Yum China reported fourth-quarter earnings of $0.40 per share, surpassing the Zacks Consensus Estimate of $0.35 by 14.3%. Revenues reached $2.82 billion, topping consensus by 3.0% and representing a 9% year-over-year increase (7% excluding foreign-currency impacts). Same-store sales grew 3% — the third consecutive quarter of positive comps — while system sales rose 7%. Delivery sales surged 34%, accounting for 53% of total sales compared with 42% in the prior-year quarter. The company opened a record 587 net new restaurants in the quarter, 36% of which were franchise-operated.

On February 4, 2026, Jefferies upgraded Yum China to a Buy rating and raised its target from $58.75 to $63.64, citing consistent outperformance against Wall Street forecasts. Jefferies highlighted the 14.3% earnings surprise, robust same-store sales trends at KFC and Pizza Hut, and accelerating delivery penetration as key drivers. The upgrade follows three consecutive quarters of margin expansion, with fourth-quarter operating profit rising 25% to $187 million, and operating-profit margin improving by 80 basis points to 6.6%.

For the full year 2025, Yum China achieved system-sales growth of 4% (excluding currency), revenues of $11.8 billion (up 4%), and operating profit of $1.29 billion (up 11%), with operating-profit margin expanding 60 basis points to 10.9%. Diluted EPS rose 8% to $2.51, or up 14% after adjusting for mark-to-market equity impacts. The company opened 1,706 net new stores, bringing total units to 18,101. Delivery now represents 48% of sales, up from 39% a year earlier. Yum China returned $1.5 billion to shareholders in 2025 through dividends and share buybacks and plans to sustain that annual capital return through 2026.