Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Q4 2025 Earnings Presentation
42 slides from Yum China's earnings presentation, Feb 4, 2026
Slide 1: Fourth Quarter and Fiscal Year 2025 Results
Fourth Quarter and Fiscal Year 2025 Results February 4, 2026 NYSE: YUMC and HKEX: 9987
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to our projected capital returns. We intend all forward-looking statement
Slide 3: Q4 Posted Strong Sales and Operating Profit Growth
Q4 Posted Strong Sales and Operating Profit Growth Sales Growth Margin Expansion Profit Growth System Sales Same-store OP Restaurant Operating Diluted Growth1 Sales Growth1 Margin Margin Profit EPS +7% +3% 6.6% 13.0% $187 mn $0.40 Q4 YoY +80 bps +70 bps +25% +33% Q4 YoY Q4 YoY 3 consecutive quarters
Slide 4: Solid Growth and Capital Returns Delivered in Full Year 2025
Solid Growth and Capital Returns Delivered in Full Year 2025 $11.8 bn $1.3 bn $1.5 bn Revenue +4% YoY Operating Profit +11% YoY Capital Returns System Sales Same-store OP Restaurant ~8% of Market Growth1 Sales Growth1 Margin Margin Capitalization2 +4% +1% 10.9% 16.3% Diluted EPS YoY Net new +60 bps
Slide 5: Our Core Initiatives Drove Positive Momentum in 2025
Our Core Initiatives Drove Positive Momentum in 2025 Same-store Sales Index System Sales Growth YoY 103 YoY +7% 101 101 +4% +4% 100 +2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Operating Profit Growth Net New Stores YoY +25% +23% 587 536 +14%+14% 336 247 +7% +8% +8% +8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 OP growth Core OP grow
Slide 6: Reached 18,101 Stores in 2025
Reached 18,101 Stores in 2025 On Track for 20,000+ Stores in 2026 Total Stores 18,101 >15,000 4 years Targeting >10,000 20,000+ stores by 2026 8 years 30,000+ stores by 2030 >5,000 2026 - 2028 franchise mix of KFC & Pizza Hut net new stores: 25 years 40%-50% 1987 1988 2001 2004 2006 2007 2008 2010 2
Slide 7: Reaching More Cities with Diverse Store Formats and Both Equity and Franchise Stores
Reaching More Cities with Diverse Store Formats and Both Equity and Franchise Stores Total Stores Net New Stores Reduced Healthy New Expanding into More Cities in 2025 Average Capex Store Payback3 12,997 1,349 2,500+ 270+ ~1.3 mn 1 RMB / store ~2 years Cities with New cities entered 15% Franchise 37
Slide 8: Balanced and Disciplined Delivery Approach: Driving Top-line Growth While Protecting Margins
Balanced and Disciplined Delivery Approach: Driving Top-line Growth While Protecting Margins +26% +22% Delivery Sales +25%1 YoY in 2025 YoY in 2025 YoY in 2025 • Delivery mix increased from 42% in Q1 to 53% in Q4, yet restaurant margins ~31% ~27% sustained YoY improvement every ~44% quarter in 2025.
Slide 9: Building Our Virtual Space to Deepen Consumer Connections
Building Our Virtual Space to Deepen Consumer Connections Smart K Expanded Membership and Digitalization AI-Enabled Ordering Agent 590 mn+ 265 mn+ Total Members1 Active Members2 +13% YoY +13% YoY 94% $10.4 bn Digital Ordering3 Digital Sales +4pt YoY +8% YoY 1 KFC and Pizza Hut loyalty programs combi
Slide 10: KFC Maintained Strong Performance
KFC Maintained Strong Performance +5% +1% 14.5% 17.4% System Sales Same-store Sales OP Margin Restaurant Margin Growth YoY Growth YoY +50 bps YoY +50 bps YoY FULL 3 consecutive ` YEAR quarters of growth 2025 1,349 12,997 $1,285mn +8% Net New Stores Total Stores Operating Profit OP/Core OP1 Growth Yo
Slide 11: Accelerated Sales Growth in Q4
Accelerated Sales Growth in Q4 +8% +3% System Sales Same-store Sales Growth YoY Growth YoY 3% same-store transaction growth YoY Q4 2025 10.5% 14.0% OP Margin Restaurant Margin +60 bps YoY +70 bps YoY +16% +14% OP Growth YoY Core OP Growth YoY Photo: KFC Hefei Library (合肥图书馆) 11
Slide 12: Hero Products and Their Inspired Innovations Drove Meaningful Sales Uplift and Repeat Purchases
Hero Products and Their Inspired Innovations Drove Meaningful Sales Uplift and Repeat Purchases Spicy Original Recipe Chicken Spicy Flavor of Original Recipe Chicken 12
Slide 13: Celebrate CNY with Our Signature Bucket
Celebrate CNY with Our Signature Bucket 13
Slide 14: KCOFFEE Cafe Rolled Out to 2,200 Locations in 2025
KCOFFEE Cafe Rolled Out to 2,200 Locations in 2025 Apple Butter Flavored Latte Black Gold Nama Chocolate Latte Hazelnut Dark Chocolate Egg Tarts Daily Cups per Store +25%1 New Product Every Week 1 2025 vs 2024 Photo: KCOFFEE Cafe Wenzhou Wuma Street (温州五马街) 14
Slide 15: KPRO Expanded Footprint to 200+ Locations in 2025
KPRO Expanded Footprint to 200+ Locations in 2025 Roasted Chicken with Tomato Pasta Bowl Roasted Chicken Energy Bowl Super Food Smoothie Salmon & Edamame Braised Rice Bowl Acaí Mixed Berry Kale Avocado Yogurt Yogurt Smoothie Smoothie Focus on Higher-Tier Cities 15
Slide 16: Pizza Hut: Record Expansion and Margin Breakthrough
Pizza Hut: Record Expansion and Margin Breakthrough +4% +1% 7.9% 12.8% System Sales Same-store Sales OP Margin Restaurant Margin Growth YoY Growth YoY +110 bps YoY +80 bps YoY 3 consecutive Highest since FULL quarters of growth 2016 YEAR 2025 444 4,168 $183 mn +19% +20% Net New Stores Total Stores O
Slide 17: Solid Q4 Performance
Solid Q4 Performance +6% +1% 13% same-store transaction growth YoY, the 12th consecutive quarter of growth System Sales Same-store Sales Growth YoY Growth YoY Q4 3.7% 9.9% 2025 OP Margin Restaurant Margin +110 bps YoY +60 bps YoY +52% +51% OP Growth YoY Core OP Growth YoY Photo: Pizza Hut Shenzhen S
Slide 18: Enhanced Pizza Expertise and Value-for-money Broadened Addressable Market and Drove Strong Traffic
Enhanced Pizza Expertise and Value-for-money Broadened Addressable Market and Drove Strong Traffic New Thin-Crust – New Menu Features Now Our Best-selling Pizza Crust1 Products at Great Prices Spicy Pepper Butterfly French Butter Flavored Drumettes Chicken Pizza French Butter Flavored Crispy Beef Pi
Slide 19: Celebrating CNY: Super Supreme Pizza with New Twists
Celebrating CNY: Super Supreme Pizza with New Twists Super Supreme Pizza with Crunchy Chips and Salted Egg Yolk Sauce Salted Egg Yolk Chicken Super Supreme Pizza Super Supreme Pizza Bolognese Super Supreme Pizza 19
Slide 20: Pizza Hut WOW Expanded into ~100 New Cities in 2025
Pizza Hut WOW Expanded into ~100 New Cities in 2025 Improving Restaurant Margins Estimated New Store Payback Period of 2-3 Years Photo: Pizza Hut WOW Putian Fengting Fengcheng (莆田市枫亭枫城新都) 20
Slide 21: Lavazza's Dual Growth Engines Have Made Steady Progress
Lavazza’s Dual Growth Engines Have Made Steady Progress Coffee Shop: Retail Business2: Improved Store Economics Profitable Growth 146 +34 Total Stores Net New Stores >40% Retail Sales Positive Growth YoY Same-store Sales Growth YoY >2x 47% Retail Operating Profit YoY Lower New Store Capex1 Full year
Slide 22: Significant Capital Returns to Shareholders
Significant Capital Returns to Shareholders Capital Returns to Shareholders in 2017-20251 Target Capital Returns Increase in Quarterly in 2024-262 Cash Dividends ~$6 bn since spin-off $1.5 bn +21% In $mn 1,490 1,489 Each year To $0.29 in Q1 2026 2027 & Beyond Outlook 833 668 473 442 Target to Return
Slide 23: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 23
Slide 24: Fourth Quarter Grew YoY and vs 2019
Fourth Quarter Grew YoY and vs 2019 Fourth Quarter 2019 2024 2025 2025 vs 2024 2025 vs 2019 No. of Stores 9,200 16,395 18,101 +10% +97% Total Revenues ($ mn) 2,029 2,595 2,823 +9% +39% Members (mn) 240+ 525+ 590+ +13% +146% Member Sales % 56% 64% 55% (9) ppt (1) ppt Operating Profit ($ mn) 94 151 18
Slide 25: Full Year Grew YoY and vs 2019
Full Year Grew YoY and vs 2019 Full Year 2019 2024 2025 2025 vs 2024 2025 vs 2019 No. of Stores 9,200 16,395 18,101 +10% +97% Total Revenues ($ mn) 8,776 11,303 11,797 +4% +34% Members (mn) 240+ 525+ 590+ +13% +146% Member Sales % 52% 65% 61% (4) ppt +9ppt Operating Profit ($ mm) 901 1,162 1,290 +11
Slide 26: Sales and Profit Grew YoY in Fourth Quarter
Sales and Profit Grew YoY in Fourth Quarter Revenue/Sales YoY Total Revenue ($bn) 2.8 Key factors for Revenue year-over-year change 2.6 Revenue growth (reported) +9% + Net new unit contribution Revenue growth (ex F/X) +7% + Same-store sales growth System sales growth +7% 24'Q4 25'Q4 Key factors for
Slide 27: Fourth Quarter Key Performance Highlights – KFC & Pizza Hut
Fourth Quarter Key Performance Highlights – KFC & Pizza Hut Digital 25’Q4 YoY Sales Growth Channel Mix Members orders System Same-store Same-store Average Total off- Member Sales sales transactions ticket Delivery Million Sales % premise sales % YoY YoY YoY YoY +8% +3% +3% Flat 53% 75% 550+ 56% 95%
Slide 28: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 28
Slide 29: RGM 3.0 for the Future
RGM 3.0 for the Future R • Front-End Segmentation & Back-End Consolidation G • Go Deep with Core Brands • Equity & Franchise Hybrid Model as an Accelerator • Physical Store + Virtual Space M • Integrated & Agile Supply Chain • Unleash the Power of Agentic AI 29
Slide 30: Franchising as an Incremental Growth Lever to Accelerate Expansion
Franchising as an Incremental Growth Lever to Accelerate Expansion Incremental Franchising Impact 2025 2028E (2026-2028) Franchise Business Unit Mix 13% 3,000+ Net New Franchise Stores Twenties Franchise Mix of Net New Stores System Sales Mix 9% 40-50% 40-50% Mid-teens （up from 20-30%） Revenue1 Mix
Slide 31: Our Pathway to Value Creation: 2026-2028 Outlook
Our Pathway to Value Creation: 2026-2028 Outlook 2026-2028 Growth Targets on 2025 Base: Operating EPS3 Free Cash Flow Same-Store System Sales1 Profit2 CAGR Per Share Sales Index YoY CAGR CAGR CAGR Mid- to High- High-single- 100-102 Double-digit% Double-digit% single-digit% digit% 1System sales exclu
Slide 32: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 32
Slide 33: ESG Ratings and Awards
ESG Ratings and Awards Industry No.1 on DJSI “Top Employer” in China Named Again to the for the 5th Year for the 8th Year "Change the World" List ✓ Industry No.1 in S&P Global 2024 ✓ 8th consecutive year of “Top ✓ The second time the Company has Corporate Sustainability Assessment Employer” recognit
Slide 34: Key ESG Initiatives
Key ESG Initiatives Food Environment People Community Food Safety as Top Priority Climate Action “People First” Philosophy Rural Revitalization End-to-end food safety and China's first restaurant Provide comprehensive One Yuan Donation - 18 quality management system company with approved near- suppo
Slide 35: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 35
Slide 36: Reconciliation of Operating Profit to Core Operating Profit
Reconciliation of Operating Profit to Core Operating Profit* (in $mn) Yum China * Current period amounts are derived by translating results at average exchange rates of the prior year period. 36
Slide 37: Reconciliation of Operating Profit to Core Operating Profit
Reconciliation of Operating Profit to Core Operating Profit (in $mn) 37
Slide 38: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) 38
Slide 39: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) 39
Slide 40: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) 40
Slide 41: Reconciliation of Return on Invested Capital (ROIC)
Reconciliation of Return on Invested Capital (ROIC) (in $mn) FY 2025 FY2024 FY2023 Calculation of adjusted net operating profit after taxes Operating Profit 1,290 1,162 Special Items - Operating Profit — — Adjusted Operating Profit 1,290 1,162 Adjustments to remove: Interest on operating lease liabi
Slide 42: About Yum China
About Yum China Largest restaurant Fortune 500 18,000+ 2,500+ company in China1 company restaurants cities in China 6 restaurant brands Vision: To be the world’s most innovative pioneer in the restaurant industry Company website: http://ir.yumchina.com Investor Relations Contact: IR@YumChina.com Tel