Yum China (YUMC) Q3 2025 earnings summary

Executive summary

• Q3 2025 operating profit rose 8% year-over-year to $400 million, with system sales up 4% and same-store sales up 1%, driven by accelerated store expansion and margin improvement.

• Total revenues for Q3 2025 increased 4% year-over-year to $3.21 billion, with digital sales exceeding $8 billion year-to-date and membership surpassing 575 million, up 13% year-over-year.

• Opened 536 net new stores in Q3, bringing the total to 17,514, with franchisees opening 32% of new stores and on track for 20,000 by end of 2026.

• Delivery sales accounted for 51% of total sales in Q3, up from 40% last year, and digital sales represented 95% of total sales.

• Continued focus on innovation, operational efficiency, and menu development, driving transaction growth and customer engagement.

Financial highlights

• Q3 2025 revenue was $3.21 billion, up 4% year-over-year; operating profit margin improved to 12.5%.

• Restaurant margin reached 17.3%, up 30 basis points year-over-year.

• Net income was $282 million, down 5% year-over-year; diluted EPS was $0.76, down 1% year-over-year.

• Adjusted EBITDA for the quarter was $520 million, up from $501 million a year ago.

• Cash and cash equivalents at quarter-end were $648 million.

Outlook and guidance

• Targeting 1,600–1,800 net new stores in 2025, with franchise mix expected at 40%-50% for KFC and 20%-30% for Pizza Hut.

• 2025 CapEx target is $600–$700 million, focused on store expansion, remodeling, and digital investments.

• Plans to return $1.5 billion to shareholders in 2025 through dividends and share repurchases.

• Expect mid-single-digit system sales growth and moderately improved margins for the full year.

• Q4 same-store sales growth targeted at similar levels to Q3; focus on achieving 12th consecutive quarter of positive same-store transaction growth.