Yum China posts 4% revenue growth in Q2

Core operating profit rose by 14% YoY.

Yum China reported its revenue up by 4% year on year (YoY) for the second quarter of 2025.

Operating profit climbed by 14%, and operating margin improved to 10.9%.

Same-store sales returned to growth with a 1% YoY increase in Q2, whilst same-store transactions continued their upward streak for the 10th consecutive quarter. Overall system sales rose 4%.

The group’s core operating profit rose by 14% YoY, and restaurant margins increased by 60 basis points YoY.

Yum China opened 336 net new stores in Q2, pushing its total to nearly 17,000 locations by the end of June.

Over the past year, KFC entered approximately 300 new cities, whilst Pizza Hut expanded into 150.

KFC's system sales were up 5% YoY, with same-store sales rising 1%. The chain improved restaurant margins by 70 basis points, attributed to cheaper commodity costs and operational efficiencies.

Core operating profit for KFC rose 10% YoY. KFC also added 295 net new stores in Q2, bringing the total to 12,238.

The group opened 300 new KCOFFEE outlets during the quarter, bringing its café count to over 1,300. It now plans to reach 1,700 by the end of 2025, up from its earlier goal of 1,500.

Meanwhile, Pizza Hut continued its steady expansion, surpassing 3,800 stores across more than 900 cities.

Same-store sales rose by 2% YoY, with transactions jumping 17% YoY. System sales increased by 3% YoY, and the brand marked its fifth consecutive quarter of YoY margin gains.

After converting several Pizza Hut stores to the WOW model last year, as of July 2025, the group opened new WOW stores in over 10 new cities where Pizza Hut had no existing presence.