YUMC

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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8-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 4, 2026

Yum China Holdings, Inc. (Exact Name of Registrant as Specified in its Charter)

Delaware

001-37762

81-2421743

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

101 East Park Boulevard, Suite 805 Plano, Texas 75074 United States of America

Yum China Building 20 Tian Yao Qiao Road Shanghai 200030 People’s Republic of China

(Address, including zip code, of principal executive offices)

(469) 980-2898 (Registrant's telephone number, including area code) Not Applicable (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

YUMC

New York Stock Exchange

9987

The Stock Exchange of Hong Kong Limited

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.

Results of Operations and Financial Condition.

On February 4, 2026, Yum China Holdings, Inc. (the “Company”) issued a press release announcing its unaudited results for the full year and fourth quarter ended December 31, 2025. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished with this report:

Exhibit No.

Exhibit Description

99.1

Press Release of Yum China Holdings, Inc. issued February 4, 2026.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

YUM CHINA HOLDINGS, INC.

By:

/s/ Pingping Liu

Name:

Pingping Liu

Title:

Chief Legal Officer

Date: February 4, 2026