Yum China revenue climbs 10% to $3.3B driven by record store expansion

Yum China Holdings (NYSE:YUMC), the largest restaurant company in China, reported financial results for the first quarter ended March 31, 2026, showcasing a strategy of aggressive physical expansion and digital dominance.

The company posted total revenues of $3.3 billion, a 10% increase year-over-year (4% excluding foreign exchange impacts), as its massive footprint continues to scale across lower-tier cities.

The quarter was defined by a record-breaking pace of development, with 636 net new store openings, bringing the company’s total store count to 18,737.

This expansion helped drive an operating profit of $447 million, a 12% increase from the prior-year period.

Diluted earnings per share (EPS) rose 13% to $0.87, reflecting enhanced operational efficiencies and the company’s ability to maintain margins despite a complex macroeconomic backdrop.

Digital and delivery services remained the primary engine of consumer engagement.

Delivery sales grew 31% year-over-year, now accounting for approximately 54% of total company sales.

While same-store sales remained flat compared to the previous year, same-store transactions rose 2%, indicating that the brand continues to attract higher foot traffic through value-driven promotions and menu innovation.

Yum China remains highly committed to capital returns.

During the first quarter, the company returned $316 million to shareholders through a combination of share repurchases and dividends.

Management reiterated its plan to return a total of $1.5 billion in 2026—representing roughly 9% of its current market capitalization.

In line with this commitment, the Board of Directors declared a cash dividend of $0.29 per share, payable on June 17, 2026, to shareholders of record as of May 27, 2026.