Core Insights - Yum China (09987) reported total revenue of $5.768 billion for the six months ending June 30, 2025, representing a year-on-year increase of 2.32% [1] - Net profit for the same period was $507 million, up 1.6% year-on-year, with diluted earnings per share of $1.35 [1] - Operating profit grew by 10% or 11% (excluding foreign currency translation effects), driven by revenue growth, favorable raw material prices, and operational efficiency improvements [1] Financial Performance - Total revenue increased to $5.768 billion, a 2.32% rise compared to the previous year [1] - Net profit reached $507 million, reflecting a 1.6% increase year-on-year [1] - Diluted earnings per share stood at $1.35 [1] - Operating profit growth was attributed to revenue increase and cost efficiencies, despite rising delivery costs and low single-digit wage increases [1] Store Expansion Plans - The company anticipates adding approximately 1,600 to 1,800 new stores in fiscal year 2025, with capital expenditures estimated between $600 million and $700 million, down from the initial target of $700 million to $800 million due to optimized store investment costs [1] - For 2025, the company expects that the proportion of franchise stores among new openings will reach 40-50% for KFC and 20-30% for Pizza Hut, achieving earlier targets [1] - Future plans include increasing the franchise proportion within new store openings within established targets [1] Shareholder Returns - Following a $1.5 billion return to shareholders in 2024, the company plans to return $3 billion to shareholders between 2025 and 2026 [1] - The expected shareholder return for the full year of 2025 is at least $1.2 billion [1]