Yum China, operator of KFC, Pizza Hut, and other food and beverage brands, has reported strong growth for the second quarter of 2025, driven by network expansion, same-store sales increases, and digital innovation.
For the quarter ending June 30, revenue reached US$2.8 billion, a 4% year-on-year increase, supported by a growing network of nearly 17,000 locations. Yum China opened 336 new stores during the quarter, including 89 franchise-operated outlets, bringing its total store count to 16,978 — with 12,238 KFC and 3,864 Pizza Hut outlets.
“We delivered double-digit growth in operating profit and substantially expanded our margins,” said Joey Wat, CEO of Yum China.
Operational Performance & Profit Growth
Operating profit rose 14% year-on-year to $304 million, marking the highest second-quarter operating profit in the company’s history. Core operating profit also increased 14% from the previous year. Yum China returned $274 million to shareholders through share repurchases and dividends, demonstrating both operational strength and shareholder focus.
Digital and Delivery Leadership
Digital innovation continues to drive Yum China’s success. Digital sales accounted for 94% of total company revenue, reaching $2.4 billion for the quarter. Delivery sales grew 22% year-on-year, contributing nearly 45% of total system sales. Membership across KFC and Pizza Hut expanded to approximately 560 million, up 13% from the previous year, with members generating 64% of total system sales.
“We are fortifying our end-to-end digitalisation to streamline operations and elevate our customer experience,” added Wat.
What This Means for Franchisees and Investors
Yum China’s strong performance highlights the opportunities available for both existing and potential franchise partners. With nearly one in four new stores operated by franchisees, there is clear demand for scalable franchise models backed by strong brand recognition, operational excellence, and innovative digital engagement.
How Star Brands Consulting Group Can Help
At Star Brands Consulting Group, we help global and regional F&B brands, investors, and franchise partners navigate growth opportunities in Asia and worldwide. Our services include:
- Franchise development and multi-unit expansion strategy
- Market research, feasibility studies, and location analysis
- Investor matchmaking and franchisee recruitment
- Digital strategy, operational optimization, and brand positioning
Whether you are a brand seeking to scale in competitive markets like China or an investor exploring high-potential F&B franchises, Star Brands Consulting Group provides end-to-end guidance to ensure profitable, sustainable growth.