Yum China (YUMC) Q4 2025 earnings summary

Executive summary

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

• System sales grew 7% in Q4 2025, with same-store sales up 3% and operating profit up 25% year-over-year.

• Full year 2025 revenue increased 4%, operating profit rose 11% to $1.3 billion, and diluted EPS was $2.51, up 8%.

• 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 2025 revenues rose 9% year-over-year to $2.8 billion; full year revenues up 4% to $11.8 billion.

• System sales grew 4% for the full year and 7% in Q4; same-store sales up 1% for the year and 3% in Q4.

• Restaurant margin was 16.3% for the year, up 60 bps; Q4 margin was 13.0%, up 70 bps.

• Q4 operating profit reached $187 million (+25% YoY); full year $1.3 billion (+11% YoY); Q4 diluted EPS $0.40 (+33% YoY).

• Free cash flow was $840 million, up 18% year-over-year; ended 2025 with $2.0 billion net cash.

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.

• Expecting mid to high single-digit system sales growth, high single-digit operating profit growth, and double-digit EPS growth in 2026.

• Restaurant and operating profit margins expected to slightly improve year-over-year.

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

• Plan to return nearly 100% of annual free cash flow to shareholders starting 2027.