Prime Highlights
- Yum China delivered a strong fourth quarter, supported by a sharp rise in delivery orders and aggressive store expansion, despite cautious consumer spending in China.
- Management highlighted sustained momentum, with three consecutive quarters of same-store sales growth and continued success from KFC and Pizza Hut’s evolving store formats.
Key Facts
- Fourth-quarter revenue reached US$2.8 billion, up 9% year on year, while delivery sales jumped 34% and accounted for about 53% of total revenue.
- The company opened 1,706 net new stores in fiscal 2025, ending the year with over 18,100 outlets, and plans to exceed 20,000 restaurants with more than 1,900 new openings in the coming year.
Background
Yum China Holdings ended fiscal year 2025 on a strong note. In the fourth quarter, growth came from a big jump in delivery orders and rapid store expansion, even as consumer spending in China remained cautious.
For the quarter ended December 31, the restaurant operator posted revenue of US$2.8 billion, a 9% increase from a year earlier. Same-store sales rose 3%, marking the third straight quarter of positive comparable growth. System sales increased 7% during the period.
Delivery continued to play a key role in performance. Delivery sales jumped 34% in the fourth quarter and accounted for about 53% of total revenue. The company said the shift towards digital ordering and convenience remains central to its strategy, especially as dine-in traffic stayed uneven across regions.
Store expansion also supported growth. Yum China opened a record 587 net new restaurants in the fourth quarter, with around 36% of them operated by franchise partners. For the full year, the company added 1,706 net new stores, bringing its total number of outlets to more than 18,100 nationwide.
For the full fiscal year, Yum China reported revenue of US$11.8 billion, up 4% year on year. Operating profit rose 11% to about US$1.3 billion, reflecting improved efficiency and scale benefits.
Chief executive officer Joey Wat said the fourth-quarter performance capped a strong year, with same-store sales growth recorded for three consecutive quarters and transaction growth for twelve straight quarters.
She added that KFC continued to attract new customers through its KCoffee cafe format and Kpro modules, while Pizza Hut strengthened its value offerings and expanded its Wow store model in lower-tier cities.
Looking ahead, Yum China aims to operate more than 20,000 restaurants by the end of the year. The company plans to open more than 1,900 net new stores. Franchised outlets will likely account for 40% to 50% of these new stores as the company grows its hybrid ownership model.
