Yum China reports flat sales growth, dividend declared

Yum China Holdings Inc (HKEX:9987) announced its Q1 2025 financial results, showing system sales growth of 1% (2% excluding F/X), with same-store sales remaining even. The company reported operating profit of $399 million USD, a 7% increase YoY. Diluted earnings per share were $0.77 USD, up 8% YoY. The company also declared a cash dividend of $0.24 USD per share. Yum China has spent $172 million USD on repurchasing shares, and is aiming to return a total of $3 billion USD to shareholders through 2026. Additionally, a global audit relating to related party transactions with Yum! Brands from 2006 to 2015 is ongoing. The Chinese tax authority's potential adverse decision on those transactions could materially affect its financial position and cash flows.