1. YUMC achieved 9th consecutive quarter of same-store sales growth. 2. Diluted EPS increased 8% versus prior year despite market challenges. 3. KFC launched new spicy flavor; Pizza Hut revamped menu items. 4. Company targeted 1,600-1,800 new store openings for 2025. 5. Overall operating profit rose by 7% year-over-year.
Positive earnings growth indicates resilience. Similar trends in past quarters led to stock price increases.
The company's results show strong operational improvements that could influence investor sentiment positively.
Sustained same-store sales growth and commitment to expansion signal long-term strength.
9th Consecutive Quarter of Same-Store Transaction Growth
OP Margin Increased 80 Basis Points to 13.4% and Restaurant Margin Expanded 100 Basis Points
Operating Profit Up 7%; Diluted EPS Up 8%, or 12% Excluding F/X and Mark-to-market Impact
SHANGHAI, April 30, 2025 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the first quarter ended March 31, 2025.
Joey Wat, CEO of Yum China, commented, "We achieved a solid first-quarter performance amid an uncertain market environment. These results underscore the resilience of our business and the success of our dual-focus strategy, emphasizing innovation and operational efficiency.
KFC continued to show resilience, delivering solid growth and profitability through both good times and bad. Pizza Hut continued its positive momentum after reaching what we believe was an inflection point. Our innovations touch every aspect of the business. KFC launched the spicy flavor of Original Recipe Chicken for the first time since we entered China in 1987. Pizza Hut added fresh twists to its classic Super Supreme flavor, offering it on burgers and pasta in addition to pizzas."
Wat continued, "Our breakthrough model, KCOFFEE Cafe, reached the milestone of 1,000 locations. This business model leverages KFC's store space, resources and membership to attract additional traffic. For Pizza Hut, building on the success of WOW store conversions, we have opened brand new WOW stores in lower tier cities, where capex can be as low as half of a regular Pizza Hut store.
Our teams are also continuously exploring ways to create more operational efficiency through innovative technologies, such as robotics and Generative AI. In the current evolving market environment, we remain steadfast in achieving our full year targets, including 1,600-1,800 net new stores, while creating sustainable, long-term value for our shareholders."
| First Quarter | %/ppts Change | 2025 | 2024 |
|---|---|---|---|
| System Sales Growth (1) (%) | 2 | 6 | |
| Same-Store Sales Growth (1) (%) | Even | (3) | |
| Operating Profit ($mn) | 399 | 374 | |
| Net Income ($mn) | 292 | 287 | |
| Diluted Earnings Per Common Share ($) | 0.77 | 0.71 |
This includes important updates on our capital returns and resources directed toward enhancing shareholder value.
Yum China's management will hold an earnings conference call at 7:00 a.m. U.S. Eastern Time on Wednesday, April 30, 2025 (7:00 p.m. Beijing/Hong Kong Time on Wednesday, April 30, 2025).
For more information:
Visit Yum China's Investor Relations website.
Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 16,000 restaurants under six brands across over 2,300 cities in China.
Investor Relations Contact:
Tel: +86 21 2407 7556