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Yum China: Can a 20,000-Store Ambition Supercharge Its Next Growth Cycle?

Yum China, a leading restaurant company, has presented both opportunities and challenges in its recent earnings call. In 2025, Yum China exhibited significant growth by opening over 1,700 net new stores, totaling more than 18,000 stores across 2,500 cities. Both same-store sales and system sales showed positive growth, with the latter improving to 7% in Q4, indicating a resilient market presence. The company reported an operating margin of 10.9% for the year, attributed to innovations and operational efficiency efforts. The performance of key brands, KFC and Pizza Hut, exceeded expectations. KFC achieved system sales growth of 8% in Q4 and 5% for the year. Innovative product launches and strategic pricing have played crucial roles in this success, especially in maintaining affordability amid rising delivery costs. Pizza Hut experienced a transformation with a 16% increase in same-store transactions and a 20% rise in operating profit.