Core Viewpoint - Yum China reported a 3Q25 revenue of $3.2 billion, a year-over-year increase of 4%, with operating profit at $400 million, up 8% year-over-year, slightly exceeding Bloomberg consensus expectations [1] Financial Performance - 3Q25 operating profit margin reached 12.5%, an increase of 0.4 percentage points year-over-year [1] - Net profit attributable to shareholders for 3Q25 was $282 million, down 5% year-over-year, primarily impacted by Meituan's stock price decline; excluding this loss, net profit increased by 7% year-over-year [1] - Total shareholder return for the quarter was $414 million, with a dividend of $0.24 per share announced; the company expects total returns of approximately $1.5 billion for the year [1] Same-Store Sales and Growth - Overall system sales increased by 4% in 3Q25, with same-store sales up 1%, continuing the growth trend from Q2 [1] - KFC's same-store sales grew by 2%, while Pizza Hut's same-store sales increased by 1% [1] - Delivery sales surged by 32% year-over-year, accounting for 51% of restaurant revenue, an increase of 11 percentage points year-over-year [1] Store Expansion and New Formats - The total number of stores reached 17,514, with KFC and Pizza Hut having 12,640 and 4,022 stores respectively; net new stores in 3Q25 were 536, with a 32% share of new franchise stores [2] - KFC and Pizza Hut achieved record net new stores in 3Q25, with 403 and 158 new stores respectively [2] - New formats such as KFC Coffee and KPRO are expanding, with KFC Coffee reaching 1,800 locations [2] Shareholder Returns and Guidance - The company returned a total of $414 million to shareholders in 3Q25, with $88 million in cash dividends and $326 million in stock buybacks [2] - The company maintains its guidance for total shareholder returns of $3 billion for 2025-2026, representing 9% of its market value as of November 3, 2025 [2] Profit Forecast and Valuation - The company adjusted its net profit forecasts for 2025-2027 to $908 million, $986 million, and $1.049 billion respectively, reflecting a decrease of 2.6%, 3.7%, and 4.2% from previous estimates [3] - The target price is adjusted to $53.10, based on a 2026 PE ratio of 18X, considering stable customer spending and operational efficiency improvements [3]
百胜中国(9987.HK)：延续同店增势和经营韧性