Yum China (09987) announced third quarter results, net profit of US$311 million increased 10% year over year

According to Zhitong Finance App News, Yum China (09987) announced financial results for the third quarter of 2026. System sales increased 3% year over year, not counting the impact of foreign currency conversion; total revenue increased 8% year over year to 3.5 billion US dollars, or 2%, not taking into account the impact of foreign currency conversion. Operating profit increased 13% year over year to $451 million. Core operating profit increased 6% year over year. Net profit of US$311 million, up 10% year over year; diluted profit of $0.91 per common share.

Ms. Qu Cuirong, CEO of Yum China, said, “Despite the changing market environment, we have achieved year-on-year growth in system sales, operating profit, and operating profit margin for the 10th consecutive quarter. It is worth mentioning that after excluding the impact of equity investment and foreign currency conversion in terms of market capitalization, our diluted earnings per share have grown by double digits since the beginning of this year and every year of the past three years. These results demonstrate the resilience of our business model, steady execution, and commitment to create sustainable returns for shareholders. Due to the high base of takeout platform subsidies in the same period last year and the unfavorable weather in August, same-store sales are under some pressure. However, we have successfully captured the incremental demand brought about by a wider range of consumption scenarios, such as small orders and one-person meals, etc., and achieved 15 consecutive quarters of growth in same-store transactions. In order to seize the major opportunities in the Chinese market, we have accelerated the opening of our own and franchised stores, fully exploiting the advantages of our flexible store types and menus, and making steady progress towards the goal of breaking through 20,500 stores within the year.”

Ms. Qu continued, “We continue to build our brand and attract more customers to our stores through more attractive in-store exclusive offers and experiences, as well as more convenient takeout services. The performance of dine-in and takeout improved month-on-month, reversing previous trends. At the same time, the side-by-side model for new consumption scenarios, driving incremental sales and profit growth, maintained strong momentum, and reached key milestones: Kenyue Coffee surpassed 4,000 stores, KPRO Kenrou Light Foods surpassed 700, and the Pizza Win Burger module covered more than 300 stores. We are also continuing to promote express delivery services to boost the takeout business, and have now covered more than 9,000 KFC stores. In terms of the core menu, we continue to innovate around core items to increase repeat purchases and attract new customers. These growth drivers have further strengthened our confidence to achieve sustainable growth. Looking ahead, we remain committed to achieving the three-year growth target set out on Investor Day.”