Yum China (NYSE:YUMC) Announces Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Yum China (NYSE:YUMC) released its quarterly earnings results on Wednesday. The company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.05, FiscalAI reports. Yum China had a return on equity of 14.08% and a net margin of 7.81%.The business had revenue of $2.82 billion during the quarter, compared to analyst estimates of $2.72 billion. During the same period in the prior year, the firm posted $0.30 EPS. Yum China’s quarterly revenue was up 8.8% compared to the same quarter last year.

Here are the key takeaways from Yum China’s conference call:

• Store growth and sales momentum: Yum China opened more than 1,700 net new stores in 2025 (>18,000 total) and expects to exceed 20,000 stores in 2026, while same‑store sales were positive for three consecutive quarters and Q4 system sales grew 7%.
• Profitability improvement: Full‑year operating profit rose 11% to $1.3B, OP margin expanded to 10.9% (highest since the U.S. listing excluding special items), Q4 operating profit grew 23%, and ROIC increased to 17.3%.
• Strong shareholder returns: Management returned $1.5B in 2025, committed to $1.5B annually through 2026, raised the quarterly dividend by 21% and initiated a $460M repurchase for H1 2026, with plans to return ~100% of free cash flow from 2027 onward.
• Delivery mix and cost pressure: Delivery mix rose to ~53% in Q4, driving higher rider/labor costs; the company expects delivery mix to increase further in 2026 and warned of tougher Q1 margin comparisons and smaller commodity cost tailwinds.
• New formats, modules and tech for growth: Management is scaling K‑Coffee (2,200 locations), expanding K‑Pro, piloting Gemini KFC/Pizza Hut side‑by‑side pairs and accelerating franchising (franchise mix of new openings rose to 36%), while deploying Gen AI (QSmart, Smart K) to boost efficiency and customer engagement.

Yum China Stock Performance

NYSE:YUMC traded up $1.40 on Wednesday, reaching $52.14. 536,808 shares of the company’s stock were exchanged, compared to its average volume of 1,120,031. The firm has a market cap of $18.84 billion, a price-to-earnings ratio of 21.63, a P/E/G ratio of 1.62 and a beta of 0.14. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.32 and a quick ratio of 1.15. The stock has a fifty day simple moving average of $48.17 and a 200-day simple moving average of $46.03. Yum China has a 52 week low of $41.00 and a 52 week high of $53.99.

Analyst Ratings Changes

YUMC has been the subject of a number of recent analyst reports. CLSA reaffirmed an “outperform” rating and issued a $55.00 price objective on shares of Yum China in a research report on Tuesday, November 25th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Yum China in a report on Wednesday, January 21st. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $55.00.

Insider Buying and Selling at Yum China

In other news, insider Jeff Kuai sold 5,167 shares of the firm’s stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $48.00, for a total value of $248,016.00. Following the completion of the transaction, the insider directly owned 56,602 shares of the company’s stock, valued at $2,716,896. This trade represents a 8.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Duoduo (Howard) Huang sold 4,888 shares of the stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $48.10, for a total value of $235,112.80. Following the sale, the insider directly owned 22,510 shares in the company, valued at $1,082,731. This trade represents a 17.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 18,242 shares of company stock valued at $878,397 in the last 90 days. 0.40% of the stock is currently owned by company insiders.

Institutional Trading of Yum China

Several institutional investors and hedge funds have recently made changes to their positions in YUMC. Caitong International Asset Management Co. Ltd grew its position in Yum China by 147.4% in the third quarter. Caitong International Asset Management Co. Ltd now owns 945 shares of the company’s stock worth $41,000 after acquiring an additional 563 shares in the last quarter. Quarry LP purchased a new position in shares of Yum China in the 3rd quarter worth about $45,000. Advisory Services Network LLC bought a new position in shares of Yum China during the 3rd quarter valued at about $56,000. Parallel Advisors LLC raised its holdings in shares of Yum China by 33.1% during the 3rd quarter. Parallel Advisors LLC now owns 1,386 shares of the company’s stock valued at $59,000 after buying an additional 345 shares in the last quarter. Finally, Geneos Wealth Management Inc. lifted its position in Yum China by 29.5% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,452 shares of the company’s stock worth $65,000 after buying an additional 331 shares during the last quarter. Hedge funds and other institutional investors own 85.58% of the company’s stock.

Yum China announced that its Board of Directors has initiated a share buyback plan on Friday, December 12th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

Yum China Company Profile

Yum China Holdings, Inc operates as the largest quick-service restaurant company in China, through its ownership and franchising of brands such as KFC, Pizza Hut and Taco Bell. The company’s core business encompasses full-service and fast‐casual dining, takeout and delivery channels, as well as ancillary services including loyalty programs and digital ordering platforms. Yum China’s restaurants offer a diverse menu that adapts global brand concepts to local consumer preferences, featuring items such as soy‐marinated chicken, customized pizzas and region‐inspired side dishes.

In addition to its signature brands, Yum China has expanded its portfolio to include innovative concepts tailored to evolving market trends, such as plant‐based offerings, self‐service kiosks and mobile app integrations.