Yum China unveils ambitious growth targets through 2030 investor day

Yum China Holdings, Inc. announced an aggressive growth strategy at its 2025 Investor Day, targeting 20,000 stores by 2026 and over 30,000 stores by 2030. The company projects high-single-digit CAGR for operating profit and double-digit CAGR for diluted EPS and free cash flow per share from 2026 to 2028. For 2025, the full-year outlook includes an OP margin of 10.8%-10.9% and a restaurant margin of 16.2%-16.3%.

KFC aims to surpass RMB 10 bn in operating profit by 2028, with plans to increase its store count by one-third to over 17,000 by 2028. Pizza Hut expects to double its operating profit by 2029 compared to 2024, adding over 600 net new stores annually to reach more than 6,000 by 2028. Lavazza targets 1,000 coffee shops and $60m in retail sales by 2029.

The company is committed to returning $1.5 bn in capital to shareholders annually from 2024 to 2026. Beginning in 2027, it plans to return approximately 100% of annual free cash flow, translating to an average annual return of $900m to over $1 bn in 2027 and 2028, and exceeding $1 bn by 2028. Average annual capital expenditure is projected at approximately $600m to $700m from 2026 to 2028.