Yum China (YUMC) investor relations material

Executive summary

• Q2 2025 revenues increased 4% year-over-year to $2.79B, with operating profit up 14% to $304M and net income up 1% to $215M; OP margin reached a record 10.9%.

• Same-store sales growth turned positive at 1%, and system sales grew 4% year-over-year, with KFC and Pizza Hut maintaining leading positions.

• 336 net new stores opened in Q2, bringing the total to 16,978 as of June 30, 2025, a 10% increase from the previous year.

• Digital and delivery sales remained strong, with digital sales exceeding $5B in H1 and delivery sales up 17% year-over-year, now 45% of total sales.

• Diluted EPS was $0.58, up 5% year-over-year or 15% excluding mark-to-market and F/X impacts.

Financial highlights

• Q2 2025 revenues: $2.79B (+4% YoY); operating profit: $304M (+14% YoY); net income: $215M (+1% YoY); OP margin: 10.9% (up 1 pt YoY).

• Restaurant margin improved to 16.1%, up 60 basis points year-over-year.

• Returned $536M to shareholders in H1, including $356M in share repurchases and $180M in dividends.

• Cash flows from operations increased to $864M for H1 2025; cash and equivalents at $592M as of June 30, 2025.

• Adjusted EBITDA for Q2 was $427M, up from $399M a year ago.

Outlook and guidance

• Targeting 1,600–1,800 net new stores in 2025 and 20,000 stores by 2026.

• Capital expenditures revised down to $600M–$700M for 2025.

• Plans to return $3B to shareholders in 2025–2026, with at least $1.2B in 2025.

• Franchise mix of net new stores expected to reach 40–50% for KFC and 20–30% for Pizza Hut in 2025.

• Expect restaurant and core OP margin to moderately improve for full year 2025.