Loading...
•
Mar 31
Yum China Q1 2025 Earnings Report
Yum China posted a steady Q1 performance with growth in revenue, net income, and EPS despite a challenging environment.
Key Takeaways
Yum China reported revenue of $3.0 billion and net income of $292 million in Q1 2025. Same-store sales returned to prior-year levels for the first time since Q1 2024. Digital and delivery channels continued to perform strongly, while restaurant margins expanded across both KFC and Pizza Hut.
Same-store sales reached 100% of prior-year levels, marking full recovery since Q1 2024.
Digital ordering accounted for 93% of total company sales.
Restaurant margin expanded by 100 basis points to 18.6%.
Delivery contributed 42% of total company sales.
Yum China
Yum China
Yum China Revenue by Segment
Yum China Revenue by Geographic Location
Revenue by Segment
KFC Revenue
CapyFin.comPizza Hut Revenue
CapyFin.comAll Other Segments Revenue
CapyFin.comRevenue by Geographic Location
China Revenue
CapyFin.com Forward Guidance
Yum China remains committed to its full-year targets with emphasis on innovation, operational efficiency, and strategic store expansion.
Positive Outlook
- Planned 1,600 to 1,800 net new store openings in 2025.
- Capital expenditures targeted between $700M to $800M.
- Continued focus on innovative formats like KCOFFEE and WOW stores.
- Strong digital and delivery momentum to support growth.
- Plan to return $3B to shareholders over 2025–2026.
Challenges Ahead
- Challenging macroeconomic environment in China.
- Wage inflation and rising rider delivery costs.
- Decline in average ticket size due to pricing strategy.
- One fewer business day in Q1 2025 compared to Q1 2024.
- Ongoing pressure from foreign exchange volatility.