Yum China (09987) released its interim performance report, with a net profit of 507 million US dollars, an increase of 1.6% year-on-year.

Yum China (09987) announced its mid-year performance for the six months ending June 30, 2025. The group achieved total revenue of $5.768 billion, an increase of 2.32% year-on-year; net profit of $507 million, an increase of 1.6%; and diluted earnings per share of $1.35. For the six months ending June 30, 2025, operating profit increased by 10% to 11% (excluding the impact of foreign exchange), primarily due to increased total revenue, favorable raw material prices, and efficiency improvements from streamlined operations. This was partly offset by increased costs for high-value products, higher delivery costs due to an increase in the proportion of delivery sales during the period, and a low single-digit wage increase. For the fiscal year 2025, the company expects to add a net total of approximately 1600 to 1800 stores, with capital expenditures ranging from $600 to $700 million, lower than the initial target of $700 to $800 million due to optimization of single-store investment costs. In 2025, the company projects that franchisees will account for 40-50% of net additions for KFC and 20-30% for Pizza Hut, achieving the targets ahead of schedule. In the coming years, the company plans to increase the proportion of franchisees in net new store additions within established ranges. The company plans to return $3 billion to shareholders between 2025 and 2026, following a $1.5 billion return in 2024. The company expects shareholder returns of at least $1.2 billion for the full year 2025.