#China #Shanghai #Pizza Hut #Yum China #KFC

Yum China Delivers Impressive Q4 Results for 2025

Yum China Holdings, Inc. has unveiled its fourth-quarter results for 2025, showcasing an impressive performance that underscores the company's robust growth trajectory in the highly competitive restaurant sector. The company, which operates iconic brands like KFC and Pizza Hut, has reported significant increases across multiple financial metrics.

Key Highlights of the Fourth Quarter 2025

In the fourth quarter, Yum China's total system sales climbed 7% year-over-year (YoY) when adjusted for foreign currency translation. Notably, same-store sales rose 3%, marking the third consecutive quarter of growth in this category. The company recorded total revenues of $2.8 billion, representing a 9% increase YoY.

Additionally, the net increase of 587 new stores set a quarterly record, with 36% being opened by franchisees, reflecting the strength of Yum China's franchise model. Operating profit swelled by 25% to $187 million, positioning the operating profit margin at 6.6%—an 80 basis point increase compared to the prior year.

Delivery Sales Drive Growth

The surge in delivery sales, which grew 34% YoY, significantly contributed to total sales, with delivery now accounting for approximately 53% of Yum China's overall sales. This shift towards delivery is attributed to changing consumer preferences that have been accelerated by the pandemic.

In terms of earnings, diluted earnings per share (EPS) increased by 33% to $0.40, reflecting strong operational efficiency and revenue growth.

Full Year Performance

The year 2025 was marked by solid results for Yum China, with total system sales growing 4% YoY. The company reported an annual operating profit of $1.3 billion, an 11% increase from the previous year, with a consistent operating profit margin of 10.9%.

In 2025, Yum China’s store count increased by 1,706, amounting to a total of 18,101 stores across its brands as of December 31, 2025. The continued expansion aligns with the company’s strategy, which aims to have over 20,000 stores in operation by 2026 and more than 30,000 by the end of 2030.

Dividend and Shareholder Returns

Yum China is on track to return $1.5 billion to shareholders in 2026, with an increase of 21% in cash dividends, raising it to $0.29 per share. This announcement reaffirms the company’s commitment to delivering value to its investors while simultaneously investing in growth initiatives.

CEO Insights

Joey Wat, CEO of Yum China, expressed pride in the company’s performance, stating, "Our strong results display our team's dedication to driving growth in same-store transactions and system sales. We have successfully diversified our offerings to meet the evolving preferences of customers, especially through delivery services."

Future Outlook

Looking ahead, Yum China anticipates further growth, fueled by continued consumer demand and expansion into lower-tier cities. The company is committed to pursuing its RGM 3.0 strategy focused on operational innovation and efficiency.

With a strong foundation in place, Yum China is poised to maintain momentum as it navigates the complexities of the food service industry, leveraging its position as the largest restaurant operator in China.

In summary, the robust fourth-quarter performance encapsulates another successful year for Yum China, underpinned by strategic growth initiatives, a responsive delivery model, and a strong financial outlook that promises value for both customers and shareholders in the years to come.