Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Investor Day (2025)
32 slides from Yum China's investor day presentation, 2025
Slide 1: 2025 Investor Day
~ ga RESILIENCE (GROWTH MMIOAT (3.0) 2025 INVESTOR DAY
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements. 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
Slide 3: Key Take-Aways
Key Take-Aways No.1 WCDR Brand, Accelerate Growth Vast Untapped Market Potential Ambitious Strategy for the Future 1
Slide 4: 4,000th Store in Sanya
4,000th Store in Sanya 2
Slide 5: No.1 Western Casual Dining Restaurant in China and Accelerate Growth
No.1 Western Casual Dining Restaurant in China1 And Accelerate Growth Sustained Transaction Growth Improved Profitability +17% 11 +90bps +16% Consecutive (13.7%) (~$163mn) Quarters Same-Store Transaction Count (TC) with Positive Restaurant Margin Operating Profit 2025 Q3YTD vs. 2024 Q3YTD Same Store
Slide 6: Navigate Through Cycles With Strong Team and Trustworthy Brand
Navigate Through Cycles With Strong Team and Trustworthy Brand Team Brand Pizza Hut The Favorite Western Casual Dining Restaurant Brand in China1 1. PH Brand Image Survey, 2025 Q3 4
Slide 7: Leading Position in Multiple Categories
Leading Position in Multiple Categories1 Pizza >190mn Units Sold 2 Pasta Steak >70mn Units Sold 2 >30mn Units Sold 2 1. Frost & Sullivan, Zhaimen； 2. From 2024Q4 to 2025Q3 5
Slide 8: Strong Capabilities in Omni-Channels and Digital
Strong Capabilities in Omni-Channels and Digital Channel Expansion Digital Capability Off-premise Sales Mix Member Count Member Sales Mix 2025 ~53% 200mn+ ~58% Q3YTD 2019 – 2025 +24pt ~3X +13pt Q3YTD Growth 2019 ~29% 65mn+ ~45% Q3YTD 6
Slide 9: Vast Untapped Market Potential In Both Pizza and Burger Sectors
Vast Untapped Market Potential In Both Pizza and Burger Sectors Pizza Category: Robust Growth Momentum Burger Category: Huge Potential Ahead China Pizza Restaurant Market1 (RMB bn) Pizza and Burger 2025E Addressable Market2 (RMB bn) 4X+ 234 +10% 68 64 60 55 +5% 50 43 40 33 34 33 30 50 19 20 21 22 23
Slide 10: Broaden Coverage Across Price Ranges, Cities, Occasions, And Customers
Broaden Coverage Across Price Ranges, Cities, Occasions, And Customers Broader Price Tiers More Cities Dine-in Order Distribution by Per Person Spending on Meituan1 Number of Cities & Towns2 >90 RMB (1%) 60~90 RMB 4,500+ (1%) PH in 2019 PH in 2024 1,500+ 30~60 RMB (11%) ~1000 <30 RMB (88%) Cities wi
Slide 11: Beyond Inflection Point: 2026-28 Aspirational Goal
Beyond Inflection Point: 2026-28 Aspirational Goal1 System Sales2 CAGR Same-Store Sale Index YoY Operating Profit3 CAGR Store Units High Single Digit 100-102 Double Digit 6000+ (by 2028) Double PIZZA HUT Operating Profit In 5 Years (2029 vs 2024) 1. Three-year targets on 2025 base; 2. Excluding FX;
Slide 12: From RGM2.0 to RGM3.0
From RGM2.0 to RGM3.0 Resilience Growth Moat EFFICIENCY, cw ——_ 10
Slide 13: Long-term Strategic Priorities
Long-term Strategic Priorities Resilience Growth Moat Expand Accelerate Keep Drive Enhance Develop New Relentless Promote Restaurant New Store Elevating Delivery Digital Categories, Focus on In- “People First” Margin Development Food Taste Growth Capabilities Occasions, store Culture and Value- Chan
Slide 14: Accelerating High Quality New Store Development
Growth-Footprint Accelerating High Quality New Store Development Targeting Net New Builds 600+ Per Year, And Maintaining New Store Payback Period of 2-3 Years 6,000+ 4,000+ Total Store Count 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E Net New 41 74 235 313 409 412 400-450 600+ Per Year Bui
Slide 15: Focus on Key Levers to Accelerate New Store Development
Growth-Footprint Focus on 4 Key Levers to Accelerate New Store Development ~1000 ~3500 Where to Existing Cities with PH New Cities without PH Expand 1000 4500 Increase Density in High-Tier Cities Penetrate Lower-Tier Cities with Flexible Formats with WOW Model How to Expand Store Asset Optimization
Slide 16: Increase High-Tier Density & Penetrate Low-Tier Cities Using Flexible Formats
Growth-Footprint Increase High-Tier Density & Penetrate Low-Tier Cities Using Flexible Formats Classic Satellite WOW Dine-in for Family & Off-premise Young & Solo Diners Positioning Group Diners Consumption in Low Tier Delivery Mix Low to Mid High Low Pricing Mid-low Pricing Mid-low Pricing Everyday
Slide 17: Initial Performance of Pizza Hut WOW in Low-Tier Cities is Encouraging
Growth-Footprint Initial Performance of Pizza Hut WOW in Low-Tier Cities is Encouraging Spicy Chicken Pizza Beef Curry Rice Matcha Cake zzzzzzzzz RMB 19 RMB 21 RMB 15 WOW Capital Estimated Expenditure Payback Period Meat Lovers’ Melts Grilled Chicken Skewer Grape Cold Brew Coffee RMB 19 RMB 12 RMB 9
Slide 18: Optimize Existing Restaurant Assets
Growth-Footprint Optimize Existing Restaurant Assets Zero-based Network Planning 50%+ Stores Use New Design1 1. Refers to store designs released in past 5 years 16
Slide 19: Enhance The Core and Expand Adjacencies to Drive SSSG
Growth-SSSG Enhance The Core and Expand Adjacencies to Drive SSSG Large Party/ Small Gatherings Solo Indulgence Everyday Routine Social Events Enhance the Core Expand Adjacencies Tier 1/2 Cities Product Value Delivery New New New New Category Occasion Channel Customer Enhance the Core Tier 3 And Bel
Slide 20: Enhance The Core: Strengthen Leadership in Pizza Category
Growth-SSSG Enhance The Core: Strengthen Leadership in Pizza Category Pizza Sales Mix Pan Innovative Crust Launch of Thin-Crust Pizza (Aug.4th) Dough Innovation Flavor Innovation … Value-for-Money 2019 2023 2024 2025 2025 Before After Thin-Crust Thin-Crust 18
Slide 21: Enhance The Core: Develop Hero Products
Growth-SSSG Enhance The Core: Develop Hero Products Product Sales1 100mn USD …… 50mn USD 10mn USD …… Newly passed threshold during 24Q4-25Q3 1. 2024Q4-2025Q3 19
Slide 22: Gain Traction Through Menu Innovation and Signature Value Platform
Growth-SSSG Gain Traction Through Menu Innovation and Signature Value Platform New Key-Value-Item Menu Scream Wednesday Lower TA to Improve Value Perception -19% 93 84 75 2023 2024 2025 Q3YTD Strong Same-Store Transaction Growth Momentum 116 117 105 2023 2024 2025 Q3YTD 20
Slide 23: Drive Delivery Growth Through Key Levers
Growth-SSSG Drive Delivery Growth Through 4 Key Levers PH Delivery SSSG Improve Fundamentals Roll Out Aggregator Rider Win in Public Domain Strengthen Own Channel 2023 2024 2025E 21
Slide 24: Enhance Digital Capabilities
Growth-SSSG Enhance Digital Capabilities Milestone 200,000,000+ Members Enhance Membership Program • VIP Program Upgrade • Boost Privileged and Prepaid Card Sales via Digital Channels Enhance Private Domain • More Traffic • Exclusive Discounts • Better Experience 22
Slide 25: Expand Adjacencies: Develop New Categories, Occasions, Channels, and Customer Groups
Growth-SSSG Expand Adjacencies: Develop New Categories, New Occasions, New Channels, and New Customer Groups Burger Solo Meal Strengthen Beef Burger Build Solo Meal Value Platform Make-to-Order CDR1 Quality Enhance Value-for-Money LTO Campaigns Improve Customer Experience Takeaway IP Collaboration A
Slide 26: Expanding Restaurant Margin and Operating Profit
Resilience-Margin Expanding Restaurant Margin and Operating Profit Operating Profit (mn USD) Restaurant Margin (%) +250bps +75%+* 14.5%+ +90bps 12.0% 11.1% +34% 153 114 2019 2024 2028E 2019 2024 2028E * Excluding FX 24
Slide 27: Focus on Driving Operational Efficiency
Resilience-OPS Focus on Driving Operational Efficiency Streamlining Technology Centralization Motivation & Synergy • Menu & SKU • I-kitchen • Mega RGM • Employee incentive • Material & cooking • AI-empowered operation • Centralized recruitment, program process management and analysis training and ne
Slide 28: Relentlessly Improve Customer Experience
Moat-Experience Relentlessly Improve Customer Experience Food Speed Customer Quality of Service Satisfaction AI Inspection Average Order Guest Experience Score Passing Rate Preparation Time (min) 5-Star Rating 100% 14 90% 12 90% 10 80% 8 80% 23 24 25E 22 23 24 25E 22 23 24 25E 26
Slide 29: The Core of RGM 3.0 Strategy is RGM And The Culture
Moat-Culture The Core of R.G.M 3.0 Strategy is RGM And The Culture RGM Customer No.1 Mania 27
Slide 30: Key Take-Aways
Key Take-Aways 1 No.1 WCDR Leading Market Position Brand1, Pizza Pasta Steak #1 Hit 4,000 Accelerate WCDR Store Milestone in China 1 Growth 2 Robust Pizza Sector Growth More Cities More Occasions More Customers Vast Untapped Market Potential Youth & High Potential for Penetration 1,000 -> 4,500+ Sol
Slide 31: To Double PIZZA HUT Operating Profit In 5 Years!
To Double PIZZA HUT Operating Profit In 5 Years! 31
Slide 32: Appendix: Reconciliation of Pizza Hut Restaurant Margin
Appendix: Reconciliation of Pizza Hut Restaurant Margin ($ mn) FY19 FY24 24Q3 YTD 25Q3 YTD GAAP Operating Profit $114 $153 $139 $163 Less: Franchise fees and income 4 8 6 7 Revenues from transactions with 4 5 4 5 franchisees Other revenues 1 24 17 19 Add: General and administrative 101 110 80 79 exp