What is the revenue and EPS growth rate for Yum China Holdings year over year?

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What does Yum China Holdings do and what are its main business segments?

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What were the key takeaways from Yum China Holdings’s earnings call?

What guidance did Yum China Holdings's management provide for the next earnings period?

- **Resilient Growth**: 4% system sales growth, 1% same-store sales growth, and 8% operating profit increase highlight strong execution amid macro challenges.
- **Margin Expansion**: Restaurant margin improved to 17.3%, driven by cost efficiency and new store openings. Delivery mix growth balanced with operational efficiency.
- **Innovation Momentum**: KCOFFEE Cafes ahead of target (1,800 locations), KPRO and Pizza Hut WOW showing early success in capturing new customer segments.
- **Capital Allocation**: $1.5 billion in capital returns for 2025, maintaining disciplined approach to delivery subsidies and margin protection.

### Core Details - Detail Page

**CEO Summary Section**
- **Revenue and Growth**: System sales grew 4% YoY, driven by 1% same-store sales growth and 536 net new stores. Total store count exceeded 17,500, on track for 20,000 by 2026. KFC achieved 2% same-store sales growth, while Pizza Hut saw 17% transaction growth for three consecutive quarters.
- **Margin Expansion**: Restaurant margin expanded to 17.3%, with operating profit up 8% YoY to $400 million. Pizza Hut WOW stores expanded into 40 new cities, targeting lower-tier markets.
- **Innovation and Efficiency**: Launch of hero products (e.g., Crackling Golden Chicken Wings) and limited-time offers (e.g., Spicy Beef Wrap) drove repeat purchases. Delivery sales accounted for 51% of total sales, up from 40% YoY, with balanced growth in core brands.

**CFO Financial Commentary**
- **Financial Highlights**: GAAP net income of $282 million, 5% lower YoY due to lower interest income. Non-GAAP EPS was $0.76, up 11% YoY excluding Meituan impact. Capital returns of $950 million year-to-date, with $1.5 billion expected for 2025.
- **Cost Management**: Restaurant margin improved 30bps to 17.3%, driven by cost of sales efficiency and lower occupancy costs. Delivery mix increased rider costs, offset by operational efficiency gains.
- **Outlook**: Mid-single-digit system sales growth for 2025, with Q4 same-store sales growth similar to Q3. Core OP margin expected to improve slightly YoY, with tougher comparisons in Q4.

**Q&A Key Highlights**
- **Delivery Subsidies**: Management maintained disciplined approach, balancing sales growth with margin protection. Subsidies in coffee/tea sectors decreased, but QSR subsidies remained stable. Long-term normalization expected.
- **New Formats**: KCOFFEE Cafes expanded to 1,800 locations, with 30% YoY cups sold growth. KPRO (100 locations) and Pizza Hut WOW (250 stores) showed early momentum, leveraging KFC resources for incremental sales.
- **Franchise Strategy**: Franchise mix for new stores was 41% for KFC and 27% for Pizza Hut. Economic improvements for franchisees (e.g., shared efficiency savings) aimed to align margins with equity stores.
- **Pizza Hut Review**: Yum China reaffirmed confidence in Pizza Hut's growth potential, despite Yum! Brands' strategic review. No immediate impact expected on operations.


Yum China Holdings, Inc. (YUMC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

YUMC

YUMC fundamentals

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