Yum China Holdings (YUMC)
NYSE:YUMC
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Earnings Data
Report Date
Jul 23, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.67Last Year’s EPS
0.58Same Quarter Last Year
Strong Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a broadly positive operational and financial update: record operating profit, meaningful store expansion, strong KFC and Pizza Hut momentum (including improved Pizza Hut margins), rapid scaling of modular additions (KCOFFEE and KPRO), and aggressive shareholder returns. Key challenges remain around elevated delivery mix and rider costs, higher labor and packaging-driven cost of sales, and near-term softness in March/seasonal timing that left same-store sales effectively flat. Management provided conservative near-term margin guidance but expressed confidence in margin recovery in the second half and reiterated full-year targets. Overall, the positives (record profit, growth initiatives, store rollout, and strengthened profitability at Pizza Hut) outweigh the negatives, which are being actively managed.Company Guidance
Reported Revenue and Operating Profit Growth
Revenue grew 10% in reporting currency; operating profit increased 12% in reporting currency (positively impacted by foreign exchange). Excluding FX impact, system sales grew 4% and operating profit grew 6% with OP margin expanding 20 basis points year-over-year.
Record Operating Profit and EPS Strength
Operating profit was a Q1 record at $447 million, up 6% year-over-year. Diluted EPS was $0.87, up 7% year-over-year (or up 11% excluding investment in Meituan). Net income was $309 million (flat YoY), and excluding Meituan net income grew 4%.
Strong Store Expansion and Unit Economics
Opened 636 net new stores in Q1 (over one-third of annual target). On track to open >1,900 net new stores for 2026 and to surpass 20,000 total stores. Franchisees contributed 42% of Q1 net new stores and franchise portfolio exceeded 2,500 stores (from ~1,800 a year ago).
KFC Momentum and Modular Businesses
KFC system sales +5% and same-store sales +1% (fourth consecutive quarter of comp growth). Restaurant margin at KFC remained healthy at 19.1%. KCOFFEE Cafes exceeded 2,600 locations (added ~400 in Q1), with KCOFFEE sales more than doubling YoY; KPRO reached 280 locations (up from 200) and uplifted parent stores by ~20%.
Pizza Hut Profitability and Scale Improvements
Pizza Hut delivered 18% operating profit growth in reporting currency. System sales +4% and same-store transactions +5% (13th consecutive quarter). Restaurant margin improved 60 basis points YoY to 15.0% and OP margin improved 100 basis points, aided by WOW format expansion and operational efficiencies.
Consistent Multi-Metric Growth
This marks the eighth consecutive quarter delivering simultaneous growth across the three metrics (same-store sales, system sales, operating profit). Same-store transactions grew for the 13th consecutive quarter overall.
Product Innovation and Menu Wins
Launched new permanent and LTO products (e.g., Crackling Golden Chicken Wings at KFC, expanded Pizza Hut spring menu with ~30 new dishes). Hero products at KFC account for ~30% of sales and high member penetration; whole chicken sales nearly tripled since 2022 and exceeded CNY 2 billion in 2025.
Shareholder Returns and Capital Allocation
Returned $316 million to shareholders in Q1 ($214 million buybacks, $102 million dividends). On track to return $1.5 billion in 2026 (~9% of current market cap) with $400 million in dividends and $1.1 billion in buybacks; guidance to return ~100% of free cash flow starting 2027.
YUMC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
YUMC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $47.34 | $48.69 | +2.85% |
Feb 04, 2026 | $50.46 | $52.84 | +4.73% |
Nov 04, 2025 | $43.52 | $44.35 | +1.91% |
Aug 05, 2025 | $45.75 | $42.95 | -6.11% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Yum China Holdings (YUMC) report earnings?
Yum China Holdings (YUMC) is schdueled to report earning on Jul 23, 2026, After Close (Confirmed).
What is Yum China Holdings (YUMC) earnings time?
Yum China Holdings (YUMC) earnings time is at Jul 23, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is YUMC EPS forecast?
YUMC EPS forecast for the fiscal quarter 2026 (Q2) is 0.67.
