Yum China Q1 Earnings Call Highlights

3 weeks ago 16

MarketBeat

Wed, April 29, 2026 astatine 7:37 AM CDT 8 min read

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Key Points

Yum China reported Q1 gross up 10% and operating nett up 12% (6% ex‑FX), with operating nett borderline expanding 20 ground points and same‑store income astir level portion transactions grew for the 13th consecutive quarter.
The institution opened 636 nett caller stores successful Q1, is connected way to unfastened much than 1,900 nett caller stores successful 2026 and surpass 20,000 full stores, driven by franchise contributions and accelerated rollouts of Pizza Hut WOW, KCOFFEE and KPRO formats.
Delivery premix roseate to 54% from 42%, expanding rider and labour costs and trimming edifice borderline 40 bps, but operating nett reached a Q1 grounds of $447 cardinal and absorption reiterated full‑year targets and a program to instrumentality $1.5 billion to shareholders (including $316 cardinal returned successful Q1).
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Yum China (NYSE:YUMC) executives said the institution delivered “solid results successful a dynamic environment” successful the archetypal 4th of 2026, citing continued execution of its RGM 3.0 strategy and accelerated store enlargement portion keeping a absorption connected some same-store income and strategy income growth.

First-quarter show and marque results

CEO Joey Wat said first-quarter gross roseate 10% and operating nett accrued 12% successful reporting currency, aided by a favorable overseas speech impact. Excluding overseas exchange, she said strategy income grew 4%, operating nett accrued 6%, and operating nett borderline expanded 20 ground points twelvemonth implicit year. Wat added that same-store income were “slightly positive, though rounded to zero,” portion same-store transactions grew for the 13th consecutive quarter.

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By brand, Wat said KFC “remained resilient,” with same-store income up 1% for a 4th consecutive quarter, strategy income up 5%, and edifice borderline astatine 19.1%. She said Pizza Hut continued to turn some standard and profitability, delivering 18% operating nett maturation successful reporting currency, with edifice borderline improving 60 ground points twelvemonth implicit twelvemonth to 15%.

Store expansion, franchising, and caller formats

Management emphasized a grounds gait of development. The institution opened 636 nett caller stores successful the quarter—more than one-third of its full-year target—putting it connected way to unfastened much than 1,900 nett caller stores successful 2026 and to surpass 20,000 full stores during the year.

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The institution said franchisees contributed 42% of KFC and Pizza Hut nett caller stores successful the quarter, helping widen the footprint into lower-tier cities, distant areas, and strategical locations. The franchise portfolio exceeded 2,500 stores astatine quarter-end, up from astir 1,800 a twelvemonth earlier.

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