Yum China delivered a robust fourth quarter with total system sales up 7% year-over-year excluding foreign exchange, driven by a 3% increase in same-store sales and a 4% rise in same-store transactions. Total revenues reached $2.8 billion, a 9% reported increase and 7% ex-FX growth. Operating profit surged 25% to $187 million, with core operating profit up 23%, lifting operating margin by 80 basis points to 6.6%. Restaurant margin improved 70 basis points to 13.0%, reflecting lower Food & Paper and Occupancy expense ratios. Delivery sales accelerated 34%, now representing 53% of total sales compared with 42% in the prior year quarter.

For the full year, system sales expanded 4% ex-FX, while same-store sales grew 1%. Revenues climbed to $11.8 billion, marking a 4% increase both reported and ex-FX. Operating profit rose 11% to $1.3 billion, with core operating profit also up 11%, driving full-year operating margin to 10.9% (up 60 basis points). Restaurant margin improved to 16.3% (up 60 basis points). Diluted earnings per share increased 8% to $2.51, or 14% on a core basis excluding mark-to-market equity impacts and FX fluctuations. The company opened 1,706 net new stores (31% franchised), bringing the total to 18,101 units.

Yum China returned $1.5 billion to shareholders in 2025, comprising $353 million in dividends and $1.14 billion in share repurchases (24.7 million shares, or 7% of shares outstanding as of year-end 2024). The board approved a 21% increase in the quarterly cash dividend to $0.29 per share, payable in March 2026, and committed to return $1.5 billion annually through 2026 (approximately 8% of market capitalization). For the first half of 2026, the company entered share repurchase agreements totaling US$460 million in the U.S. and Hong Kong. From 2027, Yum China plans to distribute nearly 100% of free cash flow after non-controlling interests, targeting $900 million to $1+ billion annually.

CEO Joey Wat highlighted sustained same-store sales gains for three consecutive quarters and transaction growth for twelve straight quarters. Yum China is on track to exceed 20,000 stores in 2026 and aims for over 30,000 by 2030 through a hybrid equity-and-franchise model. The company will continue executing its RGM 3.0 strategy focusing on product innovation, front-end segmentation and back-end consolidation to deepen market penetration, particularly in lower-tier cities, and drive long-term margin expansion.