Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Investor Day (2025)
29 slides from Yum China's investor day presentation, 2025
Slide 1: 2025 Yum China Investor Day: Innovation & Operational Efficiency
2025 YUM CHINA INVESTOR DAY Innovation & Operational Efficiency JOEY WAT CHIEF EXECUTIVE OFFICER
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: Accelerated Expansion of Our Store Footprint
Accelerated Expansion of Our Store Footprint Over 38 Years in China 20,000 China GDP Growth Rate %1 Stores YUMC # of Stores 17,514 14% Stores 12% One of the 10,000 World’s Stores Largest QSR Operators 5,000 by Equity Stores 5.2% Store Count 1,000 Stores 2% 1987 2003 2012 2020 2025 Q3 2026E 33 Years
Slide 4: Largest Restaurant Company in the World's Largest Market
Largest Restaurant Company in the World’s Largest Market Freshly-made Top 10 players in China’s foodservice industry by system sales 1 Restaurant player Coffee/Tea player (2016 to 2024, bn RMB) 0 100 1. Data from Euromonitor 4
Slide 5: Proven Track Record of Navigating Through Cycles
Proven Track Record of Navigating Through Cycles: Resilient & Profitable Growth System Sales Index1 Restaurant Margin, % Operating Profit, $mn Diluted EPS, $ 157 15.7 1,162 2.33 100 15.2 1.35 634 2016 2024 2016 2024 2016 2024 2016 2024 System Sales Margin Operating Profit Diluted EPS ~1.6x Expansion
Slide 6: Committed to Delivering Value-for-Money
Committed to Delivering Value-for-Money Pricing Determines Survival – 定价即经营、定价定生死 Price & Transaction Index Comparison (2016=100)1 142 Total Transaction Index 113 Consumer Price Index 2 100 101 Effective Price Index 3 KFC 2016 2024 188 Total Transaction Index 100 113 Consumer Price Index 2 73 Effect
Slide 7: Build the Foundation, Then Grow
Build the Foundation, Then Grow Brand Store Procurement Food Food Safety & Quality Marketing Digital & Membership Development Store Franchise … Operation Innovation Assurance HR & Talent Finance Legal Strategy Public IT Consumer … Development Affairs Insights 7
Slide 8: People First – RGM NO.1
People First – RGM NO.1 Listen to Our People Empower Our People Care for Our People Adopt Frontline Perspectives Empower RGMs through Smart Management Comprehensive Employee Care Programs 8.3% RGM Turnover Rate Recognized for 7 Consecutive Years, 1 No.2 Overall & Top 1 in the Industry in 2025 1. RGM
Slide 9: The Best Team in the Restaurant Industry
The Best Team in the Restaurant Industry 9
Slide 10: Operational
OPERATIONAL
Slide 11: 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 11
Slide 12: Front-End Segmentation with Back-End Consolidation
Resilience Growth Moat Front-End Segmentation with Back-End Consolidation Diversified Needs & Segmented Offerings Back-End Consolidation RGMs Focus on Customer Service Emotional Value for Value Money Channels Convenience Rising Food Safety at Home Consciousness Consolidated Back- End Operations Gath
Slide 13: Drive Operational Efficiency with Back-End Synergies
Resilience Growth Moat Drive Operational Efficiency with Back-End Synergies Streamlining Centralization Best in Best in - Menu Items & Raw - Centralized Recruitment & Training Material SKUs - One-Stop RGM Service Center Class & Cost Synergy Technology - Mega RGM - Human-Machine Collaboration - Share
Slide 14: Operational Efficiency Elevated to New Heights
Resilience Growth Moat Operational Efficiency Elevated to New Heights Enhanced Store Rent Continuous Capex Marketing Efficiency Productivity Optimization Company Sales per Rent Costs as a % of Capex per Store Marketing Dollar Spent Company Sales +55% -170 bps -35% -50% 2024 VS 2016 14
Slide 15: China Continues to Boast Unparalleled Opportunities
Resilience Growth Moat China Continues to Boast Unparalleled Opportunities Unmatched Market Size Industry Upside Ahead Largest Consumer Market Dine-out Frequency on the Rise ~1.6x of US Market 1 ~3.5 ~5.5 times/week (2024, Purchasing Power Parity-Adjusted) Increase in Weekly Dine-out Frequency of Ur
Slide 16: A Long Runway for Growth Ahead
Resilience Growth Moat A Long Runway for Growth Ahead Significant Room to Deepen Lower-Tier Penetration City Presence to Almost Double as Store Model Evolves KFC Store Count Share among Top 5 QSR Players1, % Cities & Towns2 with YUMC Presence in China 1.8x 4,500+ 3,700+ 25% 15% 2,500+ 1,300+ Tier 1&
Slide 17: KFC – To Be China's 1st RMB 10bn+ Operating Profit Restaurant Chain in 2028
Resilience Growth Moat KFC – To Be China’s 1st RMB 10bn+ Operating Profit Restaurant Chain in 2028 Solid Sales Growth Legendary Classic Food & +5% System Sales Growth 2025 Q3 YTD vs 2024 Q3 YTD Non-stop Innovation Unmatched Footprint Extensive Footprints with 12,640 Flexible Models Total Store Count
Slide 18: Relentless Innovation to Unlock White Space
Resilience Growth Moat Relentless Innovation to Unlock White Space New Customers New Occasions Side-by-Side KFC KFC & Pizza Hut KFC, KCOFFEE Café & KPRO Small-Town Gemini Model – 双子星 18
Slide 19: Pizza Hut - To Double Operating Profit to over $310mn in 5 Years
Resilience Growth Moat Pizza Hut - To Double Pizza Hut Operating Profit to over $310mn in 5 Years (2024-2029)1 Footprint Milestone of Pizza Hut 4,000+ 3,000 Classic Model 1,000 1990 2013 2023 2025 ~23 years ~2 years Satellite Model WOW Model 1. 2024 as base year, excluding F/X impact 19
Slide 20: Nurturing Emerging Brands, with Lavazza Ready to Break the Ground
Resilience Growth Moat Nurturing Emerging Brands, with Lavazza Ready to Break the Ground Ready to Scale with Professional Coffee Positioning Enhance Brand Equity & Profitable Coffee Bean Retail Business & Leverage Cross-brand Synergies Side-by-Side Huang Ji Huang & Little Sheep Revamp Business Model
Slide 21: Equity/Franchise Hybrid Model as a Growth Accelerator
Resilience Growth Moat Equity/Franchise Hybrid Model as a Growth Accelerator KFC + Pizza Hut Franchised Store Count (#) 5,000+ 2,000+ ~ 7.7 % Mid-teens 1,000+ 2024 2028E Open for Franchising 500+ KFC & Pizza Hut Franchise System Sales Mix1 1999 2012 2018 2022 2025E 2028E 1. As % of Yum China’s total
Slide 22: 'Virtual Space' to Boost Customer Loyalty & Traffic Synergy
Resilience Growth Moat ‘Virtual Space’ to Boost Customer Loyalty & Traffic Synergy + Physical Stores + Virtual Space 22
Slide 23: Evolving to an Integrated & Agile Supply Chain
Resilience Growth Moat Evolving to an Integrated & Agile Supply Chain Integrated Procurement System Agile Logistics Network Dynamic Price 5,000+ Supply Chain Management Cities & Towns Coverage Capacity1 Industrial Park Spend Better & Buy Better Diversified Consumer-Centric YUMC Logistics Center Self
Slide 24: AI-Powered End-to-End Digitalization, Featuring Smart Restaurants
Resilience Growth Moat AI-Powered End-to-End Digitalization, Featuring Smart Restaurants RESTAURANT SUPPLY CHAIN CONSUMER Q-Smart Automated Auto Development Kitchen Autonomous Copilot AI Assistant Replenishment Al-Aided Bionic Equipment AI Ordering Locomotion Robotic Customer Agent Vehicles Support
Slide 25: The Path to 30,000+ Stores
The Path to 30,000+ Stores！ 2030E 2029E Store count new milestone 2028E 2026E The 1st restaurant Free cash flow1 Operating profit (vs 2024) 30,000+ chain in China to projected to Store count as reach operating profit of exceed DOUBLE Active members2 400mn+ committed in ¥ 10bn+ $1.1bn+ 2023 investor
Slide 26: Vision
To Be The World's Most Innovative Pioneer In VISION The Restaurant Industry 全球最创新的餐饮先锋 26
Slide 27: Appendix
~ ae meer | cil KFC @ ‘YumChina a BELL
Slide 28: Reconciliation of Yum China Restaurant Margin
Reconciliation of Yum China Restaurant Margin ($ mn) 2016 2024 GAAP Operating Profit 634 1,162 Less: Franchise fees and income 129 94 Revenues from transactions with franchisees and unconsolidated affiliates 299 420 Other revenues 25 138 Add: General and administrative expenses 429 568 Franchise exp
Slide 29: Reconciliation of KFC Restaurant Margin
Reconciliation of KFC Restaurant Margin ($ mn) 2025 Q3 YTD GAAP Operating Profit 1,062 Less: Franchise fees and income 62 Revenues from transactions with franchisees 51 Other revenues 3 Add: General and administrative expenses 186 Franchise expenses 28 Expenses for transactions with franchisees 44 O