Yum China Holdings ended the 2025 fiscal year on a strong note, with an increase in delivery orders and expedited store openings fueling a rise in sales and profits, even amidst muted consumer spending in China.
During the quarter that concluded on December 31, Yum China, the operator of KFC, Pizza Hut, and other dining brands throughout mainland China, recorded a revenue of US$2.8 billion, a 9% increase compared to the previous year.
The company saw a 3% growth in same-store sales, the third consecutive quarter of positive growth, while system sales experienced a 7% increase.
Delivery service played a crucial role in driving growth, with delivery sales surging by 34% and contributing to around 53% of the total revenue. Yum China’s emphasis on digital ordering and convenience due to fluctuating dine-in customer counts across regions remains an integral part of its strategy.
Store expansion significantly contributed to the company’s performance. Yum China inaugurated an astonishing 587 new stores in the fourth quarter, with franchise partners opening nearly 36% of these stores. Over the year, the group opened 1706 additional stores, raising its total to more than 18,100 restaurants across the nation.
For the 2025 fiscal year, Yum China reported a revenue of US$11.8 billion, a 4% increase from the previous year, while the operating profit climbed 11% to approximately US$1.3 billion.
Joey Wat, CEO of Yum China, praised the hardworking team for ending 2025 on a high note by delivering growth in same-store sales for three consecutive quarters and same-store transaction growth for twelve quarters in a row.
Wat noted that KFC had discovered new consumption opportunities via its KCoffee cafe format and Kpro side-by-side modules. Meanwhile, Pizza Hut enhanced its value proposition and launched its Wow model to extend its presence to previously untapped locations, particularly in lower-tier cities.
In terms of future plans, the company aims to operate more than 20,000 restaurants by the end of the current year, supported by the opening of over 1900 new stores. Yum China predicts that franchised outlets will represent 40-50% of all new openings across KFC and Pizza Hut, as it continues to extend its hybrid ownership model.
What was the revenue of Yum China for the 2025 fiscal year?
The revenue was reported to be US$11.8 billion, a 4% year on year increase.
What role did delivery service play in Yum China’s growth?
Delivery service was a major growth driver, with delivery sales rising by 34% and making up around 53% of the total revenue.
What are the company’s future expansion plans?
Yum China aims to operate over 20,000 restaurants by the end of the year, supported by the opening of more than 1900 new stores.
