Yum China is stepping up its store expansion across Mainland China, raising its 2026 opening target to more than 2400 restaurants as it broadens its retail footprint through new formats and food categories.

The company reported an 8 per cent year-on-year increase in third-quarter revenue to US$3.5 billion, while operating profit climbed 13 per cent to $451 million. 

The KFC and Pizza Hut operator opened a record 692 net new stores in the third quarter, bringing its total network to 19,989 outlets. It now expects to exceed 20,500 locations by year-end, putting it on track towards its longer-term target of 30,000 stores by 2030.

“We continue to build our brand and attract more customers to our stores through compelling in-store-only offers and experience, and greater takeaway convenience,” said Joey Wat, CEO of Yum China. 

The expansion is supported by growth in adjacent concepts. KCoffee, KFC’s cafe format, surpassed 4000 locations, while Kpro, its light-meal concept, exceeded 700 outlets across about 250 cities. Pizza Hut’s Burger Bar also expanded beyond 300 locations, with plans to reach 1000 by next year.

“Our side-by-side modules tap into large, fast-growing categories, such as light meals and burgers, where our trusted brand, national store network and supply chain give us a natural advantage,” Wat added. 

More than half of new stores opened during the first nine months were located in new cities, strategic locations or underserved trade areas. The company is also developing smaller formats, including KFC Small Town and Pizza Hut Wow, to reach consumers in lower-tier cities.

Following its acquisition of the Pizza Hut brand in mainland China in August, Yum China plans to increase annual net new Pizza Hut openings to more than 800 next year and in 2028, up from its previous target of more than 600.

• Further reading: Yum China eyes Lavazza’s physical expansion in Hong Kong.