2025-08-11 10:04Financial Performance - Net income for the quarter ended June 30, 2025, was $233 million, a slight increase from $228 million in the same quarter of 2024, while year-to-date net income reached $546 million compared to $535 million in 2024[9]. - Comprehensive income for Yum China Holdings, Inc. for the quarter ended June 30, 2025, was $268 million, up from $186 million in the same quarter of 2024, and year-to-date comprehensive income was $583 million compared to $402 million in 2024[9]. - Total revenues for the quarter ended June 30, 2025, were $2,787 million, an increase from $2,679 million for the same period in 2024, representing a year-over-year growth of approximately 4%[52]. - Operating profit for the quarter ended June 30, 2025, was $304 million, compared to $266 million for the same quarter in 2024[97]. - Revenue from external customers for the year to date ended June 30, 2025, was $5,768 million, an increase from $5,637 million for the same period in 2024, representing a growth of 2.3%[98]. Cash Flow and Capital Expenditures - Cash provided by operating activities for the year to date ended June 30, 2025, was $864 million, compared to $843 million in the same period of 2024[11]. - Capital spending for the year to date ended June 30, 2025, was $259 million, compared to $358 million in the same period of 2024[11]. - Cash and cash equivalents at the end of the period were $592 million, down from $723 million at the beginning of the period[11]. Assets and Liabilities - Total assets as of June 30, 2025, were $10,983 million, a decrease from $11,121 million as of December 31, 2024[12]. - Total liabilities decreased to $4,514 million as of June 30, 2025, from $4,694 million at the end of 2024[12]. - The total equity of Yum China Holdings, Inc. increased to $6,456 million as of June 30, 2025, from $6,414 million at the end of 2024[12]. Shareholder Returns - The company declared cash dividends of $0.24 per common share, totaling $90 million for the quarter[13]. - Yum China Holdings, Inc. repurchased $368 million worth of common stock during the year to date ended June 30, 2025, compared to $869 million in the same period of 2024[11]. - The company repurchased and retired shares amounting to $186 million during the quarter[13]. Segment Performance - Company sales for KFC were $2,096 million and for Pizza Hut were $554 million for the quarter ended June 30, 2025, compared to $2,014 million and $540 million, respectively, for the same quarter in 2024[52]. - KFC segment revenue for the year to date ended June 30, 2025, was $4,342 million, up from $4,244 million in 2024, marking a growth of 2.3%[98]. - Pizza Hut segment revenue for the year to date ended June 30, 2025, was $1,149 million, an increase from $1,135 million in 2024, representing a growth of 1.2%[98]. Tax and Regulatory Matters - The income tax provision for the quarter ended June 30, 2025, was $80 million, up from $77 million in 2024, with an effective tax rate of 25.8% compared to 25.2% in the prior year[88]. - The effective tax rate for the year to date ended June 30, 2025, was 26.9%, up from 26.2% in 2024, primarily due to higher withholding tax associated with planned repatriation of earnings[88]. - The company is currently evaluating the impact of the One Big Beautiful Bill Act (OBBBA) signed into law in July 2025 on its financial statements[94]. Investments and Acquisitions - The Company acquired a 5% equity interest in Sunner, China's largest white-feathered chicken producer, for $222 million as of June 30, 2025[31][34]. - The Company has strategic equity investments totaling $27 million in eco-system partners as of June 30, 2025[38]. - The Company established a joint venture with Lavazza Group, holding a 65% equity interest, to develop the Lavazza coffee concept in China[20]. Operational Metrics - As of June 30, 2025, the Company operates 12,238 KFC stores and 3,864 Pizza Hut restaurants in China[18][19]. - The company leased over 14,000 properties in China for its restaurants, with lease terms generally ranging from 10 to 20 years[68]. - Total lease liabilities were $2,235 million as of June 30, 2025, down from $2,287 million at the end of 2024[70].