YUM CHINA (09987) The operating profit in the third quarter increased by 8% year-on-year to 400 million US dollars.

Yum China (09987) announced the performance for the third quarter of 2025, with a 4% year-on-year increase in system sales, total revenue of $3.206 billion, a 4% year-on-year increase; operating profit increased by 8% to $400 million; net profit was approximately $282 million, with basic earnings per ordinary share of $0.76. For the period of January to September, total revenue was $8.974 billion, a 3% year-on-year increase; operating profit increased by 9% to $1.103 billion, net profit was $789 million, and basic earnings per ordinary share was $2.12. Specifically, KFC's quarterly system sales increased by 5% year-on-year. Same store sales grew by 2%, and same store transactions increased by 3%. Average check size decreased by 1%, mainly due to the rapid growth of small orders. Delivery sales increased by 33% compared to the same quarter, accounting for 51% of KFC's restaurant revenue. KFC added a net total of 402 new stores in the quarter, marking a historical high for the third quarter, with franchise stores accounting for 41%. A total of 992 new stores were added in the first nine months. As of September 30, 2025, the total number of stores reached 12,640. Operating profit for the quarter increased by 6% to $384 million, achieving a new high for the third quarter. The core operating profit increased by 6%. The operating profit margin for the quarter was 16.0%, an increase of 30 basis points. Restaurant profit margin was 18.5%, an increase of 20 basis points, mainly due to operational streamlining and favorable raw material prices, partially offset by increased delivery costs due to the higher proportion of delivery sales, and the increase in high-value products. Pizza Hut's quarterly system sales increased by 4%. Same store sales increased by 1%. Same store transactions increased by 17%, marking the eleventh consecutive quarter of growth. Pizza Hut added a record net total of 158 new stores in the quarter, with franchise stores accounting for 28%. A total of 298 new stores were added in the first nine months. As of September 30, 2025, the total number of stores reached 4,022. Operating profit for the quarter increased by 7% to $57 million. Core operating profit increased by 7%. The company plans to add approximately 1,600 to 1,800 new stores in 2025. Building on the $1.5 billion returned to shareholders in 2024, the company plans to return $3 billion to shareholders between 2025 and 2026. Ms. Joey Wat, CEO of Yum China, said, "We have achieved robust quarterly performance in the ever-changing market environment. We have accelerated the pace of store openings, achieved positive same store sales growth, and expanded profit margins. It is not easy to achieve success on all three fronts, which reflects the effectiveness of our innovation and efficiency-driven strategy. KFC has set a historical record in store openings this year, and Pizza Hut has also accelerated its expansion, surpassing the milestone of 4,000 stores this quarter. Our flexible store models combined with our franchise strategy allow us to expand more quickly with lower investment." Ms. Wat continued, "We continue to drive strong growth in flagship products and expand new growth engines. Building on classic New Orleans Wings and Spicy Chicken Wings, KFC has launched Thin & Crispy Golden Chicken Wings, further solidifying its core position in the chicken wings category. The new chicken wings saw a surge in sales during the promotional period, rivaling the popularity of classic wings. Pizza Hut's new Handcrafted Thin-Crust Pizza has been well-received, showing impressive repeat purchases and quickly becoming the top-selling crust." Ms. Wat concluded, "On the front end, we cover a wide range of consumer scenarios and customer groups through a combination of multiple brands, rich store formats, and diversified product lines. On the back end, we improve efficiency through cross-store, cross-region resource sharing and integration, building a stronger synergy. Luckin Coffee now has over 1,800 stores, well exceeding our original plan. The KPRO concept, featuring power bowls and superfood smoothies, has opened over 100 locations in top-tier cities. By leveraging the sharing of in-store resources and the KFC membership system, we have quickly scaled these models and achieved additional sales and profits. With our core competencies, mature RGM strategy (resilience, growth, moat), and solid execution capabilities, we are confident in the future growth potential and look forward to sharing more information at the upcoming investor conference."