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Yum China Q4 Earnings & Revenues Top Estimates, Both Up YoY
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Key Takeaways
YUMC posted Q4 EPS of 40 cents and $2.8B in revenues, beating consensus estimates.
Yum China saw system sales rise 3% and same-store sales grow 1%, led by gains at KFC and Pizza Hut.
YUMC expanded margins as restaurant margin hit 13% and adjusted operating profit jumped 25% year over year.
Yum ChinaHoldings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2025 results, with earnings and revenues surpassing the Zacks Consensus Estimate. On a year-over-year basis, both the top and bottom lines increased.
Fourth-quarter results were supported by solid performance at both KFC and Pizza Hut, with continued momentum in system sales and same-store sales growth. The company’s dual focus on innovation and operational efficiency is supporting healthy margins. Its multi-brand portfolio, diverse formats and broad menu offerings enable Yum China to reach more customer segments and serve a wide range of dining occasions.
Looking ahead, management emphasized its continued focus on efficiency and sales leverage and expects to keep restaurant-level and operating margins in the first quarter of 2026 roughly in line with the prior-year period.
Following the earnings release, shares of YUMC gained 4.7% during trading hours yesterday.
YUMC’s Q4 Earnings & Revenue Discussion
Yum China reported adjusted earnings per share of 40 cents, topping the Zacks Consensus Estimate of 35 cents by 14.3%. The bottom line increased 33% year over year.
Total revenues of $2.8 billion beat the consensus mark of $2.7 billion and grew 8.8% from the year-ago quarter. Excluding foreign currency translation, revenues were also up 7%.
System sales (excluding F/X) rose 7% year over year. KFC system sales rose 8%, while Pizza Hut grew 6%. Same-store transactions advanced 13%, marking the 12th consecutive quarter of growth.
Operating Highlights of YUMC
Total costs and expenses came in at $2.64 billion, up 8% from last year. The restaurant margin improved 70 basis points year over year to 13%, aided by savings in food, paper and occupancy costs.
Adjusted operating profit grew 25% to $187 million, compared with $151 million in the year-ago quarter. Adjusted EBITDA was $318 million, up from $292 million last year. The adjusted operating margin expanded 80 basis points year over year to 6.6%.
KFC’s revenues rose 9% to $2.1 billion, with operating profit up 16% to $223 million. Pizza Hut’s revenues climbed 6% to $540 million, and operating profit surged 52% to $20 million.
YUMC’s 2025 Highlights
Total revenues for 2025 came in at $11.8 billion compared with $11.3 billion reported in 2024.
Adjusted EBITDA in 2025 came in at $1.78 billion compared with $1.69 billion reported in 2024.
In 2025, adjusted EPS came in at $2.51 compared with $2.33 reported in the previous year.
The company opened 1,706 net new stores, with franchisees accounting for 31% of the openings. Total store count reached 18,101 as of Dec. 31, 2025.
YUMC’s Balance Sheet & Shareholder Returns
As of Dec. 31, 2025, Yum China had cash and cash equivalents of $506 million, down from $723 million at the end of 2024. Total liquidity (cash and short-term investments) stood at $2.19 billion. Long-term bank deposits and notes were $678 million.
The company returned $1.5 billion to its shareholders in 2025, comprising $1.14 billion in share repurchases and $353 million in cash dividends. The board declared a 21% increase in the cash dividend, raising it to $0.29 per share on Yum China’s common stock. The dividend will be payable on March 25, 2026, to its shareholders of record at the close of business on March 4.
2026 Outlook by YUMC
For 2026, Yum China expects to open a total of 20,000 stores, or more than 1,900 net new stores. Capital expenditure is anticipated to be between $600 million and $700 million. The company plans to return $1.5 billion to its shareholders in 2026.
YUM! Brands, Inc. (YUM - Free Report) reported fourth-quarter 2025 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. However, both metrics increased year over year.
Yum! Brands capped off another strong year, led by impressive performances at KFC and Taco Bell. Taco Bell continued to outperform the market, posting exceptional same-store sales gains, while KFC achieved a new milestone in restaurant expansion, marking its best year ever for unit growth. Turner noted that the company heads into 2026 with sharpened priorities centered on its long-term “Raise the Bar” strategy, aimed at sustaining growth.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported fourth-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased from the prior-year quarter’s figure, while the bottom line remained flat.
Chipotle's fourth-quarter results were affected by various headwinds, including near-term margin pressure due to elevated labor, marketing and operating costs. Negative investor sentiments were witnessed as management highlighted declining comparable sales amid a dynamic and uncertain consumer backdrop.
Starbucks Corporation (SBUX - Free Report) reported mixed first-quarter fiscal 2026 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The top line increased, but the bottom line declined from the prior-year quarter’s figure.
Starbucks’ management said first-quarter fiscal 2026 results show the “Back to Starbucks” strategy is gaining traction sooner than expected, with sales improving as more customers return and visit often. The company is confident this momentum will translate into sustainable earnings growth and support long-term profitability.
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Yum China Q4 Earnings & Revenues Top Estimates, Both Up YoY
Key Takeaways
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2025 results, with earnings and revenues surpassing the Zacks Consensus Estimate. On a year-over-year basis, both the top and bottom lines increased.
Fourth-quarter results were supported by solid performance at both KFC and Pizza Hut, with continued momentum in system sales and same-store sales growth. The company’s dual focus on innovation and operational efficiency is supporting healthy margins. Its multi-brand portfolio, diverse formats and broad menu offerings enable Yum China to reach more customer segments and serve a wide range of dining occasions.
Looking ahead, management emphasized its continued focus on efficiency and sales leverage and expects to keep restaurant-level and operating margins in the first quarter of 2026 roughly in line with the prior-year period.
Following the earnings release, shares of YUMC gained 4.7% during trading hours yesterday.
YUMC’s Q4 Earnings & Revenue Discussion
Yum China reported adjusted earnings per share of 40 cents, topping the Zacks Consensus Estimate of 35 cents by 14.3%. The bottom line increased 33% year over year.
Yum China Price, Consensus and EPS Surprise
Yum China price-consensus-eps-surprise-chart | Yum China Quote
Total revenues of $2.8 billion beat the consensus mark of $2.7 billion and grew 8.8% from the year-ago quarter. Excluding foreign currency translation, revenues were also up 7%.
System sales (excluding F/X) rose 7% year over year. KFC system sales rose 8%, while Pizza Hut grew 6%. Same-store transactions advanced 13%, marking the 12th consecutive quarter of growth.
Operating Highlights of YUMC
Total costs and expenses came in at $2.64 billion, up 8% from last year. The restaurant margin improved 70 basis points year over year to 13%, aided by savings in food, paper and occupancy costs.
Adjusted operating profit grew 25% to $187 million, compared with $151 million in the year-ago quarter. Adjusted EBITDA was $318 million, up from $292 million last year. The adjusted operating margin expanded 80 basis points year over year to 6.6%.
KFC’s revenues rose 9% to $2.1 billion, with operating profit up 16% to $223 million. Pizza Hut’s revenues climbed 6% to $540 million, and operating profit surged 52% to $20 million.
YUMC’s 2025 Highlights
Total revenues for 2025 came in at $11.8 billion compared with $11.3 billion reported in 2024.
Adjusted EBITDA in 2025 came in at $1.78 billion compared with $1.69 billion reported in 2024.
In 2025, adjusted EPS came in at $2.51 compared with $2.33 reported in the previous year.
The company opened 1,706 net new stores, with franchisees accounting for 31% of the openings. Total store count reached 18,101 as of Dec. 31, 2025.
YUMC’s Balance Sheet & Shareholder Returns
As of Dec. 31, 2025, Yum China had cash and cash equivalents of $506 million, down from $723 million at the end of 2024. Total liquidity (cash and short-term investments) stood at $2.19 billion. Long-term bank deposits and notes were $678 million.
The company returned $1.5 billion to its shareholders in 2025, comprising $1.14 billion in share repurchases and $353 million in cash dividends. The board declared a 21% increase in the cash dividend, raising it to $0.29 per share on Yum China’s common stock. The dividend will be payable on March 25, 2026, to its shareholders of record at the close of business on March 4.
2026 Outlook by YUMC
For 2026, Yum China expects to open a total of 20,000 stores, or more than 1,900 net new stores. Capital expenditure is anticipated to be between $600 million and $700 million. The company plans to return $1.5 billion to its shareholders in 2026.
YUMC’s Zacks Rank & Recent Retail-Wholesale Releases
Yum China currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
YUM! Brands, Inc. (YUM - Free Report) reported fourth-quarter 2025 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. However, both metrics increased year over year.
Yum! Brands capped off another strong year, led by impressive performances at KFC and Taco Bell. Taco Bell continued to outperform the market, posting exceptional same-store sales gains, while KFC achieved a new milestone in restaurant expansion, marking its best year ever for unit growth. Turner noted that the company heads into 2026 with sharpened priorities centered on its long-term “Raise the Bar” strategy, aimed at sustaining growth.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported fourth-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased from the prior-year quarter’s figure, while the bottom line remained flat.
Chipotle's fourth-quarter results were affected by various headwinds, including near-term margin pressure due to elevated labor, marketing and operating costs. Negative investor sentiments were witnessed as management highlighted declining comparable sales amid a dynamic and uncertain consumer backdrop.
Starbucks Corporation (SBUX - Free Report) reported mixed first-quarter fiscal 2026 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The top line increased, but the bottom line declined from the prior-year quarter’s figure.
Starbucks’ management said first-quarter fiscal 2026 results show the “Back to Starbucks” strategy is gaining traction sooner than expected, with sales improving as more customers return and visit often. The company is confident this momentum will translate into sustainable earnings growth and support long-term profitability.