China Holdings, Inc. Earnings Recaps
Q3 2026
Nov 4, 2026
Yum China’s shares rose 1.6%, a roughly flat reaction. Third-quarter sales and profit increased year over year, while same-store sales remained below the prior-year level amid tough comparisons and August weather; margin gains and record new-store additions partly offset that softness.
Key takeaways
- System sales grew 3% excluding foreign exchange, and core operating profit rose 6%. In reporting currency, revenue increased 8%, operating profit 13% and diluted EPS 20%, partly supported by favorable FX.
- Same-store sales were 97% of the prior-year level, while same-store transactions grew for the 15th consecutive quarter. Management cited last year’s delivery subsidies and extreme weather in August as factors weighing on sales.
- Restaurant margin improved 50 basis points and operating profit margin 40 basis points year over year, supported by operational efficiencies and, in part, Pizza Hut license-fee savings after the Mainland China acquisition.
- Yum China added close to 700 net new stores in the quarter, a quarterly record, and reached 20,000 total stores. Active members rose 6% year over year to 278 million.
- KFC system sales grew 3% and operating profit 4%; same-store sales were at 97% of the prior year, with transactions up 3% and average ticket down 5% to 36 yuan.
Q3 2025
Nov 4, 2025
Yum China delivered a strong third quarter for 2025, marked by an 8% increase in operating profit and accelerated store expansion, reflecting robust consumer demand across its brands.
Key takeaways
- System sales rose 4% year-over-year, with same-store sales achieving growth for the second consecutive quarter.
- Operating profit reached a record $400 million, demonstrating improved restaurant margins of 17.3%.
- KFC opened a record 402 net new stores, contributing to a total of over 12,640 locations, while Pizza Hut surpassed 4,000 stores.
- Delivery sales increased to 51% of total sales, bolstered by innovative menu offerings and effective promotional strategies.
- Continued focus on menu innovation and entry-level pricing positions Yum China to capture a broader consumer base, especially in lower-tier cities.