Yum China reports $3.48 billion in Q3 revenue, up 8%
Key points
- Yum China reported third-quarter revenue of $3.477 billion, up 8% year over year, while operating profit increased 13% to $451 million.
- Operating margin expanded to 13.0%, while same-store sales declined 3% despite a 3% increase in customer transactions.
- Yum China raised its 2026 net new store target to more than 2,400 and expects to return $1.5 billion to shareholders during the year.
Yum China (NYSE:YUMC) reported third-quarter 2026 revenue of $3.477 billion, up 8% year over year, as operating profit increased 13% to $451 million.
Revenue grew 2% excluding currency effects, while diluted earnings per share increased 20% to $0.91 and operating margin expanded 50 basis points to 13.0%.
Same-store sales declined 3% despite a 3% increase in customer transactions, indicating that higher transaction volumes did not translate into comparable restaurant sales growth.
The company repurchased $263 million in shares and paid $99 million in dividends during the quarter, while its board authorized an additional $1 billion in repurchases, leaving approximately $1.3 billion available.
Yum China raised its 2026 net new store target to more than 2,400 and maintained planned capital expenditure of approximately $600 million–$700 million, while expecting shareholder returns of $1.5 billion during the year.
The company completed its acquisition of the Pizza Hut brand in Mainland China on August 7, 2026, expanding its ownership of a restaurant brand it already operated across the country.
Yum China operates KFC, Pizza Hut and other restaurant brands across China, with its expansion strategy combining new locations, franchise development, digital ordering and delivery services.
