• Reported GAAP EPS of $0.40 up 33.33% YoY • Reported revenue of $2.82B up 8.79% YoY • Yum China targets over 20,000 total stores by 2026, adding 1,900+ net new stores with 40-50% franchised. The company plans $600-$700 million in capex and $1.5B in shareholder returns.
Bullish
Yum China achieved robust Q4 revenue and operating profit growth, driven by significant store expansion and increased delivery sales. The company also improved margins and committed to substantial shareholder returns.
Bearish
Yum China faced margin pressures at KFC and Pizza Hut due to increased delivery costs and value-for-money offerings. The company also experienced a notable decrease in cash and long-term bank deposits.