Yum China targets lower-tier cities in next growth plans

The brand plans to reach 25,000 restaurants by 2028.

Yum China plans to target more lower-tier cities as it aims to exceed 25,000 restaurants by 2028.

These plans were announced during the 2025 Investor Day in Shenzhen, China.

“As we continue to grow, we remain committed to returning capital to shareholders, with a target to return approximately 100% of free cash flow after dividend payments to non-controlling interests of our subsidiaries, starting from 2027,” Joey Wat, CEO of Yum China, said.

For its plans regarding KFC, the group aims to expand its restaurants by one-third to over 17,000 and deliver mid-to-high single-digit CAGR in system sales over 2026-2028, with operating profit surpassing $1.41 billion by 2028.

Meanwhile, Yum China seeks to expand Pizza Hut's presence to over 1,500 cities, leveraging its KFC network, where Pizza Hut has not yet entered the market. Over the next three years, the group plans to add 600 new restaurants, including a step up in franchise mix, bringing the total to more than 6,000 stores by 2028.

The group plans to use its compact Pizza Hut WOW model to penetrate more lower-tier cities.