Yum China Q1 Revenue Up 10% to $3.3B with 636 New Stores
Yum China delivered 10% YoY revenue growth to $3.3 billion and 12% operating profit increase to $447 million in Q1, with diluted EPS rising 13% to $0.87. The company opened 636 net new stores and plans $1.5 billion in shareholder returns, representing about 9% of its market capitalization.
1. Strong Revenue and Profit Growth
Total revenues grew 10% year-over-year to $3.3 billion, while operating profit rose 12% to a first-quarter record $447 million, driving diluted EPS up 13% to $0.87. System sales excluding FX increased 4%, and same-store transactions grew 2% for the 13th consecutive quarter.
2. Record Store Expansion
Yum China opened a record 636 net new stores in Q1—more than double last year's openings—with franchise partners responsible for 39% of new locations, bringing the total network to 18,737 outlets as of March 31.
3. Margin Performance
Operating profit margin expanded by 30 basis points year-over-year to 13.7%, marking the eighth straight quarter of margin growth. Restaurant margin declined by 40 basis points to 18.2% due to higher delivery costs from increased delivery mix.
4. Delivery Growth and Shareholder Returns
Delivery sales surged 31% year-over-year, accounting for 54% of total company sales, up from 42% a year earlier, as KFC and Pizza Hut rolled out new delivery initiatives. The company returned $316 million to shareholders in Q1 and targets $1.5 billion in returns, about 9% of market capitalization, in 2026.