Yum China reports 3Q total revenues of $3.2 billion, up 4% YoY

SHANGHAI, China – Yum China Holdings, Inc. (the “Company” or “Yum China”) (NYSE: YUMC and HKEX: 9987) reported unaudited results for the third quarter ended September 30, 2025. Total system sales grew 4% year over year (“YoY”), excluding foreign currency translation (“F/X”). The growth was primarily attributable to 4% of net new unit contribution and 1% same-store sales growth.

Same-store sales grew 1% YoY. Same-store transactions grew 4% YoY, the eleventh consecutive quarter of growth.

Total revenues increased 4% YoY to $3.2 billion, also a 4% increase excluding F/X.

Third Quarter Highlights:

• Opened 536 net new stores in the quarter and 1,119 in the first nine months, of which 32% and 29% were opened by franchisees, respectively.
• Total store count reached 17,514 as of September 30, 2025, including 12,640 KFC stores and 4,022 Pizza Hut stores.
• Operating profit grew 8% YoY to $400 million. Core operating profit grew 8% YoY.
• OP margin was 12.5%, an increase of 40 basis points YoY, supported by restaurant margin expansion.
• Restaurant margin was 17.3%, an increase of 30 basis points YoY, driven primarily by savings in Food and Paper cost and Occupancy and Other Operating expenses.
• Diluted EPS decreased 1% YoY to $0.76, also down 1% excluding F/X, but would have increased 11% YoY excluding the negative impact of $0.09 from the mark-to-market equity investments in the 2025 and 2024 third quarters and F/X.
• Returned $414 million to shareholders in the third quarter through $326 million in share repurchases and $88 million in cash dividends. In the first nine months of 2025, the Company returned $950 million to shareholders.
• Delivery sales grew 32% YoY. Delivery contributed approximately 51% of total Company sales.
• Digital sales reached $2.8 billion, with digital ordering accounting for approximately 95% of total Company sales.
• Total KFC and Pizza Hut membership exceeded 575 million, up 13% YoY. Member sales accounted for approximately 57% of KFC and Pizza Hut’s system sales in aggregate.

Joey Wat, CEO of Yum China, commented, “We delivered another solid quarter in a dynamic market – accelerating store openings, achieving positive same–store sales growth, and expanding margins. Delivering across all three dimensions was no easy task. It reflected the effectiveness of our dual focus on innovation and operational efficiency. KFC grew at its fastest store–opening pace year–to–date, while Pizza Hut has accelerated expansion, surpassing the 4,000–store milestone in the quarter. Our flexible store formats, together with our franchise strategy, enable faster market entry with lower investment.”

Wat continued, “We are driving strong growth in our hero products while expanding into new growth drivers. At KFC, we expanded our wing lineup with Crackling Golden Chicken Wings, complementing our flagship New Orleans Roasted Wings and Hot Wings, cementing wings as one of our hero categories. During the promotion, sales of the new wings surged, matching the popularity of our flagship roasted wings. At Pizza Hut, our new hand–crafted thin–crust pizza earned rave reviews, drove promising repeat purchases and quickly became our best–selling crust.”

Wat concluded, “On the front end, our multi-brand portfolio, diverse store modules and offerings cater to a wide range of customer segments and occasions. On the back end, we are fostering even greater synergies by sharing and consolidating resources in and across stores and regions to enhance efficiency.

KCOFFEE cafes now exceed 1,800 locations, well above our initial plan. KPRO, focused on energy bowls and superfood smoothies, has grown to over 100 locations in higher-tier cities. By sharing in-store resources and KFC membership programs, we scaled these modules quickly and delivered incremental sales and profit. Building on our core competencies, our established RGM (“Resilience, Growth and Moat”) strategy and the steadfast execution of our teams, we are confident in our growth potential and look forward to sharing more at our upcoming investor day.”