Yum China Holdings Inc. (NYSE:YUMC) reported first-quarter results on Wednesday that came in ahead of expectations, with both earnings and revenue topping analyst forecasts.
Adjusted earnings per share reached $0.87, slightly above the $0.86 consensus estimate, while revenue totaled $3.27 billion, beating projections of $3.21 billion. Shares gained 2.03% in premarket trading following the announcement.
Revenue increased 10% year over year, or 4% excluding currency effects, compared with $2.98 billion in the same period last year.
The company opened a record 636 net new stores during the quarter—more than double the number added a year earlier—bringing its total footprint to 18,737 locations as of March 31, 2026.
Operating profit rose 12% year over year to $447 million, while operating margin improved by 30 basis points to 13.7%, marking the eighth consecutive quarter of margin expansion.
“We delivered solid results in a dynamic environment, and remain encouraged by early signs of improving consumer sentiment,” said Joey Wat. She added that the later timing of the Chinese New Year and an extended spring holiday in April affected same-store sales growth in the quarter, although combined March and April performance aligned with expectations.
Same-store sales were flat compared with the prior year, reaching 100% of previous levels, while same-store transactions increased 2% year over year—extending a streak of growth to 13 consecutive quarters.
Delivery sales jumped 31% year over year and accounted for roughly 54% of total revenue, up from 42% in the same quarter last year.
KFC system sales rose 5% year over year, with same-store sales increasing 1%, marking the fourth straight quarter of growth. The brand added 457 net new locations, a 55% increase from the prior year.
Pizza Hut system sales grew 4% year over year, while operating profit surged 18% to $71 million.
For 2026, Yum China is targeting more than 20,000 total stores, implying over 1,900 net new openings, with planned capital expenditures of $600 million to $700 million. The company also remains on track to return $1.5 billion to shareholders during the year.