**Yum China Reports Fiscal Year 2025 Financial Results**
Yum China Holdings, Inc., the largest restaurant company in China, reported total revenues of $11.8 billion for the fiscal year 2025. This represents a 4% increase compared to the $11.3 billion reported in the previous fiscal year, with or without considering the impact of foreign currency translation. The revenue growth was primarily driven by a 3% contribution from net new unit openings and a 1% increase in same-store sales. As of December 31, 2025, the company operated 18,101 restaurants across more than 2,500 cities, with approximately 83% being company-owned.
The company's operating profit for 2025 increased by 11% to $1.29 billion, compared to $1.16 billion in 2024, with or without considering the impact of foreign currency translation. This improvement was attributed to the increase in total revenues, favorable commodity prices, and efficiency gains from streamlined operations. These positive factors were partially offset by increased delivery costs associated with a higher delivery sales mix and value-for-money offerings. Net income for 2025 increased by 2% to $929 million, compared to $911 million in 2024, with or without considering the impact of foreign currency translation. This increase was mainly due to the increase in operating profit, partially offset by the decrease in fair value of the company's investment in Meituan, less interest income due to lower investment balance and interest rates and higher income tax expenses in line with the increase in pre-tax income.
Operationally, Yum China continued to expand its restaurant network, entering approximately 270 new cities in 2025. The company aims to nearly double its presence by 2030, increasing penetration from 2,500 to 4,500 cities. The franchise mix of net new stores increased from 30% in 2024 to 37% in 2025 for KFC, and from 10% in 2024 to 31% in 2025 for Pizza Hut. The company anticipates the franchise mix of net new stores will increase to 40% to 50% for both KFC and Pizza Hut from 2026 to 2028, targeting to raise the total franchise mix to twenties percentages by 2028. Digital sales exceeded $10 billion, with digital ordering accounting for approximately 94% of total company sales in 2025. As of December 31, 2025, KFC and Pizza Hut loyalty programs, combined, exceeded 590 million members.
Looking ahead, Yum China plans to continue its "RGM 3.0" strategy, focusing on resilience, growth, and moat, powered by innovation and operational efficiency. The company aims to reach 20,000 stores in 2026 and targets over 30,000 stores by 2030. The company also plans to continue investing in digitalization and supply chain management. The company plans to return an average annual return of approximately $900 million to over $1 billion in 2027 and 2028, and to exceed $1 billion in 2028. On February 4, 2026, the Board of Directors declared a 21% increase in the cash dividend, raising it to $0.29 per share, payable on March 25, 2026, to stockholders of record as of the close of business on March 4, 2026.
About Yum China Holdings, Inc.
Yum China Holdings, Inc. is the largest restaurant operator in China, managing brands like KFC, Pizza Hut, Taco Bell, and emerging concepts such as Lavazza and Little Sheep. It focuses on franchise and company-operated outlets, menu innovation, digital ordering, delivery, and expanding its geographic footprint across China’s cities and tiers. The company emphasizes food quality, operational efficiency, digital transformation, and strategic growth in the competitive Chinese restaurant industry.
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