Core Insights - The company reported a revenue of $3.206 billion in Q3 2025, representing a year-on-year increase of 4.4%, and an operating profit of $400 million, up 7.8%, primarily due to improved restaurant operational efficiency [1] - The net profit attributable to shareholders was $282 million, down 5.1% year-on-year, mainly due to a pre-tax investment loss of approximately $10 million [1] - The company aims to achieve a net increase of 1,600 to 1,800 stores for the year, with a total of 17,514 stores at the end of Q3 2025 [2] Financial Performance - KFC division generated $2.404 billion in revenue, up 4.0%, with an operating profit of $384 million, reflecting a 5.5% increase [1] - Pizza Hut division achieved $635 million in revenue, a 3.3% increase, and an operating profit of $57 million, up 9.6% [1] - The overall same-store sales growth was 1%, with KFC and Pizza Hut showing increases of 2% and 1%, respectively [2] Operational Efficiency - The company saw a 32% increase in delivery revenue, which now accounts for 51% of total revenue [1] - Employee benefits and salaries accounted for 26.2% of total costs, while food costs were 31.3%, and property rent was 25.2% [2] - The management fee rate improved to 4.7%, indicating ongoing efficiency enhancements [2] Brand and Market Expansion - The company added 536 new stores in Q3 2025, with a total of 1,119 new stores added in the first three quarters [2] - The membership base reached 575 million, with member sales accounting for 57% of total sales [2] - The company has expanded its innovative business formats, including over 1,800 K Coffee stores and 100 K Pro stores [3] Shareholder Returns - The company targets a shareholder return of $1.5 billion for 2025, with dividends and buybacks progressing steadily [3] - The adjusted net profit forecasts for 2025-2027 are $927 million, $993 million, and $1.066 billion, respectively [3] - The expected EPS for the same period is $2.62, $2.95, and $3.30, with corresponding PE ratios of 17.1, 15.2, and 13.6 [3]