Yum China (09987) announced interim results with net profit of US$5.53 billion, up 9.07% year-on-year

According to the Zhitong Finance App, Yum China (09987) announced that with the interim results for the six months ended June 30, 2026, the group achieved total revenue of US$6.409 billion, up 11.11% year on year; net profit of US$5.53 billion, up 9.07% year on year; and diluted profit of 1.57 US dollars per common share.

For the six months ended June 30, 2026, operating profit increased by 13% or 7% (not taking into account the impact of foreign currency conversion), mainly due to increased total revenue, efficiency improvements brought about by streamlined operations, favorable raw material prices, store closure and impairment expenses, and reduced administrative expenses, partly offset by increased delivery costs and increases in cost-effective products due to an increase in the share of takeout sales during the period.

The company aims to increase the total number of stores to exceed 20,000, or a net increase of more than 1,900, with a capital expenditure of between 600 million and 700 million US dollars. The company expects both KFC and Pizza Hut to account for 40-50% of the net new stores.

The company plans to give back US$1.5 billion to shareholders in 2024 and 2025, respectively, on the basis of returning US$1.5 billion to shareholders through share repurchases and dividends, respectively, and US$1.5 billion in 2026.