Core Insights - Yum China reported a 3% increase in same-store sales and a 7% growth in system sales for the fourth quarter of 2025, with operating profit rising by 25% [1][5] - For the full year 2025, operating profit rose by 11%, and diluted EPS increased by 8%, or 14% when excluding mark-to-market and foreign exchange impacts [1][3] Fourth Quarter Highlights - Total revenues for the fourth quarter increased by 9% year-over-year to $2.8 billion, or a 7% increase excluding foreign exchange [5][7] - The company opened a record 587 net new stores in the fourth quarter, with 36% opened by franchisees [5][7] - Operating profit for the fourth quarter was $187 million, with an operating profit margin of 6.6%, an increase of 80 basis points year-over-year [5][7] Full Year Highlights - Total revenues for the full year reached $11.8 billion, a 4% increase year-over-year, also a 4% increase excluding foreign exchange [5][7] - The company opened 1,706 net new stores in 2025, with 31% opened by franchisees, bringing the total store count to 18,101 [5][7] - Operating profit for the full year was $1.3 billion, with an operating profit margin of 10.9%, up 60 basis points year-over-year [5][7] Capital Returns to Shareholders - Yum China plans to return $1.5 billion to shareholders in 2026, which includes a 21% increase in cash dividends to $0.29 per share [11][9] - In 2025, the company returned $1.5 billion to shareholders through $353 million in cash dividends and $1.14 billion in share repurchases [11][9] KFC Performance - KFC's system sales grew by 8% year-over-year, with same-store sales increasing by 3% [12][10] - Delivery sales for KFC grew by 34% year-over-year, contributing approximately 53% of total company sales [12][10] - Operating profit for KFC in the fourth quarter was $223 million, with an operating profit margin of 10.5%, an increase of 60 basis points year-over-year [12][10] Pizza Hut Performance - Pizza Hut's system sales grew by 6% year-over-year, with same-store sales increasing by 1% [18][13] - Delivery sales for Pizza Hut grew by 33% year-over-year, contributing approximately 54% of total company sales [18][13] - Operating profit for Pizza Hut in the fourth quarter was $20 million, with an operating profit margin of 3.7%, an increase of 110 basis points year-over-year [18][13] Future Outlook - The company targets to exceed 20,000 stores by 2026 and aims for more than 30,000 stores by 2030, utilizing an equity-and-franchise hybrid model [6][16] - Yum China remains committed to executing its RGM 3.0 strategy, focusing on innovation and operational efficiency [6][16]