YUMC

EX-99.1

2 yumc-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Yum China Reports Third Quarter 2026 Results

Grew Revenue 8%, Operating Profit 13% and Diluted EPS 20%

15th Consecutive Quarter of Same-Store Transaction Growth; Year-over-Year Expansion in Both Restaurant and OP Margins

Achieved Record Net New Store Openings in the First Nine Months, Raising 2026 Full-Year Target to Over 2,400

On Track to Return $1.5 Billion to Shareholders in 2026, ~10% of Current Market Capitalization

Shanghai, China (November 3, 2026) – Yum China Holdings, Inc. (the “Company” or “Yum China”) (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the third quarter ended September 30, 2026.

Third Quarter Highlights

• Total system sales grew 3% year over year (“YoY”), excluding foreign currency translation (“F/X”).

• Same-store sales reached 97% of the prior year’s level. Same-store transactions grew 3% YoY, the 15th consecutive quarter of growth.

• Total revenues increased 8% YoY to $3.5 billion, or a 2% increase excluding F/X.

• Opened 692 net new stores, a quarterly record high, with 44% opened by franchisees. As of September 30, 2026, total store count reached 19,989, with 19% of stores operated by franchisees.

• Operating profit grew 13% YoY to $451 million. Core operating profit grew 6% YoY.

• OP margin was 13.0%, an increase of 50 basis points YoY, the 10th consecutive quarter of OP margin expansion.

• Restaurant margin was 17.8%, an increase of 50 basis points YoY, supported by streamlined operations and favorable commodity prices, which more than offset the impact of value-for-money offerings, sales deleveraging and increased rider cost from a higher delivery mix. Pizza Hut license fee savings also contributed to margin expansion.

• Diluted EPS increased 20% YoY to $0.91, or up 12% excluding F/X, and up 8% further excluding the impact1 of mark-to-market equity investments.

• Returned $362 million to shareholders in the third quarter through $263 million in share repurchases and $99 million in cash dividends. In the first nine months of 2026, the Company returned $1,080 million to shareholders.

• Delivery sales grew 7% YoY. Delivery contributed approximately 54% of total Company sales, up from 51% in the same quarter last year and the same as the prior quarter.

• Active Members of KFC or Pizza Hut, defined as those who transacted in the past 12 months, exceeded 278 million, representing a 6% YoY increase.

• Completed the acquisition of the Pizza Hut brand in Mainland China on August 7, 2026.

CEO Comments

Joey Wat, CEO of Yum China, commented, “We delivered year-over-year growth in system sales, operating profit and OP margin for the 10th consecutive quarter, despite a dynamic operating environment. Importantly, our diluted EPS has grown by double digits year-to-date and in each of the past three years, excluding the impact of mark-to-market equity investments and foreign exchange. These results demonstrate the resilience of our business model, disciplined execution, and our commitment to delivering sustainable value to shareholders. Same-store sales faced pressure from tough comparisons against last year’s delivery platform subsidies and adverse weather in August. We captured incremental demand across a broader range of consumption occasions such as smaller orders and solo dining, and grew same-store transactions for the 15th consecutive quarter. To pursue significant opportunities in China, we accelerated store openings across Company-owned and franchise stores, leveraging our tailored store formats and menus and keeping us on track to surpass 20,500 stores this year.”

Wat continued, “We continue to build our brand and attract more customers to our stores through compelling in-store-only offers and experience, and greater takeaway convenience. Dine-in and takeaway performance improved sequentially, bucking the previous trend. Meanwhile, our side-by-side modules, which target new occasions and drive incremental sales and profit, maintained strong momentum and hit key milestones. KCOFFEE cafes crossed 4,000 locations, KPRO exceeded 700 locations, and Pizza Hut’s Burger Bar surpassed 300 locations. We are also expanding car-side pickup to drive takeaway, now covering over 9,000 KFC locations. As for our core menu, we continue to innovate around hero products to drive repeat purchases and attract new customers. Together, these growth drivers reinforce our confidence in sustainable growth. Looking ahead, on a three-year basis, we remain committed to the growth algorithm we outlined at our Investor Day.”

1 Refers to a 6-cent favorable F/X impact in this quarter and a mark-to-market loss of 2 cents in the third quarter of 2025.

1

Key Financial Results

Third Quarter

Year to Date Ended 9/30

%/ppts Change

%/ppts Change

2026

2025

Reported

Ex F/X

2026

2025

Reported

Ex F/X

System Sales Growth (2) (%)

3

4

NM

NM

4

4

NM

NM

Same-Store Sales Growth (2) (%)

(3

)

1

NM

NM

(1

)

1

N

EX-99.1

2 yumc-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Yum China Reports Second Quarter 2026 Results

Revenue Increased by 13%; Operating Profit Up 14%; Diluted EPS Grew 21%

Same-Store Sales Growth Improved Sequentially to 1%; OP Margin Expanded Year Over Year for the 9th Consecutive Quarter

Acquisition of the Pizza Hut Brand in Mainland China Expected to Close in August 2026

On Track to Return $1.5 Billion to Shareholders in 2026, ~10% of Current Market Capitalization

Shanghai, China (July 30, 2026) – Yum China Holdings, Inc. (the “Company” or “Yum China”) (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the second quarter ended June 30, 2026.

Second Quarter Highlights

• Total system sales grew 6% year over year (“YoY”), excluding foreign currency translation (“F/X”).

• Same-store sales grew 1% YoY. Same-store transactions grew 5% YoY, the 14th consecutive quarter of growth.

• Total revenues increased 13% YoY to $3.1 billion, or a 6% increase excluding F/X.

• Opened 560 net new stores, a second-quarter record high and 67% higher than the openings in the same quarter last year, with 41% opened by franchisees. As of June 30, 2026, total store count reached 19,297, with 18% of stores operated by franchisees.

• Operating profit grew 14% YoY to $348 million, a second-quarter record high. Core operating profit grew 7% YoY.

• OP margin was 11.1%, an increase of 20 basis points YoY, the ninth consecutive quarter of OP margin expansion.

• Restaurant margin was 16.1%, flat YoY, primarily due to increased rider cost from a higher delivery mix, offset by streamlined operations.

• Diluted EPS increased 21% YoY to $0.70, or up 14% excluding F/X, and up 10% further excluding the impact1 of the mark-to-market equity investments.

• Returned $402 million to shareholders through $301 million in share repurchases and $101 million in cash dividends.

• Delivery sales grew 26% YoY. Delivery contributed approximately 54% of total Company sales, up from 45% in the same quarter last year.

• Active Members of KFC or Pizza Hut, defined as those who transacted in the past 12 months, exceeded 270 million, representing a 6% YoY increase.

CEO Comments

Joey Wat, CEO of Yum China, commented, “We delivered strong results in the second quarter. For the ninth consecutive quarter, we simultaneously grew system sales, operating profit and OP margin. While the operating environment remains dynamic, our topline growth continued to outperform the industry in Q2. Same-store sales growth improved sequentially to 1%, led by the 14th consecutive quarter of same-store transaction growth, while store openings continued to accelerate year over year across both company-owned and franchise stores. KFC delivered strong results, with 7% system sales growth and restaurant margin expansion. Pizza Hut’s same-store sales returned to positive growth and net new openings nearly doubled from last year.”

Wat continued, “Our menu innovations and breakthrough side-by-side modules are helping us broaden into new occasions and new customer segments. As we rapidly roll out KCOFFEE cafe, KPRO and car-side pickup services to more KFC locations, Pizza Hut has also built a Pizza Hut Burger Bar to drive incremental sales and profit. At the same time, our KFC Small Town and Pizza Hut WOW models are helping us deepen penetration in lower-tier cities. With our multiple growth drivers, we are confident in our ability to lead the catering industry and deliver on our full-year growth targets, even as we face tougher comparisons in the second half of the year following last year’s delivery platform subsidies.”

Wat concluded, “We are about to reach a major breakthrough by becoming the owner of the Pizza Hut brand in Mainland China, after operating the brand in the market for 36 years. In the near term, we expect the savings in license fees to support margin expansion, with Pizza Hut's restaurant margin approaching KFC's. More potential new stores are expected to meet our payback requirements of two to three years. Over the longer term, brand ownership will give us greater strategic flexibility to capture new opportunities and innovate more nimbly across our menu, store formats, new business modules and operations. We expect this to accelerate Pizza Hut’s growth trajectory and generate sustainable long-term value for our shareholders.”

1 Refers to a 4 cents favorable F/X impact, and a lower mark-to-market loss of 2 cents in the second quarter of 2026, compared with a loss of 4 cents in the second quarter of 2025.

1

Key Financial Results

Second Quarter

First Half (Year to Date Ended 6/30)

%/ppts Change

%/ppts Change

2026

2025

Reported

Ex F/X

2026

2025

Reported

Ex F/X

System Sales Growth (2) (%)

6

4

NM

NM

5

3

NM

NM

Same-Store Sales Growth (2) (%)

1

1

NM

NM

1

Even

NM

NM

Operating Profit ($mn)

348

304

+14

+7

795

703

+13

+7

Adjusted Operating Profit (3) ($mn)

348

304

+14

+7

795

703

+13

+7

Core Operat

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