Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Q1 2026 Earnings Presentation
31 slides from Yum China's earnings presentation, Apr 29, 2026
Slide 1: First Quarter 2026 Results
First Quarter 2026 Results April 29, 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: Solid Q1 Results: Eight Consecutive Quarters of System Sales Growth, OP Growth, and OP Margin Expansion
Solid Q1 Results: Eight Consecutive Quarters of System Sales Growth, OP Growth, and OP Margin Expansion Solid Sales Resilient OP Margin Robust Profit Growth System Sales Revenue OP Restaurant Operating Core Operating Growth1 Growth Margin Margin Profit Profit2 +4% +10% 13.7% 18.2% +12% +6% Q1 YoY Q1
Slide 4: Strong Momentum in Footprint Growth with Record Quarterly Net New Openings
Strong Momentum in Footprint Growth with Record Quarterly Net New Openings Total Stores 18,737 Net new stores >15,000 636 in Q1 4 years ~33% of full year target >10,000 8 years Targets >5,000 • To reach 20,000+ stores by 2026 25 years • To reach 30,000+ stores by 2030 1995 1988 1990 1992 1987 1989 1
Slide 5: Accelerated Expansion Through Diverse Store Formats and Franchising
Accelerated Expansion Through Diverse Store Formats and Franchising Total Stores Net New Stores Reduced Healthy New Penetrating More Cities in Q1 Average Capex Store Payback3 13,454 457 2,600+ 310 ~1.3 mn 1 RMB / store ~2-3 years Cities with New cities entered 16% Franchise 38% Franchise (From ~1.5
Slide 6: Balanced Delivery Strategy: Driving Sales Growth While Mitigating Margin Impact
Balanced Delivery Strategy: Driving Sales Growth While Mitigating Margin Impact +33% +25% YoY in Q1 YoY in Q1 Delivery Sales +31%1 YoY in Q1 • Delivery mix increased by 12ppts YoY to ~29% ~24% 54% in Q1, driving top-line growth while ~42% ~53% ~48% margin impact was mitigated through our ~21% ~71% b
Slide 7: KFC Continued to Deliver Solid Growth and Margins
KFC Continued to Deliver Solid Growth and Margins +5% 457 $417mn 17.0% System Sales Net New Operating Profit OP Margin Growth YoY Stores 55% higher than Q1 Q1 2025 2026 101% 13,454 +8% +3% 19.1% Same-Store Total Stores OP Growth Core OP Restaurant Sales Index YoY Growth YoY Margin 4 consecutive quar
Slide 8: Great Tasting and Innovative Products at Affordable Prices
Great Tasting and Innovative Products at Affordable Prices Drive Repeat Purchases and Attract New Customers Bring Back Value Offering Via Highly Innovate on Our Hero Products Classic LTOs Selective Delivery Channels Crackling Golden Chicken Wings Spicy Beef Wrap with Dried Celtuce 8
Slide 9: KCOFFEE Cafe to Reach 5,000 Locations by 2027
KCOFFEE Cafe to Reach 5,000 Locations by 2027 Two Years Ahead of Schedule Total Locations in Q1 • Q1 total sales >2x YoY; daily cups sold per store increased YoY • Unique food and drinks leveraging equipment of KFC stores 2,600+ • Generated mid-single digit sales uplift to parent KFC stores Longjing
Slide 10: KPRO Rolled Out to 280 Locations
KPRO Rolled Out to 280 Locations Year-End Target Raised to 600 Locations, Up by 200 • Great tasting light meals at affordable prices • Side-by-side module facilitates cross-selling and sharing of resources • Contributed around 20% sales uplift to parent KFC stores Photo: Beijing Songjiazhuang store
Slide 11: Pizza Hut Accelerated Store Openings, Expanded Margins, and Delivered Double-Digit OP Growth
Pizza Hut Accelerated Store Openings, Expanded Margins, and Delivered Double-Digit OP Growth +4% 207 $71 mn 11.2% System Sales Net New Operating Profit OP Margin Growth YoY Stores +110 bps YoY ~50% of 2025 8 consecutive quarters Q1 full-year openings of OP margin expansion 2026 99% 4,375 +18% +12% 1
Slide 12: Refreshed Spring Menu in April
Refreshed Spring Menu in April with Over 30 New Dishes 12
Slide 13: Increase Traffic with Innovation, Emotional Appeal, and Value
Increase Traffic with Innovation, Emotional Appeal, and Value Value Offering Via Highly New Products Added in IP Collaboration Selective Delivery Channels Signature All-You-Can-Eat 13
Slide 14: WOW Store Count Doubled YoY to ~390
WOW Store Count Doubled YoY to ~390 Model Opens up Opportunities in Lower-tier Cities Durian & Pineapple Pizza Spicy Pepper Butterfly Drumettes Tea of 'Shui Xian' Da Hong Pao ￥59 (Regular Size) / ￥35 (Small Size) ￥29 (5 Pc.) / ￥19 (3 Pc.) ￥9.9 • Model with lower capex and simpler operations. • Healt
Slide 15: On Track to Return $1.5Bn to Shareholders in 2026
On Track to Return $1.5Bn to Shareholders in 2026, Around 9% of Market Capitalization1 Capital Returns to Shareholders in 2017-2026Q12 Target Capital Returns Increase in Quarterly in 2024-263 Cash Dividends $6 bn+ since spin-off $1.5 bn +21% In $mn Each year To $0.29 in Q1 2026 1,490 1,489 2027 & Be
Slide 16: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 16
Slide 17: First Quarter Grew YoY and vs 2019
First Quarter Grew YoY and vs 2019 First Quarter 2019 2025 2026 2026 vs 2025 2026 vs 2019 No. of Stores 8,653 16,642 18,737 +13% +117% Total Revenues ($ mn) 2,304 2,981 3,271 +10% +42% Member Sales % 47% 66% 55% (11) ppt +8 ppt Operating Profit ($ mn) 303 399 447 +12% +48% OP Margin (% of revenue) 1
Slide 18: Sales and Profit Grew YoY in First Quarter
Sales and Profit Grew YoY in First Quarter Revenue/Sales YoY Total Revenue ($bn) 3.27 Key factors for Revenue year-over-year change 2.98 Revenue growth (reported) +10% + Net new unit contribution Revenue growth (ex F/X) +4% + Same-store sales growth System sales growth +4% + Foreign exchange impact
Slide 19: First Quarter Key Performance Highlights – KFC & Pizza Hut
First Quarter Key Performance Highlights – KFC & Pizza Hut 26’Q1 YoY Sales Growth Channel Mix Digital orders System Same-store Same-store Average Total off- Sales sales transactions ticket Delivery Sales % premise YoY YoY YoY YoY +5% +1% +1% (1)% 55% 76% 95% 26’Q1 RMB 39 Stable 25’Q1 RMB 40 +4% (1)%
Slide 20: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 20
Slide 21: 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 21
Slide 22: 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 23: 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 24: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 24
Slide 25: ESG Ratings and Awards
ESG Ratings and Awards Industry No.1 on DJSI “Top Employer” in China One of the Most Sustainable for the 6th Year for the 8th Year Companies by TIME ✓ Industry No.1 in S&P Global 2025 ✓ 8 consecutive years of “Top ✓ TIME World's Best Companies of Corporate Sustainability Assessment Employer” recogni
Slide 26: 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 27: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 27
Slide 28: Reconciliation of Operating Profit to Core Operating Profit
Reconciliation of Operating Profit to Core Operating Profit* (in $mn) Yum China Quarter Ended % Change 3/31/2026 3/31/2025 B/(W) Operating Profit $ 447 $ 399 12 Special Items, Operating Profit — — Adjusted Operating Profit $ 447 $ 399 12 Items Affecting Comparability — — F/X impact (24) — Core Opera
Slide 29: Reconciliation of Operating Profit to Core Operating Profit
Reconciliation of Operating Profit to Core Operating Profit (in $mn) KFC Pizza Hut Quarter Ended Quarter Ended 3/31/2026 3/31/2025 3/31/2026 3/31/2025 GAAP Operating Profit $ 417 $ 386 $ 71 $ 60 Special Items, Operating Profit — — — — Adjusted Operating Profit $ 417 $ 386 $ 71 $ 60 Items Affecting C
Slide 30: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) Yum China KFC Pizza Hut Quarter Ended Quarter Ended Quarter Ended 3/31/2026 3/31/2025 3/31/2026 3/31/2025 3/31/2026 3/31/2025 GAAP Operating Profit $ 447 $ 399 $ 417 $ 386 $ 71 $ 60 Less: Franchise fees and income 30 27 23 21 3 2 Reven
Slide 31: About Yum China
About Yum China Largest restaurant Fortune 500 18,000+ 2,600+ 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