Yum China Holdings ( (YUMC) ) has released its Q2 earnings. Here is a breakdown of the information Yum China Holdings presented to its investors.
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Yum China Holdings, Inc. is the largest restaurant company in China, operating over 16,000 restaurants under several brands, including KFC and Pizza Hut, in the quick-service and casual dining sectors. The company leverages strong digital capabilities and a loyalty program to enhance customer service and experience.
Yum China reported a strong second quarter in 2025, with a 14% increase in operating profit and a record high operating profit margin of 10.9%. The company saw positive same-store sales growth, marking the tenth consecutive quarter of same-store transaction growth, and a 5% increase in diluted EPS.
Key financial highlights include a 4% year-over-year growth in total system sales and revenues, reaching $2.8 billion. The company opened 336 net new stores, bringing the total store count to 16,978. Delivery sales grew by 22%, contributing to 45% of total sales, while digital sales accounted for 94% of total sales. The company also returned $274 million to shareholders through share repurchases and dividends.
Looking ahead, Yum China plans to open 1,600 to 1,800 net new stores in 2025, with a focus on increasing the franchise mix for KFC and Pizza Hut. The company aims to return $3 billion to shareholders by 2026 and continues to enhance its digital and delivery capabilities to drive sustainable, long-term value for shareholders.