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Mar 31, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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