Yum China Reports Strong Growth and Dividend Hike

Yum China Reports Strong Growth and Dividend Hike

Yum China Holdings ( (YUMC) ) has released its Q4 earnings. Here is a breakdown of the information Yum China Holdings presented to its investors.

Yum China Holdings operates over 16,000 restaurants across China, primarily under the KFC and Pizza Hut brands, in the quick-service and casual dining sectors. The company is known for its strong digital capabilities and extensive logistics network.

Yum China Holdings recently announced a robust fourth quarter, driven by a 36% increase in operating profit and record-high revenues of $2.6 billion. The company also declared a significant 50% increase in dividends, highlighting its commitment to returning capital to shareholders.

Key financial highlights include a 4% year-over-year growth in total system sales and a 15.7% restaurant margin for the full year. The company opened 1,751 new stores in 2024, bringing the total to 16,395. Digital sales reached $9.6 billion, accounting for 90% of total company sales.

Looking ahead, Yum China remains optimistic about growth prospects in China, aiming for 20,000 stores by 2026. The company plans to return $3 billion to shareholders by 2026 and expects an increase in its franchise mix, leveraging its strengths to create sustainable long-term value.

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