YUM CHINA (09987) has released its interim results for the six months ended June 30, 2026, reporting a total revenue of $6.409 billion, a year-over-year increase of 11.11%. Net profit reached $5.53 billion, up 9.07% from the same period last year, while diluted earnings per share were $1.57.
For the six-month period, operating profit rose by 13%, or 7% excluding the impact of foreign currency translation. This growth was primarily driven by higher total revenue, efficiency improvements from streamlined operations, favorable raw material prices, reduced store closure and impairment charges, and lower administrative expenses. These gains were partially offset by increased delivery costs due to a higher proportion of delivery sales and a rise in value-for-money menu items.
The company has set a target of exceeding 20,000 total stores, or net adding over 1,900 new locations, with capital expenditure planned between $600 million and $700 million. YUM CHINA expects franchise stores to account for 40-50% of net new store openings for both KFC and Pizza Hut. The company plans to return $1.5 billion to shareholders in 2026 through share repurchases and dividends, building on the $1.5 billion it returned in each of 2024 and 2025.
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