Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Q1 2025 Earnings Presentation
26 slides from Yum China's earnings presentation, Apr 30, 2025
Slide 1: First Quarter 2025 Results
First Quarter 2025 Results Apr 30, 2025 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. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Sec
Slide 3: Same-store Sales Hit a Key Milestone, and Margins Expanded in Q1
Same-store Sales Hit a Key Milestone, and Margins Expanded in Q1 Solid Sales Margin Expansion Robust Profit Growth System sales Same-store OP Restaurant Operating Core Operating growth1 sales index1 Margin Margin Profit Profit2 +7% +8% +2% 100% 13.4% 18.6% Q1 YoY Q1 YoY Of 2024 level Diluted EPS One
Slide 4: Maintaining Strong Momentum in Footprint Growth
Maintaining Strong Momentum in Footprint Growth 16,642 Total Stores >15,000 Net new stores 4 years 247 in Q1 >10,000 Net new unit contribution to systems sales 8 years 4% in Q1 >5,000 Targets 25 years • To open 1,600-1,800 Net New Stores in 2025 • To reach 20,000 stores 1 by 2026 1987 1988 1989 1990
Slide 5: High-Quality Expansion to Seize Significant Growth Opportunities
High-Quality Expansion to Seize Significant Growth Opportunities Total Stores Net New Stores Unlock underserved markets Reduced Healthy New in Q1 with flexible models Average Capex2 Store Payback3 11,943 295 2,300+ ~700 ~56% ~1.5 mn RMB / store ~2 years Cities with Cities without Total stores 13% Fr
Slide 6: Continued to Achieve Double-Digit Delivery Sales Growth
Continued to Achieve Double-Digit Delivery Sales Growth +13% +13% YoY in Q1 YoY in Q1 Delivery • Sales grew 13%1 YoY in Q1 ~32% ~29% • Sequentially grew market shares on delivery ~53% ~53% ~48% platforms ~71% ~28% Takeaway ~29% ~10% ~10% • Ratio remained relatively stable ~29% ~5% ~39% ~43% ~37% ~42
Slide 7: Digital Sales Reached $2.6bn in Q1
Digital Sales Reached $2.6bn in Q1 Digital Sales Growth2 Member Growth Digital orders1 Members (mn) 3 Member sales %4 93% 65% 65% 66% 89% 89% 90% 63% 62% 86% 60% 80% 525+ 540+ 52% 470+ 410+ 55% 360+ 300+ 240+ Higher digital ordering driven by increased delivery mix 2019 2020 2021 2022 2023 2024 2025
Slide 8: KFC Continued to Achieve Solid Growth and Profitability
KFC Continued to Achieve Solid Growth and Profitability +3% 295 17.2% $386mn System sales Net new stores OP margin Operating profit growth YoY +50bps YoY Q1 ` 2025 100% 11,943 19.8% +4% +5% Same-store Total stores Restaurant margin OP growth Core OP sales index YoY Growth YoY +50bps YoY Same-store t
Slide 9: Innovating Classics and Broadening Appeal for Smaller Gatherings
Innovating Classics and Broadening Appeal for Smaller Gatherings Extended New Offerings of Hero Categories Widened Options to Capture Smaller Party Needs Spicy Flavor of Original Recipe Chicken Golden Bucket Golden Bucket Smaller Bucket Golden Featuring Spicy Flavor of Bucket Original Recipe Chicken
Slide 10: KCOFFEE Cafe Reached the Milestone of 1,000 Locations
KCOFFEE Cafe Reached the Milestone of 1,000 Locations Expanding dayparts and boosting afternoon sales Photo: KCOFFEE Cafe in Chengdu Leading Center（成都领地中心店） 10
Slide 11: Pizza Hut Sustained Positive Momentum
Pizza Hut Sustained Positive Momentum +2% 45 10.1% $60mn System sales Net new stores OP margin Operating profit growth YoY +220bps YoY Q1 2025 100% 3,769 14.4% +27% +29% Same-store Total stores Restaurant margin OP growth Core OP growth sales index YoY YoY +190bps YoY Same-store transaction growth o
Slide 12: Enhancing Menu Appeal with Iconic Flavor and Widening Price Range
Enhancing Menu Appeal with Iconic Flavor and Widening Price Range
Slide 13: Expanding One-person Meal Options and Entry-Price Menu Variety
Expanding One-person Meal Options and Entry-Price Menu Variety Pizza Dough Burger Pizza Hut WOW Menu One-person Meal Da Hong Pao Japanese-style Lemon Black Tea 超至披萨风味汉堡 Oolong Tea Mochi Dango Super Supreme Burger 芝士和牛至尊堡 一人食主食小食随心选 Golden Crispy Wagyu Beef Cheese Burger Cheesy Baked Corn Potato Latt
Slide 14: Pizza Hut WOW Model Potentially Suitable for Expansion into Lower-tier Cities
Pizza Hut WOW Model Potentially Suitable for Expansion into Lower-tier Cities Capex can be as low as half of a regular Pizza Hut store Photo: Pizza Hut WOW in Zhuhai Pingsha (珠海平沙店) 14
Slide 15: Significant Capital Returns to Shareholders
Significant Capital Returns to Shareholders Capital Returns to Shareholders1 Target capital returns2 Net Cash3 $4.5bn $3bn $2.8bn $mn $4.7bn since spin-off in 2024-26 in 2025-26 by end of Mar 2025 1,490 Avg. annual amount ~9% of market cap4 1 Quarterly Cash Dividends 833 473 442 668 $0.16 $0.24 +50%
Slide 16: Appendix
Appendix 16
Slide 17: First Quarter Grew YoY and vs 2019
First Quarter Grew YoY and vs 2019 First Quarter 2019 2024 2025 2025 vs 2024 2025 vs 2019 No. of Stores 8,653 15,022 16,642 +11% +92% Total Revenues ($ mn) 2,304 2,958 2,981 +1% +29% Members (mn) 195+ ~485 540+ +11% +177% Member Sales % 47% 65% 66% +1ppt +19ppt Operating Profit ($ mn) 303 374 399 +7
Slide 18: Sales and Profit Grew YoY in First Quarter
Sales and Profit Grew YoY in First Quarter Revenue/Sales YoY Total Revenue ($bn) Key factors for Revenue year-over-year change 2.96 2.98 Revenue growth (reported) +1% + Net new unit contribution − One fewer business day in 2025 Revenue growth (ex F/X) +2% − Foreign exchange impact System sales growt
Slide 19: First Quarter Key Performance Highlights – KFC & Pizza Hut
First Quarter Key Performance Highlights – KFC & Pizza Hut Digital 25’Q1 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 +3% Even +4% (4)% 43% 71% 505+ 67% 92%
Slide 20: 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 Committed to 2050 net-zero Provide comprehensive One Yuan Donation - 18 quality management system GHG emissions support to ensure
Slide 21: ESG Ratings and Awards
ESG Ratings and Awards “China Top Employer” for the 7th Year, Industry No.1 on DJSI for the 5th Year #2 in China Industry No.1 in S&P Global 2024 Corporate #1 in the restaurant Sustainability Assessment industry for the 4th year The only Mainland China #2 in China, among consumer services 15
Slide 22: YUM China's Distinct Competitive Advantages
YUM China’s Distinct Competitive Advantages Resiliency Tremendous Significant and growth capital returns profitability potential to shareholders Outperformed the Target 20,000 stores Target to return industry in good by 2026 ~$4.5bn in times and bad 2024-20261 Commitment to Building Long-lasting Exc
Slide 23: 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. 23
Slide 24: Reconciliation of Operating Profit to Core Operating Profit
Reconciliation of Operating Profit to Core Operating Profit (in $mn) 24
Slide 25: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) 25
Slide 26: About Yum China
About Yum China Largest restaurant Fortune 500 16,000+ 2,300+ 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