Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Q2 2026 Earnings Presentation
34 slides from Yum China's earnings presentation, Jul 30, 2026
Slide 1: Second Quarter 2026 Results
Second Quarter 2026 Results July 30, 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: Strong Q2 Results: Ninth Consecutive Quarter of System Sales Growth
Strong Q2 Results: Ninth Consecutive Quarter of System Sales Growth, OP Growth and OP Margin Expansion Strong Sales Resilient Margins Strong Profit Growth System Sales Revenue OP Restaurant Record Q2 OP $348mn Growth1 Growth Margin Margin Operating Core Operating +6% +13% 11.1% 16.1% Profit Profit2
Slide 4: Strong Momentum in Footprint Growth; Record Net New Openings in 1H 2026
Strong Momentum in Footprint Growth; Record Net New Openings in 1H 2026 Total Stores 19,297 Net new stores >15,000 560 in Q2 4 years 1,196 in 1H >10,000 (~63% of full year target) 8 years >5,000 Targets • To reach 20,000+ 25 years stores by 2026 • To reach 30,000+ stores by 2030 1987 1988 1989 1990
Slide 5: Accelerated Expansion Across Equity and Franchise Stores Through Diverse Store Formats
Accelerated Expansion Across Equity and Franchise Stores Through Diverse Store Formats Total Stores Net New Stores Reduced Healthy New Penetrating More Cities in 1H Average Capex Store Payback3 13,789 792 2,700+ 330+ ~1.2 mn 1 RMB / store ~2-3 years Cities with New cities entered 17% Franchise 41% F
Slide 6: Balanced Delivery Strategy: Driving Sales Growth While Mitigating Margin Impact
Balanced Delivery Strategy: Driving Sales Growth While Mitigating Margin Impact +26% +26% YoY in Q2 YoY in Q2 Delivery Sales +26%1 YoY in Q2 Restaurant 16.9% 17.1% 13.3% 12.9% Margin • Delivery mix increased by 9ppts YoY ~29% ~25% to 54% in Q2 ~42% ~48% • Driving top-line growth while margin ~21% im
Slide 7: KFC Delivered Strong Sales Growth and Expanded Margins
KFC Delivered Strong Sales Growth and Expanded Margins +7% 335 +14% +7% 14.2% System Sales Net New Stores OP Growth Core OP OP Margin Growth YoY YoY Growth YoY +20 bps YoY Q2 2026 +1% 13,789 $332mn 17.1% Same-Store Sales Total Stores Operating Profit Restaurant Margin Growth YoY +20 bps YoY 5th cons
Slide 8: Platform Innovation Drives Strong Sales and Repeat Purchases
Platform Innovation Drives Strong Sales and Repeat Purchases “Zinger” Platform “Whole Chicken” Platform “Wings” Platform More Fragrant, Spicier Aromatic Paper-Wrapped Roasted New Crackling Salted Egg Yolk 8
Slide 9: KCOFFEE Cafe Targets RMB ~2bn Sales in 2026 and 5,000 Locations by 2027
KCOFFEE Cafe Targets RMB ~2bn Sales in 2026 and 5,000 Locations by 2027 Total Locations • Delivered mid-single-digit sales uplift to parent KFC stores 3,300+ • Module showing solid margin improvement • Enriched non-coffee offerings including tea and food options by the end of Q2 Iced Americano Passi
Slide 10: KPRO Year-End Target Raised to 800 Locations, Up from 600
KPRO Year-End Target Raised to 800 Locations, Up from 600 Total Locations • Delivered ~20% sales uplift to parent KFC stores 450+ • • Module showing solid margin improvement Expanding into Tier 1, 2 and select lower-tier cities by the end of Q2 • Target sales to quadrupled YoY in 2026 and reach RMB
Slide 11: Pizza Hut Same-Store Sales Grew 1% YoY in Q2; OP Margin Expanded
Pizza Hut Same-Store Sales Grew 1% YoY in Q2; OP Margin Expanded by 60 bps YoY in First Half 2026 +6% 174 +11% +5% 8.3% System Sales Net New Stores OP Growth Core OP OP Margin Growth YoY YoY Growth YoY Flat YoY +60bps YoY in Q2 1H’26 2026 +1% 4,549 $51 mn 12.9% Same-Store Sales Total Stores Operatin
Slide 12: Newly-Launched Multi-Grain Crust Became Our Best-Seller in June
Newly-Launched Multi-Grain Crust Became Our Best-Seller in June 12
Slide 13: Strengthening the Core While Unlocking New Growth Drivers
Strengthening the Core While Unlocking New Growth Drivers Enriched Protein Platforms to New Multi-Grain Crust Pizzas to New Pizza Hut Burgers Enhance Dine-In Experience Capture Lighter Meal Occasions at Great Prices Pizza Hut Burger Category Targets RMB 1bn+ Sales in 2026 13
Slide 14: Pizza Hut Burger Bar Expanded to 200+ Locations
Pizza Hut Burger Bar Expanded to 200+ Locations, Driving Double-Digit Incremental Sales to Parent Stores • Tight menu centered on made-to-order burgers • Great taste, amazing value for money and quick-service convenience • Utilize space in existing stores with light investment Patties Straight Off •
Slide 15: Acquisition of the Pizza Hut Brand in Mainland China Expected to Close in August 2026
Acquisition of the Pizza Hut Brand in Mainland China Expected to Close in August 2026 • In the near term, expect the savings in license fee to enhance store economics and lower the threshold for new store openings. More potential new stores are expected to meet our payback requirements of 2-3 years.
Slide 16: On Track to Return $1.5Bn to Shareholders in 2026
On Track to Return $1.5Bn to Shareholders in 2026, Around 10% of Market Capitalization1 Capital Returns to Shareholders in 2017-20261H2 Target Capital Increase in Quarterly Returns in 2024-263 Cash Dividends ~$6.7 bn since spin-off $1.5 bn +21% In $mn Each year To $0.29 in Q1 2026 1,490 1,489 2027 &
Slide 17: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 17
Slide 18: Second Quarter Grew YoY and vs 2019
Second Quarter Grew YoY and vs 2019 Second Quarter 2019 2025 2026 2026 vs 2025 2026 vs 2019 No. of Stores 8,751 16,978 19,297 +14% +121% Total Revenues ($ mn) 2,124 2,787 3,138 +13% +48% Member Sales % 52% 64% 55% (9) ppt +3 ppt Operating Profit ($ mn) 204 304 348 +14% +70% OP Margin (% of revenue)
Slide 19: Sales and Profit Grew YoY in Second Quarter
Sales and Profit Grew YoY in Second Quarter Revenue/Sales YoY Total Revenue ($bn) Key factors for Revenue year-over-year change 3.14 2.79 Revenue growth (reported) +13% + Net new unit contribution Revenue growth (ex F/X) +6% + Same-store sales growth System sales growth +6% + Foreign exchange impact
Slide 20: Second Quarter Key Performance Highlights – KFC & Pizza Hut
Second Quarter Key Performance Highlights – KFC & Pizza Hut 26’Q2 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 +7% +1% +4% (3)% 54% 75% 94% 26’Q2 RMB 36 Mainly due to incremental 2
Slide 21: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 21
Slide 22: 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 22
Slide 23: 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 24: 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 25: Appendix
Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures 25
Slide 26: ESG Ratings and Awards
ESG Ratings and Awards Industry No.1 on S&P Global “Top Employer” in China One of the Most Sustainable CSA 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 Employe
Slide 27: 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 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: 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 6/30/2026 6/30/2025 B/(W) 6/30/2026 6/30/2025 B/(W) Operating Profit $ 348 $ 304 14 $ 795 $ 703 13 Special Items, Operating Profit — — — — Adjusted Operating Profit $ 34
Slide 30: 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 6/30/2026 6/30/2025 6/30/2026 6/30/2025 GAAP Operating Profit $ 332 $ 292 $ 749 $ 678 Special Items, Operating Profit — — — — Adjusted Operating Profit $ 332 $ 292 $ 749 $ 678 Items Affecting Co
Slide 31: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) Yum China Quarter ended Year to Date Ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 GAAP Operating Profit $ 348 $ 304 $ 795 $ 703 Less: Franchise fees and income 29 24 59 51 Revenues from transactions with franchisees 155 115 311 236 Ot
Slide 32: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) KFC Quarter ended Year to Date Ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 GAAP Operating Profit $ 332 $ 292 $ 749 $ 678 Less: Franchise fees and income 24 19 47 40 Revenues from transactions with franchisees 19 17 38 33 Other revenu
Slide 33: Reconciliation of Operating Profit to Restaurant Profit
Reconciliation of Operating Profit to Restaurant Profit (in $mn) Pizza Hut Quarter ended Year to Date Ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 GAAP Operating Profit $ 51 $ 46 $ 122 $ 106 Less: Franchise fees and income 3 2 6 4 Revenues from transactions with franchisees 3 1 5 3 Other revenues 3
Slide 34: About Yum China
About Yum China Largest restaurant Fortune 500 19,000+ 2,700+ 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