SHANGHAI, China – Yum China Holdings, Inc. reported unaudited results for the fourth quarter and year ended December 31, 2024, showing record 2024 results with total revenues of over $11 billion, 1,751 net new stores and $1.5 billion capital returned to shareholders. Yum China is the largest restaurant company in China.
The Company operates over 16,000 restaurants under six brands across over 2,200 cities. 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 the country.
Yum China Holdings: Fourth Quarter Highlights
- Total system sales grew 4% year over year (“YoY”), excluding foreign currency translation (“F/X”). The growth was primarily attributable to 5% of net new unit contribution.
- Same-store sales reached 99% of the prior year’s level and improved sequentially from 97% in the third quarter. Same-store transactions grew 4% YoY, the eighth consecutive quarter of growth.
- Total revenues increased 4% YoY to $2.6 billion, a record-high for the fourth quarter (a 4% increase excluding F/X).
- The Company opened 534 net new stores and reached 16,395 stores as of December 31, 2024.
- Operating profit grew 36% YoY to $151 million. Core operating profit grew 35% YoY.
- OP margin was 5.8%, an increase of 140 basis points YoY, supported by restaurant margin expansion.
- Restaurant margin was 12.3%, an increase of 160 basis points YoY. Excluding $6 million in items affecting comparability, restaurant margin increased 180 basis points YoY, driven primarily by improved operational efficiencies.
- Diluted EPS increased 30% YoY to $0.30, or up 27% YoY excluding F/X. Excluding the impact of $0.01 from F/X and the mark-to-market equity investments in the fourth quarters of 2024 and 2023, Diluted EPS increased 20% YoY.
Full Year Highlights
- Total system sales grew 5% year over year, excluding F/X. The growth was primarily attributable to 7% of net new unit contribution. Same-store sales reached 97% of the prior year’s level for the year.
- Total revenues increased 3% YoY to $11.3 billion, a record level since the spin-off. Excluding F/X, total revenues would have been $200 million higher, or a 5% increase YoY.
- Store count increased 12%, or 1,751 net new stores, with 512 net new stores, or 29% opened by franchisees.
- Delivery sales grew 14% YoY, maintaining the double-digit annual growth Yum China has sustained over the past decade. Delivery contributed approximately 39% of KFC and Pizza Hut’s Company sales.
- Operating profit grew 5% YoY to $1.2 billion. Core operating profit grew 12% YoY.
- OP margin was 10.3%, up 20 basis points YoY, supported by resilient restaurant margins and savings in G&A expenses.
- Restaurant margin was 15.7%. Excluding $60 million in items affecting comparability, restaurant margin was flat YoY.
- Diluted EPS increased 18% YoY to $2.33, a record-high for the year, or up 22% YoY excluding F/X. Excluding the impact of $0.11 from F/X and the mark-to-market equity investments, Diluted EPS increased 12% YoY.
- Returned $1.5 billion to shareholders in 2024 through $248 million in cash dividends and $1.24 billion in share repurchases, representing approximately 8% of outstanding shares as of December 31, 2023.
- Digital sales4 reached $9.6 billion, with digital ordering accounting for approximately 90% of total Company sales.
- Total membership of KFC and Pizza Hut exceeded 525 million, up 11% versus the prior year. Member sales accounted for approximately 65% of KFC and Pizza Hut’s system sales in aggregate.
Joey Wat, CEO of Yum China, commented, “We closed the year with a strong fourth quarter, propelling us to a number of record highs in 2024. In the fourth quarter, our system sales growth surpassed the restaurant industry’s growth rate.
Our same-store sales index improved sequentially to 99% of prior year levels, driven by the eighth consecutive quarter of same-store transaction growth. OP margin expanded by 140 basis points, and restaurant margin increased by 160 basis points, both on a year-over-year basis. We have steadily improved our metrics since the second quarter, with improvement in same-store sales index, margins, and operating profit growth each quarter.
These results demonstrate the resilience of our business and the effectiveness of our strategy in improving sales and profitability amid challenging market conditions.”
