Yum China (09987) Announces Second Quarter Results Operating Profit Increased 14% Year Over Year to US$348 Million

According to the Zhitong Finance App, Yum China (09987) announced financial results for the second quarter of 2026. The company's total revenue increased 13% year over year to 3.1 billion US dollars; operating profit increased 14% year over year to US$348 million; net profit increased 14% year over year to US$244 million; and diluted earnings per share increased 21% year over year to 0.70 US dollars.

Ms. Qu Cuirong, CEO of Yum China, said, “We achieved strong results in the second quarter and achieved simultaneous growth in system sales, operating profit and operating profit margin for the ninth consecutive quarter. Despite the changing market environment, our revenue growth in the second quarter continued to outperform the industry. Same-store sales increased to 1% month-on-month, mainly due to an increase in same-store transactions for the 14th consecutive quarter. At the same time, the pace of expansion of the company's own stores and franchisees accelerated compared to the same period last year. KFC achieved strong operating performance, system sales increased 7% year over year, and restaurant profit margins also increased. Pizza Hut's same-store sales have resumed positive growth, and the net number of new stores was nearly double that of the same period last year.”

Ms. Qu continued, “Our innovative menu and groundbreaking side-by-side model are helping us expand more consumption scenarios and reach new customer groups. As we accelerate the promotion of Kenyue Coffee, KPRO Kenroe Light Food and Express Delivery services to more KFC stores, Pizza Hut also launched the Pizza Hut Burger module to drive incremental sales and profit growth. At the same time, stores such as KFC Town and Pizza Hut WOW continue to help us speed up the penetration of lower-tier cities. Although the impact of last year's takeout platform subsidies will make us face a higher year-on-year base in the second half of the year, with diversified growth drivers, we are confident that we will continue to lead the industry and achieve our growth targets for the whole year.”

Ms. Qu concluded, “After 36 years of operating Pizza Hut in China, we are about to have a major breakthrough — becoming Pizza Hut's brand owner in mainland China. In the short term, we expect that cost savings from eliminating brand franchise fees will drive up profit margins, bring Pizza Hut's restaurant profit margins closer to KFC's, and allow more potential new stores to reach a payback period of two to three years. Over the long term, brand ownership will give us greater strategic flexibility, enable us to seize new opportunities, and drive innovation more flexibly in terms of menus, store models, new modules, and operations management. We anticipate this will accelerate Pizza Hut's growth rate and create long-term, sustainable value for shareholders.”