Quarterly Results
Annual Performance Context
For the full year 2025, total revenues increased 4% to $11.8 billion. Operating profit grew 11% to $1.3 billion, with a corresponding operating margin of 10.9%, up 60 basis points from 2024. Net income attributable to the company was $929 million. Diluted EPS for the fiscal year reached $2.51, an 8% increase. The company returned $1.5 billion to shareholders during 2025, consisting of $353 million in cash dividends and $1.14 billion through the repurchase of 24.7 million shares. The full-year restaurant margin finished at 16.3%, an improvement of 60 basis points year-over-year, driven by streamlined operations and favorable commodity prices.
Business and Operations Update
The company opened a record 1,706 net new stores in 2025, bringing its total footprint to 18,101 locations. KFC added 1,349 net new units, reaching 12,997 restaurants, while Pizza Hut opened 444 net new units for a total of 4,168. Franchisees opened 31% of the new units. Delivery services contributed 48% of total sales for the year, up from 39% in 2024, and reached 53% in the fourth quarter. Digital ordering accounted for 94% of company sales. Total membership base for KFC and Pizza Hut exceeded 590 million, a 13% increase. The company also expanded its KPRO footprint to over 200 locations.
Forward Outlook
For 2026, Yum China targets a total store count exceeding 20,000, requiring over 1,900 net new store openings. The company anticipates a franchise mix of 40-50% for these new units. Capital expenditures for 2026 are projected between $600 million and $700 million. Management plans to return $1.5 billion to shareholders in 2026 and has increased the quarterly dividend by 21% to $0.29 per share. Looking toward 2027 and 2028, the company expects average annual returns between $900 million and $1 billion. Long-term targets include reaching 30,000 stores by 2030.
Performance Summary
KFC’s annual operating profit was $1.3 billion, while Pizza Hut’s operating profit rose 19% to $183 million. Pizza Hut achieved a margin of 7.9%. The company’s net cash reached $2.0 billion. Inventory levels stood at $438 million. Total assets reached $10.8 billion. Finalized company audits confirm these fiscal results.