Yum China (YUMC) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 4, 2026 astatine 10:04 AM CDT 32 min read

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Date

Wednesday, April 29, 2026 astatine 7 a.m. ET

Call participants

• Chief Executive Officer — Joey Wat

• Chief Financial Officer — Adrian Ding

• Chief Communications Officer — Florence Lip

Full Conference Call Transcript

Joey Wat: Hello, everyone, and convey you for joining us. Once again, we delivered coagulated results successful a dynamic environment, reflecting the palmy execution of our RGM 3.0 strategy, which balances resilience, maturation and moat. In 4th 1, gross grew 10% and operating nett accrued 12% successful reporting currency, supported by a affirmative overseas speech impact. We opened 636 nett caller stores, much than 1/3 of our afloat twelvemonth people and up of schedule. Even arsenic we accelerated store enlargement to seizure marketplace opportunities, we maintained a dual absorption connected same-store income maturation and strategy income growth. Same-store income maturation was somewhat positive, though rounded to 0. Same-store transaction grew for the 13th consecutive quarter.

Excluding overseas speech impact, strategy income grew 4%, operating nett accrued 6% and operating nett borderline expanded 20 ground points year-over-year. This marks the eighth consecutive 4th successful which we delivered maturation crossed each 3 metrics astatine the aforesaid time. By brand, KFC remained resilient. Same-store income grew 1%, the 4th consecutive 4th of growth. System income accrued by 5% and edifice margins remained precise steadfast astatine 19.1%. Pizza Hut continued to turn successful standard and profitability, delivering 18% operating nett maturation connected apical of 27% maturation successful 4th 1 past year, some successful reporting currency. Same-store transactions grew for the 13th consecutive quarter, portion edifice margins improved 60 ground points year-over-year to 15%.

I would similar to accidental a large convey you to our squad for delivering coagulated results successful this fast-changing environment. We support a beardown absorption connected innovation and operational efficiency. Let maine stock a fewer updates connected our cardinal initiatives, and past I volition manus it implicit to Adrian to spell done our results successful much detail. It ever begins with bully nutrient and large value. During Chinese New Year, we offered a wide scope of options to cater to some radical gatherings and solo diners. At KFC, successful summation to our signature Golden Bucket, we launched classical constricted clip offers LTOs specified arsenic Shrimp Burger, beef wrapper and Win Bucket to thrust further traffic.

Building connected past year's hugely palmy LTO campaign, Crackling Golden Chicken Wings became the archetypal caller imperishable merchandise we introduced during CNY to our menu. KFC's innovative side-by-side modules are scaling rapidly, delivering meaningful incremental income and profit. KCOFFEE Cafes are present successful implicit 2,600 locations and KPRO successful much than 280 locations. KCOFFEE Cafe generated astir mid-single-digit income uplift and KPRO astir 20% to their genitor KFC stores successful 4th 1. Our user insights assistance america place user needs and our front-end segmentation and back-end consolidation attack assistance america conscionable these needs efficaciously by sharing resources with the genitor stores. These modules cross-sell existing members and necessitate acold little concern and operating costs, making them charismatic concern models.