Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Q2 2025 Earnings Presentation
28 slides from Yum China's earnings presentation, Aug 5, 2025
Slide 1: Second Quarter 2025 Results
Second Quarter 2025 Results August 5, 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, including statements relating to our projected capital return for 2025. We intend all forward-looking s
Slide 3: Same-store Sales Growth Turned Positive
Same-store Sales Growth Turned Positive Operating Profit and OP Margin Hit New Highs in Q2 Sales Improvement Margin Expansion Solid Profit Growth System sales Same-store OP Restaurant Record Q2 OP $304mn growth1 sales growth1 Margin Margin OP / Core OP2 YoY +14% +4% +1% 10.9% 16.1% Q2 YoY Diluted EP
Slide 4: Rapid and High-quality Footprint Growth
Rapid and High-quality Footprint Growth 16,978 Total Stores >15,000 4 years Net new stores 336 in Q2 >10,000 583 in 1H 8 years >5,000 Net new unit contribution 25 years to system sales 4% in Q2 1 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 5: Capturing Growth Potential Through Flexible Store Formats and Franchising
Capturing Growth Potential Through Flexible Store Formats and Franchising Total Stores Net New Stores Penetrate More Locations Reduced Healthy New in 1H Leveraging Franchisees Strategically Average Capex1 Store Payback2 12,238 590 2,400+ ~300 ~1.4 mn RMB / store ~2 years Cities with New cities enter
Slide 6: Delivery Sales Continued to Achieve Solid Growth
Delivery Sales Continued to Achieve Solid Growth +18% +14% YoY in 1H YoY in 1H Delivery Sales +17%1 YoY in 1H ~33% ~29% • Increased exposure for our emerging ~53% ~52% ~48% businesses (e.g., KCOFFEE Cafe) and attracted new customers to core brands on ~71% ~27% delivery platforms ~29% ~10% ~10% • Dri
Slide 7: Digital Sales Exceeded $5bn in 1H 2025
Digital Sales Exceeded $5bn in 1H 2025 Strengthen Digital Sales Growth2 Member Growth Own Channels 3 4 Digital orders1 Members (mn) Member sales % 93% 63% 65% 65% 65% 89% 89% 90% 62% 86% 60% ~560 80% 525+ 52% 470+ 410+ 360+ 55% 300+ Super APP 240+ Higher digital ordering driven by increased delivery
Slide 8: KFC Continued to Achieve Solid Growth and Profitability
KFC Continued to Achieve Solid Growth and Profitability +5% +1% 14% +11% +10% System sales Same-store sales OP margin OP growth Core OP growth YoY growth YoY +90 bps YoY YoY growth YoY Q2 ` 2025 295 12,238 $292mn 16.9% Net new stores Total stores Operating profit Restaurant margin +70 bps YoY Photo:
Slide 9: Focus on Innovative Food, Great Value and Emotional Appeal
Focus on Innovative Food, Great Value and Emotional Appeal Adding Creative Twists to Our Classic Favorites Abundant Value and Emotional Engagement Zinger sales increased by 30%+ (during promotion vs. Jan-May weekly avg.) 9
Slide 10: KCOFFEE Cafe Reached 1,300 Locations
KCOFFEE Cafe Reached 1,300 Locations Expanding Dayparts: “Morning Coffee & Afternoon Tea” Photo: KFC Basketball theme store in Suzhou Olympic Sports Centre (苏州体育中心篮球店) 10
Slide 11: Pizza Hut Sustained Positive Momentum
Pizza Hut Sustained Positive Momentum +3% +2% 8.3% +16% +15% System sales Same-store sales OP margin OP growth Core OP growth YoY growth YoY +90 bps YoY YoY growth YoY Same-store transaction Q2 growth of 17% YoY 2025 95 3,864 $46mn 13.3% Net new stores Total stores Operating profit Restaurant margin
Slide 12: Introducing New Pizza Variety with Excellent Value-for-money
Introducing New Pizza Variety with Excellent Value-for-money
Slide 13: Broadening Customer Base with Wider Price Ranges and Enhanced Menu
Broadening Customer Base with Wider Price Ranges and Enhanced Menu All-You-Can-Eat Pizza Hut WOW Menu Popular IP Collaborations Japanese-style Calabria-style Spicy Spicy Chicken Pizza Mochi Dango Creamy Pasta Hokkaido-style Rich Curry Tender Spicy Chicken Lemon Black Tea Chicken Baked Rice Melts 13
Slide 14: Pizza Hut WOW Model Made Progress
Pizza Hut WOW Model Made Progress Expanding into Lower-tier Cities New WOW stores with latest Capex ranging RMB 650,000 to 850,000 Photo: Pizza Hut WOW in Huizhou Lanwan (惠州蓝湾店) 14
Slide 15: Significant Capital Returns to Shareholders
Significant Capital Returns to Shareholders Capital Returns to Shareholders1 Returned $mn FY Target2 Since Spin-off ~$5bn at least 1,200 1,490 Target $4.5bn $3bn 833 Capital Returns2 in 2024-26 in 2025-26 668 473 442 Avg. annual capital return 166 278 356 536 ~9% of market cap4 102 180 2017 2018 201
Slide 16: Appendix
Appendix 16
Slide 17: Second Quarter Grew YoY and vs 2019
Second Quarter Grew YoY and vs 2019 Second Quarter 2019 2024 2025 2025 vs 2024 2025 vs 2019 No. of Stores 8,751 15,423 16,978 +10% +94% Total Revenues ($ mn) 2,124 2,679 2,787 +4% +31% Members (mn) 210+ 495+ ~560 +13% +167% Member Sales % 52% 65% 64% (1) ppt ~ +12ppt Operating Profit ($ mn) 204 266
Slide 18: Sales and Profit Grew YoY in Second Quarter
Sales and Profit Grew YoY in Second Quarter Revenue/Sales YoY Total Revenue ($bn) 2.68 2.79 Key factors for Revenue year-over-year change Revenue growth (reported) +4% + Net new unit contribution Revenue growth (ex F/X) +4% + Same-store sales growth System sales growth +4% 24'Q2 25'Q2 Operating Prof
Slide 19: Second Quarter Key Performance Highlights – KFC & Pizza Hut
Second Quarter Key Performance Highlights – KFC & Pizza Hut Digital 25’Q2 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 +5% +1% Even +1% 45% 72% 520+ 65% 94%
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 China's first restaurant Provide comprehensive One Yuan Donation - 18 quality management system company with approved near- suppo
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 156
Slide 22: YUM China's Distinct Competitive Advantages
YUM China’s Distinct Competitive Advantages Resilience Tremendous Significant and growth capital returns profitability potential to shareholders Sustained strong Target 20,000 stores Target to return momentum 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 Quarter ended % Change Year to Date Ended % Change 6/30/2025 6/30/2024 B/(W) 6/30/2025 6/30/2024 B/(W) Reconciliation of Operating Profit to Core Operating Profit Operating Profit $ 304 $ 266 14 $ 703 $ 640 10 Special It
Slide 24: Reconciliation of Operating Profit to Core Operating Profit
Reconciliation of Operating Profit to Core Operating Profit (in $mn) KFC Quarter Ended Year to Date Ended 6/30/2025 6/30/2024 6/30/2025 6/30/2024 GAAP Operating Profit $ 292 $ 264 $ 678 $ 636 Special Items, Operating Profit — — — — Adjusted Operating Profit $ 292 $ 264 $ 678 $ 636 Items Affecting Co
Slide 25: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) Yum China Quarter Ended Year to Date Ended 6/30/2025 6/30/2024 6/30/2025 6/30/2024 GAAP Operating Profit $ 304 $ 266 $ 703 $ 640 Less: Franchise fees and income 24 22 51 47 Revenues from transactions with franchisees 115 96 236 203 Oth
Slide 26: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) KFC Quarter Ended Year to Date Ended 6/30/2025 6/30/2024 6/30/2025 6/30/2024 GAAP Operating Profit $ 292 $ 264 $ 678 $ 636 Less: Franchise fees and income 19 16 40 34 Revenues from transactions with franchisees 17 12 33 26 Other revenu
Slide 27: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) Pizza Hut Quarter Ended Year to Date Ended 6/30/2025 6/30/2024 6/30/2025 6/30/2024 GAAP Operating Profit $ 46 $ 40 $ 106 $ 87 Less: Franchise fees and income 2 2 4 4 Revenues from transactions with franchisees 1 1 3 2 Other revenues 6
Slide 28: About Yum China
About Yum China Largest restaurant Fortune 500 16,000+ 2,400+ 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