Yum China (09987) opened higher in morning trading. At the time of writing, the stock was up 7.44%, trading at HK$421.60 with a turnover of HK$247 million.
The company announced its 2025 annual results, reporting total revenue of $11.797 billion, a 4% year-on-year increase; net profit was $929 million, up 2%, with earnings per share at $2.52. A dividend of 29 cents per share was declared. For the fourth quarter alone, total revenue reached $2.823 billion, a 9% year-on-year increase; net profit was $140 million, surging 22%, with earnings per share at 40 cents. Operating profit grew 25% to $187 million. During the quarter, same-store sales increased by 3%, marking the third consecutive quarter of growth.
In 2025, the company added 1,706 new stores, expanding its store network to 18,101 locations, covering over 2,500 cities and towns across China. Looking ahead to 2026, the company aims to have a total of more than 20,000 stores, implying a net addition of over 1,900 new stores. Franchised stores are expected to account for 40% to 50% of the net new store additions for both KFC and Pizza Hut. Capital expenditures are projected to be between $600 million and $700 million. The company plans to return $1.5 billion to shareholders.
Comments