Yum China (YUMC) Q4 2025 earnings summary

Executive summary

• Opened 1,706 net new stores in 2025, reaching 18,101 total locations across 2,500+ cities, with a target of over 20,000 stores by 2026.

• Q4 2025 system sales grew 7% year-over-year, with operating profit up 25% and revenue up 9%.

• Full year 2025 operating profit rose 11% to $1.3 billion, with revenue up 4%.

• Digital sales and membership base expanded, with over 590 million members and digital sales up 8% year-over-year.

• Returned $1.5 billion to shareholders in 2025 via dividends and share repurchases, with a 21% dividend increase announced.

Financial highlights

• Q4 system sales grew 7% year-over-year; same-store sales up 3%; Q4 operating profit margin 6.6% (+0.8 ppts YoY).

• Q4 diluted EPS $0.40, up 33% year-over-year; Q4 net income $140 million, up 24%.

• Full year system sales grew 4%, same-store sales up 1%, restaurant margin 16.3%.

• Free cash flow in 2025: $840 million, up 18% year-over-year; net cash at year-end: $2.0 billion.

• ROIC improved to 17.3% in 2025.

Outlook and guidance

• Targeting over 20,000 stores in 2026 and more than 30,000 by 2030, with 1,900+ net new openings and 40%-50% franchise mix.

• 2026-2028 guidance: mid to high single-digit system sales growth, high single-digit OP growth, double-digit EPS growth, and slight margin improvements.

• Committed to returning $1.5 billion to shareholders annually through 2026; quarterly dividend raised by 21%.

• From 2027, plan to return nearly 100% of annual free cash flow after subsidiary dividends.