Core Insights - Yum China reported a 4% year-on-year increase in system sales for Q3 2025, with total revenue reaching $3.206 billion, also up 4% year-on-year [1] - Operating profit grew by 8% to $400 million, while net profit was approximately $282 million, translating to a basic earnings per share of $0.76 [1] - For the first nine months of 2025, total revenue was $8.974 billion, a 3% increase year-on-year, with operating profit rising 9% to $1.103 billion and net profit at $789 million, resulting in basic earnings per share of $2.12 [1] KFC Performance - KFC's system sales increased by 5% year-on-year, with same-store sales up 2% and same-store transaction volume rising by 3% [2] - Average transaction value decreased by 1%, attributed to a surge in small orders, while delivery sales soared by 33%, accounting for 51% of KFC's restaurant revenue [2] - KFC added a record 402 new stores in the quarter, with a total of 12,640 stores as of September 30, 2025 [2] - Operating profit for KFC rose by 6% to $384 million, with an operating profit margin of 16.0%, up 30 basis points year-on-year [2] Pizza Hut Performance - Pizza Hut's system sales grew by 4% year-on-year, with same-store sales increasing by 1% and same-store transaction volume up 17%, marking the eleventh consecutive quarter of growth [3] - The brand opened a record 158 new stores in the quarter, bringing the total to 4,022 stores as of September 30, 2025 [3] - Operating profit for Pizza Hut increased by 7% to $57 million, with plans to add approximately 1,600 to 1,800 new stores in 2025 [3] Strategic Initiatives - The CEO highlighted the company's robust performance in a changing market, emphasizing the acceleration of store openings and positive same-store sales growth [3] - The company is focusing on strong growth in key products and expanding new growth engines, with successful new product launches in both KFC and Pizza Hut [3] - The company aims to enhance efficiency through resource sharing and integration across stores and regions, leveraging its core competencies and strategic resilience for future growth [3]