Yum China : Presentation (db7b330a c837 4c0a 8873 69f67822250a)

Published: 2026-04-29 06:07:07 ET YUMC

Published on 04/29/2026 at 06:07 am EDT

First Quarter 2026 Results

April 29, 2026

NYSE: YUMC and HKEX: 9987

Solid Q1 Results: Eight Consecutive Quarters of

System Sales Growth, OP Growth, and OP Margin Expansion

Solid Sales

Resilient OP Margin

Robust Profit Growth

Margin

13.7%

+30 bps

Restaurant Margin

18.2%

-40 bps

Q1 YoY

8 consecutive quarters of

YoY OP margin expansion

Operating Profit

+12%

Core Operating Profit2

+6%

Q1 YoY

Diluted EPS Grew to $0.87

+13%

+11%

Excl. F/X & mark-to-

market impact

Q1 YoY

System Sales Growth1

+4%

Q1 YoY

Revenue

Growth

+10%

Same-Store Sales Index1

100%

Of 2025 Q1 level

13 consecutive quarters of

Same-store transaction growth

1 Excludes the impact of foreign exchange ("F/X").

2 Core Operating Profit is defined as Operating Profit adjusted for Special Items, further excluding Items Affecting Comparability and the impact of F/X. The Company uses Core Operating Profit for the purposes of

evaluating the performance of its core operations. 3

Total Stores

Strong Momentum in Footprint Growth

with Record Quarterly Net New Openings

Net new stores

636 in Q1

~33%

of full year target

18,737

>15,000

4 years

>10,000

Targets

To reach 20,000+

stores by 2026

To reach 30,000+

stores by 2030

8 years

>5,000

25 years

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

26'Q1

Accelerated Expansion Through Diverse Store Formats and Franchising

Total Stores Net New Stores

in Q1

Penetrating More Cities

Reduced

Average Capex

Healthy New

Store Payback3

13,454

16% Franchise

457

38% Franchise

2,600+

Cities with KFC

310

New cities entered in last 12 months

~1.3 mn1 RMB / store

(From ~1.5 mn)2

~2-3 years

4,375

10% Franchise

207

51% Franchise

1,100+

Cities with Pizza Hut

280+

New cities entered in last 12 months

~0.9-1.0 mn1

RMB / store

(From ~1.2 mn)2

~2-3

years

1 Refers to stores opened in Q1 2026.

2 Refers to stores opened in Q1 2025.

3 Refers to Average Pre-tax Cash Payback Period assuming yearly cashflow is same as year 1, after deduction of 3% license fee and before G&A expenses and income tax; based on stores opened January 2024 to

December 2024. 5

Balanced Delivery Strategy:

Driving Sales Growth While Mitigating Margin Impact

Delivery Sales +31%1 YoY in Q1

Delivery mix increased by 12ppts YoY to 54% in Q1, driving top-line growth while margin impact was mitigated through our balanced approach.

Seeing early signs of more rational delivery platforms competition.

+33%

YoY in Q1

+25%

YoY in Q1

~55%

~43%

~18%

~29%

~28%

~21%

~24%

~29%

~53%

19'Q1 25'Q1 26'Q1

Sales mix by channels

~51%

~42%

~24%

~5%

~10%

~7%

~42%

~48%

~71%

19'Q1 25'Q1 26'Q1

% of Company sales

1 Delivery sales at Company-owned stores. 6

Q1 2026

System Sales

Growth YoY

Net New

Stores

Operating Profit

OP Margin

55% higher than

Q1 2025

Same-Store Sales Index

Total Stores

OP Growth YoY

Core OP Growth YoY

Restaurant Margin

4 consecutive quarters of growth

Photo: Beijing Songjiazhuang store (北京宋家庄)

Great Tasting and Innovative Products at Affordable Prices

Drive Repeat Purchases and Attract New Customers

Innovate on Our Hero Products

Crackling Golden Chicken Wings

Bring Back Classic LTOs

Spicy Beef Wrap with Dried Celtuce

Value Offering Via Highly Selective Delivery Channels

KCOFFEE Cafe to Reach 5,000 Locations by 2027 Two Years Ahead of Schedule

Total Locations in Q1

Q1 total sales >2x YoY; daily cups sold per store increased YoY

Unique food and drinks leveraging equipment of KFC stores

Generated mid-single digit sales uplift to parent KFC stores

Longjing Misty Rice Latte / Longjing Misty Rice Milk Tea

with Qingtuan (Green Sticky Rice Ball)

Apple Sparkling Americano / Golden Venus Apple Sparkling Americano

Salted Egg Yolk Floss Caramel Egg Tart

Photo: KCOFFEE Cafe Shanghai Tianyaoqiao Road (上海天钥桥路店)

KPRO Rolled Out to 280 Locations

Year-End Target Raised to 600 Locations, Up by 200

Great tasting light meals at affordable prices

Side-by-side module facilitates cross-selling and sharing of resources

Contributed around 20% sales uplift to parent KFC stores

Photo: Beijing Songjiazhuang store (北京宋家庄) 10

Pizza Hut Accelerated Store Openings, Expanded Margins,

and Delivered Double-Digit OP Growth

Q1 2026

System Sales

Growth YoY

Same-Store Sales Index

13 consecutive quarters of same-store transaction growth

Net New

Stores

Operating Profit

OP Margin

+110 bps YoY

~50% of 2025 full-year openings

8 consecutive quarters of OP margin expansion

Total Stores

OP Growth

YoY

Core OP

Growth YoY

Restaurant Margin

+60 bps YoY

On top of last Q1's

27% YoY growth

Photo: Pizza Hut Shenzhen Sanya Bay One (深圳三亚湾壹号)

Refreshed Spring Menu in April with Over 30 New Dishes

Increase Traffic with Innovation, Emotional Appeal, and Value

IP Collaboration

New Products Added in

Signature All-You-Can-Eat

Value Offering Via Highly

Selective Delivery Channels

WOW Store Count Doubled YoY to ~390

Model Opens up Opportunities in Lower-tier Cities

Durian & Pineapple Pizza

￥59 (Regular Size) / ￥35 (Small Size)

Spicy Pepper Butterfly Drumettes

￥29 (5 Pc.) / ￥19 (3 Pc.)

Tea of 'Shui Xian' Da Hong Pao

￥9.9

Model with lower capex and simpler operations.

Healthy store economics - restaurant margins at new equity WOW stores were in line with the main model.

Nearly 80 WOW openings in Q1 were Gemini stores, operating side-by-side with KFC, mostly by franchisees.

A curated menu featuring popular value items strengthens both relevance and appeal, while also ensuring highly efficient operations.

Photo: Pizza Hut WOW in Fuqing City, Longtian Town, Rongding Xintiandi (福清市龙田镇融鼎新天地店) 14

$2.1 bn

Net Cash5

(By end of Mar 2026)

Target Capital Returns Increase in Quarterly in 2024-263 Cash Dividends

$1.5 bn +21%

Each year To $0.29 in Q1 2026

2027 & Beyond Outlook

Target to Return ~100% of Free Cash Flow to ParentCo4

Estimated Average Annual Return of

~$900-1,000 mn+ in 2027-2028

Capital Returns to Shareholders in 2017-2026Q12

$6 bn+ since spin-off

In $mn

1,490 1,489

833

668

473

442

166

278

316

102

2017 2018 2019 2020 2021 2022 2023 2024 2025 26'Q1

Dividends

Share repurchase

On Track to Return $1.5Bn to Shareholders in 2026,

Around 9% of Market Capitalization1

1 Market capitalization as of April 28, 2026

2 Includes dividends and share repurchases. Share repurchase amount excludes 1% excise tax and commissions.

3 Based on current expectations, which may change based on market conditions, capital needs or otherwise. Subject to Board approval on dividends and share repurchases, as well as shareholders' approval on share

repurchases.

4 Refers to operating cash flow less capital spending and dividends paid to non-controlling interests, which is associated with our consolidated JVs including KFC JVs .

5 Refers to $473 mn cash and cash equivalents, $956 mn short-term investments and $707 mn long-term bank deposits and notes, net of $20 mn in short-term borrowings. 15

Appendix

Supplemental Financial Information

2025 Investor Day Highlights

Key Sustainability Updates

Reconciliation of Reported GAAP Results to Non-GAAP Measures

First Quarter Grew YoY and vs 2019

First Quarter

2019

2025

2026

2026 vs 2025

2026 vs 2019

No. of Stores

8,653

16,642

18,737

+13%

+117%

Total Revenues ($ mn)

2,304

2,981

3,271

+10%

+42%

Member Sales %

47%

66%

55%

(11) ppt

+8 ppt

Operating Profit ($ mn)

303

399

447

+12%

+48%

OP Margin (% of revenue)

13.1%

13.4%

13.7%

+0.3 ppt

+0.6 ppt

Note: The comparison of revenue and operating profit include the impact of foreign exchange. 17

Sales and Profit Grew YoY in First Quarter

Revenue/Sales YoY

Revenue growth (reported) +10%

Revenue growth (ex F/X) +4% System sales growth +4%

Operating Profit/Core OP YoY

OP growth (reported)

+12%

OP growth (ex F/X)

+6%

Core OP growth

+6%

Total Revenue ($bn)

Key factors for Revenue year-over-year change

+ Net new unit contribution

+ Same-store sales growth

+ Foreign exchange impact

2.98 3.27

Key factors for Core OP year-over-year change

+ Increase in total revenue

+ Efficiency improvement from streamlined operations

+ Favorable commodity prices

+ G&A expense savings

Higher delivery cost due to increased delivery mix

Value-for-money offerings

25'Q1 26'Q1

$mn

25'Q1

26'Q1

Operating Profit

399

447

Special items

Items affecting comparability

Foreign currency translation

(24)

Core operating profit

399

423

First Quarter Key Performance Highlights

- KFC & Pizza Hut

26'Q1

YoY Sales Growth

Channel Mix

Digital orders

System Sales YoY

Same-store sales YoY

Same-store transactions YoY

Average ticket YoY

Delivery

Total off-premise

Sales %

+5% +1% +1% (1)%

55% 76%

95%

26'Q1 RMB 39 Stable

25'Q1 RMB 40

+4% (1)% +5% (5)%

51% 58%

93%

26'Q1 RMB 73 In line with strategy to

25'Q1 RMB 78 target mass market

Appendix

Supplemental Financial Information

2025 Investor Day Highlights

Key Sustainability Updates

Reconciliation of Reported GAAP Results to Non-GAAP Measures

RGM 3.0 for the Future

Front-End Segmentation

& Back-End Consolidation

Go Deep with Core Brands

Equity & Franchise Hybrid Model

as an Accelerator

Physical Store + Virtual Space

Integrated & Agile Supply Chain

Unleash the Power of Agentic AI

Franchising as an Incremental Growth Lever

to Accelerate Expansion

Franchise Business

2025

Incremental Franchising Impact

(2026-2028)

2028E

Unit Mix 13%

3,000+ Net New Franchise Stores

Franchise Mix of Net New Stores

Twenties

System Sales Mix Revenue1 Mix OP2 Mix

OP Margin3

4-5%

3-4%

40-50%

1/3 - 2/3 of Average Sales of Existing Standard Stores

（up from 20-30%）

Mid-teens High-single High-single

~10%

~50% Franchise Store Sales Recognized as YUMC Revenue

Note: Figures on this page represent KFC and Pizza Hut and their contribution to YUMC total, except for OP margin

1Revenue from franchise business includes Franchise fees and income and Revenues from transaction with franchisees included in KFC and Pizza Hut reportable segments, revenue for delivery services provided to franchisees and included in All Other Segments, and revenue from sale of food and paper products to franchisees and included in Corporate and Unallocated

2The Operating Profit ("OP") of franchise business is defined as revenue from franchise business, less Franchise expenses and Expenses for transactions with franchisees in respective segments, and G&A attributable to franchisee business

3OP Margin of franchise business is defined as OP of franchise business divided by Revenue from franchise business 22

Our Pathway to Value Creation: 2026-2028 Outlook

2026-2028 Growth Targets on 2025 Base:

Same-Store

Sales Index YoY

System Sales1

CAGR

Operating Profit2 CAGR

EPS3 CAGR

Free Cash Flow Per Share CAGR

100-102

Mid- to High-single-digit%

High-single-digit%

Double-digit%

1System sales excluding F/X

2Operating profit excluding special items and F/X

3Diluted EPS excluding special items and F/X 23

Appendix

Supplemental Financial Information

2025 Investor Day Highlights

Key Sustainability Updates

Reconciliation of Reported GAAP Results to Non-GAAP Measures

Industry No.1 on DJSI

for the 6th Year

ESG Ratings and Awards

"Top Employer" in China

for the 8th Year

One of the Most Sustainable

Companies by TIME

Industry No.1 in S&P Global 2025

Corporate Sustainability Assessment

Included in the S&P Global Sustainability Yearbook 2026

Support UN SDG

8 consecutive years of "Top Employer" recognition from the Top Employers Institute

#1 in the restaurant industry for the 5th consecutive year

4th consecutive year

TIME World's Best Companies of

2025

TIME Top 500 World's Most Sustainable Companies List (2024-2025)

Industry Leader

Key ESG Initiatives

Food

Environment

People

Community

Food Safety as Top Priority

End-to-end food safety and quality management system with tech-enabled controls across the value chain

Healthy & Balanced Meals

Offer healthier, more balanced choices and diverse menu options to support a healthy lifestyle

* as of Mar 31, 2026

Climate Action

China's first restaurant company with approved near-term SBTs and committed to achieving net-zero by 2050

Circular Economy

Strive to create "zero-waste restaurants" by adhering to the 4R principle (Reduce, Reuse, Replace, Recycle)

"People First" Philosophy

Provide comprehensive support to ensure the wellbeing of employees - e.g., medical insurance coverage for RGMs, eligible employees, and their families

Diversity, Equity & Inclusion

Foster a fair and inclusive workplace;

~80 "Angel Restaurants"

nationwide*

Rural Revitalization

One Yuan Donation - 18 years of commitment, RMB280mn+ raised benefitted 1mn+ children*

Community Support

Food banks in 1,300+ locations across 190+ cities* Little Migratory Birds Fund benefitted ~6.5mn children*

Appendix

Supplemental Financial Information

2025 Investor Day Highlights

Key Sustainability Updates

Reconciliation of Reported GAAP Results to Non-GAAP Measures

Reconciliation of Operating Profit to Core Operating Profit*

(in $mn)

Yum China

Quarter Ended % Change

3/31/2026

3/31/2025

B/(W)

Operating Profit

$ 447

$ 399

Special Items, Operating Profit

Adjusted Operating Profit

$ 447

$ 399

Items Affecting Comparability

F/X impact

(24)

Core Operating Profit

$ 423

$ 399

Total revenues

3,271

2,981

F/X impact

(159)

Total revenues, excluding the impact of F/X

$ 3,112

$ 2,981

Core OP margin

13.6%

13.4%

0.2 ppts

* Current period amounts are derived by translating results at average exchange rates of the prior year period. 28

Reconciliation of Operating Profit to Core Operating Profit

(in $mn)

KFC Pizza Hut

Quarter Ended Quarter Ended

3/31/2026

3/31/2025

3/31/2026

3/31/2025

GAAP Operating Profit

Special Items, Operating Profit

$ 417

$ 386

$ 71

$ 60

Adjusted Operating Profit

$ 417

$ 386

$ 71

$ 60

Items Affecting Comparability

F/X impact

(21)

(4)

Core Operating Profit

$ 396

$ 386

$ 67

$ 60

Reconciliation of Operating Profit to Restaurant Profit

(in $mn)

Yum China

KFC

Pizza Hut

Quarter Ended

3/31/2026

3/31/2025

3/31/2026

3/31/2025

3/31/2026

3/31/2025

GAAP Operating Profit

$ 447

$ 399

$ 417

$ 386

$ 71

$ 60

Less:

Franchise fees and income

Revenues from transactions with franchisees

156

121

Other revenues

Add:

General and administrative expenses

137

138

Franchise expenses

Expenses for transactions with franchisees

150

117

Other operating costs and expenses

Closures and impairment expenses, net

Restaurant profit

$ 553

$ 520

$ 461

$ 437

$ 94

$ 84

Company sales

3,047

2,801

2,410

2,208

627

584

Restaurant margin

18.2%

18.6%

19.1%

19.8%

15.0%

14.4%

Largest restaurant company in China1

Fortune 500

company

18,000+

restaurants

2,600+

cities in China

Company website: Investor Relations Contact: Media Contact:

http://ir.yumchina.com [email protected]@YumChina.com

Tel: +86 21 2407 7556

Tel: +86 21 2407 3824

About Yum China

6 restaurant brands

Vision: To be the world's most innovative pioneer in the restaurant industry

1 In terms of system sales. 31

and

Disclaimer

Yum China Holdings Inc. published this content on April 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 10:06 UTC.