Yum China Reports 13% Revenue Growth to $3.138 Billion in Q2 2026

Yum China Holdings, Inc. reported a significant increase in its financial performance for the second quarter and year-to-date ending June 30, 2026, compared to the same periods in 2025. Total revenues reached $3.138 billion for the quarter, marking a 13% increase from $2.787 billion in the prior year. Year-to-date revenues also rose to $6.409 billion, up 11% from $5.768 billion. The company's net income for the quarter was $244 million, a 14% increase from $215 million, while year-to-date net income rose to $553 million from $507 million, reflecting a 9% increase. Diluted earnings per share improved to $0.70 for the quarter and $1.57 year-to-date, compared to $0.58 and $1.35, respectively, in the previous year.

The company's operational metrics showed positive trends, with a 1% same-store sales growth for the quarter and year-to-date. The increase in revenues was primarily driven by a 5% net new unit contribution and improved efficiency in operations. Yum China also reported a total of 19,297 restaurants across its brands, including KFC and Pizza Hut, as of June 30, 2026, reflecting a 14% increase in unit count from the previous year. The company’s KFC segment operated 13,789 restaurants, while Pizza Hut had 4,549 locations.

Strategically, Yum China announced the acquisition of the Pizza Hut brand in Mainland China for $1.2 billion, which is expected to eliminate the license fees previously paid to Yum! Brands. This acquisition, finalized in August 2026, is anticipated to enhance the company's operational control and profitability. Additionally, the company entered into an amended master license agreement with Yum! Brands, maintaining exclusive rights to the KFC and Taco Bell brands in China.

In terms of cash flow, Yum China generated $976 million from operating activities in the first half of 2026, up from $864 million in the same period of 2025. The company utilized $265 million for investing activities, a decrease from $290 million the previous year, while financing activities accounted for $739 million, reflecting increased share repurchases and dividends. The company has authorized a total of $5.4 billion for share repurchases, with $641 million remaining as of June 30, 2026.

Looking ahead, Yum China plans to continue expanding its restaurant network and investing in digitalization and logistics infrastructure. The company expects to maintain a strong capital return program, targeting approximately $1.5 billion in returns to shareholders in 2026. The outlook remains positive, with anticipated capital expenditures ranging from $600 million to $700 million for the fiscal year.