Yum China sees Q4 boost from delivery boom and store expansion

KFC Green Pioneer Store in Beijing — KFC opened 1349 net new stores last year. (Source: Yum China)

By Irene Dong February 5, 2026

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Yum China Holdings closed FY25 on a solid footing, with delivery growth and accelerated store expansion driving higher sales and profits despite subdued consumer spending in China.

For the quarter ended December 31, the company, which operates KFC, Pizza Hut and other restaurant brands across mainland China, reported revenue of US$2.8 billion, up 9 per cent year on year.

Same-store sales increased 3 per cent, marking the company’s third consecutive quarter of positive comparable growth, while system sales rose 7 per cent.

Delivery continued to be a major growth driver, with delivery sales jumping 34 per cent and accounting for around 53 per cent of total revenue. The shift towards digital ordering and convenience remains central to Yum China’s strategy, particularly given uneven dine-in traffic across regions.

Store expansion also underpinned performance. Yum China opened a record 587 net new restaurants in the fourth quarter, with approximately 36 per cent opened by franchise partners. For the full year, the group added 1706 net new stores, taking its total footprint to more than 18,100 restaurants nationwide.

For FY25, Yum China reported revenue of US$11.8 billion, up 4 per cent year on year, while operating profit rose 11 per cent to approximately US$1.3 billion.

“Our fourth quarter performance capped off 2025 on a high note. Thanks to our team’s hard work, we delivered same-store sales growth for three consecutive quarters and same-store transactions growth for twelve consecutive quarters,” said Joey Wat, CEO of Yum China.

Wat said KFC continued to unlock new consumption occasions through its KCoffee cafe format and Kpro side-by-side modules, while Pizza Hut strengthened its value proposition and rolled out its Wow model to expand into previously untapped locations, particularly in lower-tier cities.

Looking ahead, the company is targeting more than 20,000 restaurants in operation by the end of this year, supported by the opening of more than 1900 net new stores. Yum China expects franchised outlets to account for 40 to 50 per cent of net new openings across both KFC and Pizza Hut, as it continues to expand its hybrid ownership model.