Prnewswire·2025-11-17 04:30Core Insights - Yum China aims to accelerate store expansion, targeting 20,000 stores by 2026 and over 30,000 by 2030, while maintaining high-single-digit operating profit growth and double-digit growth in diluted EPS and free cash flow per share [1][2][12] Strategic Initiatives - The company is implementing the RGM ("Resilience, Growth and Moat") strategy, focusing on innovation and operational efficiency to enhance customer offerings and consolidate resources across stores and regions [2][4] - Yum China plans to return approximately 100% of free cash flow after dividend payments to shareholders starting in 2027, with an expected annual return of $900 million to over $1 billion in 2027 and 2028 [12] KFC Performance - KFC is projected to surpass RMB 10 billion in operating profit by 2028, with plans to increase store count by one-third to over 17,000 and achieve mid- to high-single-digit CAGR in system sales from 2026 to 2028 [3][11] - The brand is focusing on new customer segments and enhancing customer engagement through membership programs and digital ecosystems [4][10] Pizza Hut Growth - Pizza Hut aims to double its operating profit by 2029 compared to 2024, with plans to add over 600 net new stores annually, reaching more than 6,000 stores by 2028 [5][6] - The brand is innovating its menu and operations to enhance efficiency and customer experience, targeting growth in new categories like burgers and one-person meals [6][11] Lavazza Expansion - Lavazza is targeting 1,000 coffee shops and $60 million in retail sales by 2029, leveraging its Italian heritage and local innovation to capture growth in China's coffee market [7][11] Digitalization and Supply Chain - Yum China has integrated AI into its operations since 2019, enhancing customer experience and operational efficiency, with plans to embrace agentic AI for proactive decision-making [8][9] - The company is developing integrated supply chain parks to enhance synergies and operational efficiency, with a focus on food safety [9][11] Financial Targets - For 2025, Yum China targets an operating profit margin of 10.8%-10.9% and a restaurant margin of around 16.2%-16.3%, with free cash flow per share projected at $2.2 to $2.3 [11][14] - Growth targets from 2026 to 2028 include a mid- to high-single-digit CAGR for system sales and double-digit CAGR for diluted EPS and free cash flow per share [11][14]