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SHANGHAI, China – Yum China Holdings, Inc. reported unaudited results for the second quarter ended June 30, 2025. Total system sales grew 4% year over year (“YoY”), excluding foreign currency translation (“F/X”). The growth sequentially improved from the first quarter and was primarily attributable to 4% of net new unit contribution and 1% same-store sales growth.
Same-store sales growth turned positive at 1%. Same-store transactions grew 2% YoY, the tenth consecutive quarter of growth.
Total revenues increased 4% YoY to $2.8 billion, also a 4% increase excluding F/X.
The Company opened 336 net new stores in the quarter, with 89 net new stores opened by franchisees, accounting for 26%.
Total store count reached 16,978 as of June 30, 2025, including 12,238 KFC stores and 3,864 Pizza Hut stores.
Operating profit grew 14% YoY to $304 million, a second-quarter record high. Core operating profit grew 14% YoY.
OP margin was 10.9%, an increase of 100 basis points YoY and also record high for the second quarter, supported by restaurant margin expansion and G&A savings.
Restaurant margin was 16.1%, an increase of 60 basis points YoY, driven primarily by savings in Food and Paper cost and Occupancy and Other Operating expenses.
Diluted EPS increased 5% YoY to $0.58, another second-quarter record-high, also a 5% increase excluding F/X. Excluding the negative impact of $0.04 from the mark-to-market equity investments in the 2025 and 2024 second quarters and F/X, Diluted EPS increased 15% YoY.
Returned $274 million to shareholders in the second quarter through $184 million in share repurchases and $90 million in cash dividends.
Delivery sales grew 22% YoY. Delivery contributed approximately 45% of total Company sales.
Digital sales reached $2.4 billion, with digital ordering accounting for approximately 94% of total Company sales.
Total membership of KFC and Pizza Hut was approximately 560 million, up 13% versus the prior year. Member sales accounted for approximately 64% of KFC and Pizza Hut’s system sales in aggregate.
Joey Wat, CEO of Yum China, commented, “I am pleased to announce that we achieved solid results in the second quarter. We turned same-store sales growth positive while expanding our store portfolio to nearly 17,000 locations. We delivered double-digit growth in operating profit and substantially expanded our margins. KFC stayed resilient and Pizza Hut sustained its momentum.
We are always exploring ways to broaden our addressable market. KFC has expanded KCOFFEE cafes to over 1,300 locations, leveraging KFC’s store space, various in-store resources and membership. Pizza Hut’s new menu has widened our price ranges, reaching previously underserved customer segments and contributing to double-digit same-store transactions growth for the quarter.”
