Yum China reports strong revenue and profit growth in first half

Yum China Holdings Inc. reported a 2% increase in total revenues to $5,768m for the first half of 2025, or 3% excluding foreign currency impact, primarily driven by 3% net new unit contribution. Operating profit surged by 10% to $703m, or 11% excluding foreign currency impact, benefiting from higher revenues, favorable commodity prices, and improved operational efficiency. Net income attributable to Yum China also saw a 1% rise to $507m, contributing to diluted earnings per common share of $1.35.

The company's restaurant network expanded by 10% year-over-year, reaching 16,978 restaurants as of June 30, 2025. KFC grew its units by 8% to 14,319, while Pizza Hut increased its restaurants by 9% to 3,864. The company aims to open 1,600 to 1,800 net new stores in 2025 and plans to return $3bn to shareholders between 2025 and 2026.

Cash provided by operating activities increased to $864m in 2025, up from $843m in 2024, mainly due to higher operating profit and working capital changes. Net cash used in investing activities rose to $290m, primarily due to increased short-term investment purchases. The company repurchased 7.7 million shares for $356m and declared a cash dividend of $0.24 per share, payable in September 2025.