Yum China : 1Q 2026 Earnings Presentation

Published: 2026-04-29 05:16:18 ET YUMC

Published on 04/29/2026 at 05:16 am EDT

First Quarter 2026 Results

April 29, 2026

NYSE: YUMC and HKEX: 9987

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

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

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

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)

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)

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

IP Collaboration

New Products Added in

Signature All-You-Can-Eat

Value Offering Via Highly

Selective Delivery Channels

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

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

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

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

Supplemental Financial Information

2025 Investor Day Highlights

Key Sustainability Updates

Reconciliation of Reported GAAP Results to Non-GAAP Measures

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 09:15 UTC.