Shanghai – November 03, 2026 -- Yum China Holdings (NYSE: YUMC; HKEX: 9987) grew third-quarter operating profit 13% year over year to $451 million on revenue up 8% to $3.5 billion, and raised its 2026 net new store target to more than 2,400. Revenue growth was 2% excluding foreign currency translation. Diluted EPS rose 20% to $0.91, or 12% excluding F/X and 8% when mark-to-market equity investment effects are also stripped out.
Record 692 net openings push store count to 19,989
Yum China opened 692 net new stores in the quarter, a quarterly record, and franchisees opened 44% of them. Total stores reached 19,989 at September 30, 2026, with 19% operated by franchisees. The company now expects to surpass 20,500 stores this year, with a 40-50% franchise mix of net new stores for both KFC and Pizza Hut.
Capital expenditure is guided at approximately $600 million to $700 million for 2026.
Same-store sales slip to 97% of prior-year level while transactions grow 3%
Total system sales grew 3% excluding F/X. Same-store sales reached 97% of the prior year's level, while same-store transactions grew 3%, the 15th consecutive quarter of growth. CEO Joey Wat attributed the sales pressure to tough comparisons with last year's delivery platform subsidies and adverse weather in August.
Delivery sales grew 7% and made up about 54% of company sales, versus 51% a year earlier and flat on the prior quarter. Active Members of KFC or Pizza Hut exceeded 278 million, up 6%.
Operating margin expands 50 basis points to 13.0% for a 10th straight quarter
Core operating profit grew 6%. Restaurant margin rose 50 basis points to 17.8%, helped by streamlined operations, favorable commodity prices and Pizza Hut license fee savings. Those gains more than offset value-for-money offerings, sales deleveraging and higher rider costs from the larger delivery mix.
Pizza Hut operating profit jumps 29% after brand acquisition
Yum China completed the acquisition of the Pizza Hut brand in Mainland China on August 7, 2026. Pizza Hut operating profit rose 29% to $73 million, with core operating profit up 21%. OP margin expanded 210 basis points to 11.0%, supported by license fees no longer payable to Yum! Brands. Restaurant margin gained 190 basis points to 15.3%.
Pizza Hut system sales grew 1%, and same-store transactions rose 5%. Delivery sales grew 8% to about 53% of company sales, up from 48%. The chain opened 191 net new stores, 48% by franchisees, for a total of 4,740.
KFC operating profit reaches a record third-quarter $425 million
KFC operating profit grew 10%, with core operating profit up 4%. OP margin rose 30 basis points to 16.3%, and restaurant margin rose 10 basis points to 18.6%. System sales grew 3%, while ticket average fell 5% as smaller orders from new customer segments and occasions such as KCOFFEE and KPRO lifted transactions.
KFC opened 518 net new stores, 269 of them (52%) by franchisees, bringing its total to 14,307. Management said KCOFFEE has crossed 4,000 locations and KPRO has exceeded 700. Pizza Hut's Burger Bar has passed 300, and car-side pickup now covers over 9,000 KFC locations.
Shareholder returns total $1.08 billion in nine months; buyback authorization raised by $1 billion
Yum China returned $362 million in the third quarter, split between $263 million in repurchases and $99 million in dividends. Over nine months it returned $1,080 million: $778 million in buybacks and $302 million in dividends. The company is on track for $1.5 billion in 2026, roughly 10% of its market capitalization as of October 30, 2026.
In November, the board increased the repurchase authorization by $1 billion, leaving approximately $1.3 billion available. It also declared a dividend of $0.29 per share, payable December 22, 2026, to holders of record on December 1.
From 2027, Yum China plans to return about 100% of annual free cash flow after subsidiary dividends to non-controlling interests. It expects average annual returns of approximately $900 million to over $1 billion in 2027 and 2028, exceeding $1 billion in 2028.