coffee mastery, Lavazza blends authenticity with local innovation – from premium KAFA beans to buffalo milk latte and dessert-inspired drinks – tailored to Chinese tastes. Meanwhile, we are increasing local roasting capacity to support menu innovation and enriching food lineup to drive further growth. In retail, we continue to broaden both product ranges and distribution channels, spanning online to offline touchpoints. After five years of building its foundation, Lavazza is poised to accelerate growth. With significant runway in China's fast-growing coffee market, Lavazza targets 1,000 coffee shops and $60 million in retail sales by 2029, capturing substantial opportunities ahead.

Digitalization: Embracing Agentic AI

Through continuous innovation and evolution, Yum China has developed industry-leading digital capabilities that serve as a powerful competitive moat. Since 2019, we have been integrating AI into our operations. We began exploring Generative AI in 2023. Today, we have deployed several dozen applications to enhance customer experience, strengthen food safety and improve operational efficiency. Looking ahead, we are ready to embrace the next era of agentic AI – enabling proactive system-human interaction, multi-agent coordination, and data-driven decision making. This includes our pilot Q-Smart, the AI-enabled assistant for restaurant general managers. Additional applications powered by agentic AI are in the pipeline.

Supply Chain: Driving Synergies and Efficiency

Ymore than 1,600 or upgradedOLooking ahead, where opportunities arise, we plan to develop integrated supply chain parks in partnership with our suppliers to further enhance synergies and drive greater operational efficiency. Food safety remains our top priority, and we continue to invest in AI-powered solutions to enhance monitoring, traceability, and risk prevention across the supply chain. Together, these efforts reinforce Yum China's competitive moat and position the Company to capture future growth opportunities.

Empowering RGMs, Supporting Growth

Our restaurant general managers (RGMs) are trusted frontline leaders who drive execution and operational excellence. The RGM No.1 principle reflects our commitment to caring for and empowering our teams. Mega RGMs, who manage multiple stores, have played a pivotal role in accelerating Yum China's store expansion. We are transforming the way we support them. By streamlining, centralizing and automating select processes, RGMs can focus on what matters most: food safety, customer service and team development. Looking ahead, we will continue to engage, empower and equip our frontline teams to fuel sustainable business growth.

Delivering Results and Creating Long-Term Shareholder Value

The Company sets the following financial targets:

2025 full year outlook:
OP margin[5]: 10.8%-10.9%
Restaurant margin: 16.2%-16.3% for Yum China, around 17.3% for KFC and around 12.7% for Pizza Hut
Free cash flow per share[4]: $2.2 to $2.3
Growth targets from 2026 to 2028, compared to the 2025 base year:
Same-store sales index of 100 to 102 YoY
Mid- to high-single-digit CAGR for system sales[6]
High-single-digit CAGR for operating profit[2]
Double-digit CAGR for Diluted EPS[3]
Double-digit CAGR for free cash flow per share
Growth targets by 2028:
Total stores to exceed 25,000
OP margin: at least 11.5% for Yum China
Restaurant margin: at least 16.7% for Yum China, at least 17.3% for KFC and at least 14.5% for Pizza Hut
Average annual capital expenditure of approximately $600 million to $700 million from 2026 to 2028

Yum China, with a commitment for favorable capital returns to shareholders, is on track to return $1.5 billion each year from 2024 to 2026. Beginning in 2027, the Company plans to return approximately 100% of annual free cash flow after subsidiaries' dividend payments to non-controlling interests. This is anticipated to translate into an average annual return of approximately $900 million to over $1 billion in 2027 and 2028, and to exceed $1 billion in 2028. The Company is confident in its ability to deliver sustainable, long-term value for shareholders.

https://investorshub.advfn.com/stock-market/NYSE/yum-china-YUMC/stock-news/97244083/yum-china-unveils-rgm-3-0-strategy-and-three-ye

Yum China Announces Plan for Approximately US$270 million in Additional Share Repurchases for 2025
September 03 2025 - 6:00AM

SHANGHAI, Sept. 3, 2025 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) announced that it plans to repurchase approximately an additional US$270 million of its common stock during the remainder of 2025 in the open market, subject to market and other conditions. This repurchase program is expected to commence on September 3, 2025, and is in addition to the previously announced US$510 million share repurchase agreements for the second half of the year, as well as the US$356 million share repurchases completed in the first half of 2025.

Assuming a quarterly dividend of US$0.24 per share, the Company is now expected to return a total of approximately US$1.5 billion to shareholders in 2025, comprising approximately US$360 million in dividends and approximately US$1.14 billion in share repurchases.

"The expanded share repurchase program for 2025 is designed to provide flexibility to repurchase shares in the open market from time to time, with the goal of enhancing long-term shareholder value. It reflects our confidence in our growth prospects and our ability to generate strong free cash flow. As we continue to return capital to shareholders through dividends and share repurchases, we remain committed to investing in our businesses to create value both now and in the long term," said Joey Wat, CEO of Yum China.

Yum China is on track to return US$3 billion to shareholders through dividends and share repurchases from 2025 to 2026, in addition to the US$1.5 billion delivered in 2024. The average annual amount of capital return over the three years is around 9% of Yum China's market capitalization as of September 2, 2025.

From 2017 to September 2, 2025, Yum China has returned US$5.2 billion to shareholders through dividends and share repurchases.

About Yum China Holdings, Inc.

Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 16,000 restaurants under six brands across over 2,400 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain, which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit https://ir.yumchina.com/.

US Tariff War:

A high-end shopping mall in #Wuhan #武汉 Almost devoid of shoppers on a Sunday afternoon. The few people wandering around are shop employees #China #TradeWar #tariffs #US pic.twitter.com/tY7LcipxPJ— AC (@AEHRC) May 2, 2025 $YUMC China Tariffs Retail Shopping Mall

Yum Stock China's Growth Potential: A Deep Dive