Second Quarter 2025 Results August 5, 2025

NYSE: YUMC and HKEX: 9987





Same-store Sales Growth Turned Positive Operating Profit and OP Margin Hit New Highs in Q2

Sales Improvement

Margin Expansion

Solid Profit Growth



System sales growth1

+4%

Same-store sales growth1

+1%

OP

Margin

10.9%

Restaurant Margin

Record Q2 OP $304mn OP / Core OP2 YoY

+14%

Diluted EPS Grew to $0.58

16.1%

Sequentially Improved

Q2 YoY

First quarter of growth since Q1 2024

+15%

Excl. Mark-to-market impact & F/X

Q2 YoY

+5%

+100 bps +60 bps

Q2 YoY

10th consecutive quarter of Same-store transaction growth, +2% YoY

1 Excludes the impact of foreign exchange ("F/X").

2 Core Operating Profit is defined as Operating Profit adjusted for Special Items, further excluding Items Affecting Comparability and the impact of F/X. The Company uses Core Operating Profit for the purposes of

evaluating the performance of its core operations. 3



Total Stores

>15,000

4 years

>10,000

8 years

>5,000

25 years

1



16,978

Net new stores

336 in Q2

583 in 1H



Rapid and High-quality Footprint Growth

Net new unit contribution to system sales

4% in Q2



1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

25'1H

4





Capturing Growth Potential Through Flexible Store Formats and Franchising


Total Stores Net New Stores

in 1H

Penetrate More Locations Leveraging Franchisees Strategically

Reduced Average Capex1

Healthy New Store Payback2

12,238

14% Franchise

3,864

6% Franchise

590

41% Franchise

140

26% Franchise

2,400+

Cities with KFC

900+

Cities with Pizza Hut

~300

New cities entered in last 12 months

~150

New cities entered in last 12 months

~1.4 mn RMB / store

(From ~1.5 mn)

~1.1-1.2 mn RMB / store

(From ~1.2 mn)

~2 years

~2-3 years

1 Refers to stores opened in 1H 2025.

2 Refers to Average Pre-tax Cash Payback Period assuming yearly cashflow is same as year 1, after deduction of 3% license fee and before G&A expenses and income tax; based on stores opened between April 2023

to March 2024. 5





Delivery Sales Continued to Achieve Solid Growth


~44%

~38%

~18%

+18%

YoY in 1H

1H'19

1H'24

1H'25

~29%

~29%

~27%

~29%

~33%

~53%

Delivery Sales +17%1 YoY in 1H

  • Increased exposure for our emerging businesses (e.g., KCOFFEE Cafe) and attracted new customers to core brands on delivery platforms

  • Driving top-line through a balanced approach that manages price perception and protects profitability



+14%

YoY in 1H

1 Delivery sales at Company-owned stores.

Sales mix by channels

% of Company sales

~42%

~38%

~24%

~5%

~10%

~10%

~48%

~52%

~71%



1H'19 1H'24 1H'25

Dine-in

Takeaway
Delivery

6



Digital Sales Exceeded $5bn in 1H 2025

Member Growth

Digital Sales Growth2

Strengthen Own Channels

Digital orders1

Members (mn) 3

Member sales % 4

80%

86%

93%

89% 89% 90%

52%

60%

63% 62% 65% 65% 65%

~560

470+ 525+

410+

55%

240+

360+

300+

Super APP

al orderin ed deliver

Higher digit by increas

g driven y mix

Mini

2019 2020 2021 2022 2023 2024 2025 1H

1 Digital ordering of total Company sales.

2 Sales at Company-owned stores where orderings were placed digitally.

3 KFC and Pizza Hut loyalty programs combined, as of period-end.

2019 2020 2021 2022 2023 2024 2025 1H

Program

4 As a percentage of KFC and Pizza Hut's system sales in aggregate. From 2022, in addition to transactions in which members self-identified as members (i.e., through member QR code, using member coupons/ vouchers, ordering via Super-Apps or other own channels), member sales also include 1) transactions in which members order using our coupons/vouchers through third party e-commerce platforms, 2) Pizza Hut tableside orders paid through POS terminals, provided members could otherwise be identified as members. 2021 data restated to reflect this change. Before restatement, it was 61% in Q2 2021 for KFC and Pizza Hut

combined. 7





KFC Continued to Achieve Solid Growth and Profitability

Q2 2025

+5%

+1%

14%

+11%

+10%

System sales

Same-store sales

OP margin

OP growth

Core OP

growth YoY

growth YoY

+90 bps YoY

YoY

growth YoY

`

295

Net new stores

12,238

Total stores

$292mn

Operating profit

16.9%

Restaurant margin

+70 bps YoY

8

Photo: Shanghai Oriental Pearl store (上海东方明珠店)







Focus on Innovative Food, Great Value and Emotional Appeal

Adding Creative Twists to Our Classic Favorites Abundant Value and Emotional Engagement

Zinger sales increased by 30%+

(during promotion vs. Jan-May weekly avg.) 9









KCOFFEE Cafe Reached 1,300 Locations

Expanding Dayparts: "Morning Coffee

Photo: KFC Basketball theme store in Suzhou Olympic Sports Centre (苏州体育中心篮球店)

& Afternoon Tea"

10





Pizza Hut Sustained Positive Momentum

Q2 2025

+3%

System sales growth YoY

+2%

Same-store transaction growth of 17% YoY

Same-store sales growth YoY

8.3%

OP margin

+90 bps YoY

+16%

OP growth YoY

+15%

Core OP growth YoY

95

Net new stores

3,864

Total stores

$46mn

Operating profit

13.3%

Restaurant margin

+10 bps YoY

5th consecutive quarter of YoY margin expansion

11

Photo: Jinan Qinglong Bridge store (济南青龙桥店)



Introducing New Pizza Variety with Excellent Value-for-money




Broadening Customer Base with Wider Price Ranges and Enhanced Menu

All-You-Can-Eat

Pizza Hut WOW Menu

Popular IP Collaborations

Creamy Pasta

Japanese-style Mochi Dango

Calabria-style Spicy Spicy Chicken Pizza

Lemon Black Tea

Hokkaido-style Rich Curry Tender Chicken Baked Rice

Spicy Chicken Melts

13





Pizza Hut WOW Model Made Progress Expanding into Lower-tier Cities

New WOW stores with latest Capex ranging RMB 650,000 to 850,000

14

Photo: Pizza Hut WOW in Huizhou Lanwan (惠州蓝湾店)







Significant Capital Returns to Shareholders

Returned

Since Spin-off

~$5bn



Capital Returns to Shareholders1

$mn

FY Target2 at least 1,200

1,490

833

668

473

442

166

278

102

2017 2018 2019 2020 2021

Dividends

2022 2023 2024

Share repurchase

356

180

2025

1H

536



Target Capital Returns2

$4.5bn



in 2024-26

$3bn

in 2025-26

Net Cash3

(By end of June 2025)

Avg. annual capital return

~9% of market cap4

$2.8bn

1 Includes dividends and share repurchases. Share repurchase amount excludes 1% excise tax and commissions.

2 Based on current expectations, which may change based on market conditions, capital needs or otherwise. Subject to Board approval on dividends and share repurchases, as well as shareholders' approval on share repurchases.

15

3 Refers to $592mn cash and cash equivalents, $1,563mn short-term investments and $626mn long-term bank deposits and notes.

4 Market capitalization as of Aug 4, 2025.





Appendix

16





Second Quarter Grew YoY and vs 2019

Second Quarter

2019

2024

2025

2025 vs

2024 2025 vs 2019

No. of Stores

8,751

15,423

16,978

+10%

+94%

Total Revenues ($ mn)

2,124

2,679

2,787

+4%



+31%



Members (mn)

210+

495+

~560

+13%

+167%

Member Sales %

52%

65%

64%

(1) ppt



~ +12ppt

Operating Profit ($ mn)

204

266

304

+14%

+49%

OP Margin (% of revenue)

9.6%

9.9%

10.9%

+1ppt



+1.3ppt



Note: The comparison of revenue and operating profit include the impact of foreign exchange. 17





Sales and Profit Grew YoY in Second Quarter

Revenue/Sales YoY

Total Revenue ($bn)



Key factors for Revenue year-over-year change

+ Net new unit contribution

+ Same-store sales growth



Revenue growth (reported) +4%

Revenue growth (ex F/X) +4% System sales growth +4%

2.68 2.79

24'Q2 25'Q2



Key factors for Core OP year-over-year change

+ Net new unit contribution

+ Favorable commodity prices

+ Efficiency improvement from streamlined operations

+ Sales leveraging

+ G&A expense savings

  • Increased value-for-money offerings

  • Wage inflation

  • Higher delivery cost due to increased delivery mix



$mn

24'Q2

25'Q2

Operating Profit

266

304

Special items

-

-

Items affecting comparability

-

-

Foreign currency translation

-

(1)

Core operating profit

266

303

Operating Profit/Core OP YoY

OP growth (reported)

+14%

OP growth (ex F/X)

+14%

Core OP growth

+14%

18





Second Quarter Key Performance Highlights - KFC & Pizza Hut

25'Q2

YoY Sales Growth

Channel Mix

Members

Digital orders

System Sales YoY

Same-store sales YoY

Same-store transactions YoY

Average ticket YoY

Delivery

Total off-premise

Million

Member sales %

Sales %

+5% +1% Even +1%

45% 72%

520+ 65%

94%

25'Q2 RMB 38 Relatively 24'Q2 RMB 37 stable

+3% +2% +17% (13)%

43% 52%

200+ 59%

93%

25'Q2 RMB 76 In line with strategy to 24'Q2 RMB 88 target mass market



19



Key ESG Initiatives

Food

Environment

People

Community

Food Safety as Top Priority

End-to-end food safety and quality management system with tech-enabled controls across the value chain

Healthy & Balanced Meals

Offer healthier, more balanced choices and diverse menu options to support a healthy lifestyle

* as of Jun 30, 2025

Climate Action

China's first restaurant company with approved near-term SBTs and committed to achieving

net-zero by 2050

Circular Economy

Strive to create "zero-waste restaurants" by adhering to the 4R principle (Reduce, Reuse, Replace, Recycle)

"People First" Philosophy

Provide comprehensive support to ensure the wellbeing of employees - e.g., medical insurance coverage for RGMs, eligible employees, and their families

Diversity, Equity & Inclusion

Foster a fair and inclusive workplace;

70+ "Angel Restaurants" nationwide*

Rural Revitalization

One Yuan Donation - 18 years of commitment, RMB270mn+ raised benefitted 1mn+ children*

Community Support

Food banks in ~1,050 locations across 180+ cities* Little Migratory Birds Fund benefitted 6mn+ children*

20





  • Industry No.1 in S&P Global 2024 Corporate Sustainability Assessment

  • The only Mainland China consumer services company included in the DJSI World

    ESG Ratings and Awards

    "China Top Employer" for the 7th Year

    #2 in China





Industry No.1 on DJSI for the 5th Year

  • #1 in the restaurant industry for the 4th year

  • #2 in China, among 156 companies

Support UN SDG

Industry Highest Ranking

Industry Leader

21



YUM China's Distinct Competitive Advantages

Resilience and profitability

Sustained strong momentum in good times and bad

Tremendous growth potential

Target 20,000 stores

by 2026

Significant capital returns to shareholders

Target to return

~$4.5bn in 2024-20261

Commitment to Building Long-lasting Excellence

Operational efficiency and discipline

Project Fresh Eye & Red Eye transformed the business ahead of times

Innovation & consumer-centric mindset

Good food, great value & breakthrough business models

Integrated supply chain mgmt system

Key enabler of food safety, innovations & cost competitiveness

Pioneering end-to-end digitalization

Embrace & unleash the power of technologies

1 Based on current expectations which may change based on market conditions, capital needs or otherwise. Subject to Board approval on dividends and share repurchases, as well shareholders' approval on share repurchases

22







(in $mn)

Yum China

Reconciliation of Operating Profit to Core Operating Profit*

Reconciliation of Operating Profit to Core Operating Profit

Quarter ended

6/30/2025 6/30/2024

% Change

B/(W)

Year to Da

6/30/2025

te Ended

6/30/2024

% Change

B/(W)

Operating Profit

Special Items, Operating Profit Adjusted Operating Profit

$ 304

-

$ 304

$ 266

-

$ 266

14

14

$ 703

-

$ 703

$ 640

-

$ 640

10

10

Items Affecting Comparability

-

-

-

-

F/X impact

(1)

-

5

-

Core Operating Profit

$ 303

$ 266

14

$ 708

$ 640

11

Total revenues

2,787

2,679

4

5,768

5,637

2

F/X impact

(7)

-

31

-

Total revenues, excluding the impact of F/X

$ 2,780

$ 2,679

4

$ 5,799

$ 5,637

3

Core OP margin

10.9%

9.9%

1.0

ppts

12.2%

11.4%

0.8

ppts.

* Current period amounts are derived by translating results at average exchange rates of the prior year period. 23





(in $mn)

Reconciliation of Operating Profit to Core Operating Profit

KFC

Quarter Ended 6/30/2025 6/30/2024

Year to Date Ended 6/30/2025 6/30/2024

GAAP Operating Profit

Special Items, Operating Profit Adjusted Operating Profit Items Affecting Comparability

$ 292

-

$ 292

-

$ 264

-

$ 264

-

$ 678

-

$ 678

-

$ 636

-

$ 636

-

F/X impact

Core Operating Profit

(1)

$ 291

-

$ 264

4

$ 682

-

$ 636

Pizza Hut

Quarter Ended 6/30/2025 6/30/2024

Year to Date Ended 6/30/2025 6/30/2024

GAAP Operating Profit

Special Items, Operating Profit Adjusted Operating Profit Items Affecting Comparability

$ 46

-

$ 46

-

-

$ 46

$ 40

-

$ 40

-

-

$ 40

$ 106

-

$ 106

-

$ 87

-

$ 87

-

-

$ 87

F/X impact

Core Operating Profit

1

$ 107

24





Reconciliation of Operating Profit to Restaurant Profit

(in $mn)

Yum China

Quarter Ended 6/30/2025 6/30/2024

Year to Date Ended 6/30/2025 6/30/2024

GAAP Operating Profit

$ 304

$ 266

$ 703

$ 640

Less:

Franchise fees and income

24

22

51

47

Revenues from transactions with franchisees

115

96

236

203

Other revenues

35

33

67

65

Add:

General and administrative expenses

131

133

269

273

19

Franchise expenses

10

9

21

Expenses for transactions with franchisees

110

92

227

196

Other operating costs and expenses

30

29

59

58

14

Closures and impairment expenses, net

12

13

18

(1)

Other income, net

(1)

-

(1)

$ 884

Restaurant profit

$ 422

$ 391

$ 942

Company sales

2,613

2,528

5,414

5,322

Restaurant margin %

16.1%

15.5%

17.4%

16.6%

25





Reconciliation of Operating Profit to Restaurant Profit

(in $mn)

KFC

Quarter Ended 6/30/2025 6/30/2024

Year to Date Ended 6/30/2025 6/30/2024

GAAP Operating Profit

$ 292

$ 264

$ 678

$ 636

Less:

Franchise fees and income

19

16

40

34

Revenues from transactions with franchisees

17

12

33

26

Other revenues

1

3

2

8

Add:

General and administrative expenses

61

60

120

121

17

Franchise expenses

9

8

19

Expenses for transactions with franchisees

15

11

29

23

Other operating costs and expenses

1

2

2

6

7

Closures and impairment expenses, net

8

6

13

$ 742

Restaurant profit

$ 349

$ 320

$ 786

Company sales

2,059

1,983

4,267

4,176

Restaurant margin %

16.9%

16.2%

18.4%

17.8%

26





Reconciliation of Operating Profit to Restaurant Profit

(in $mn)

Pizza Hut

Quarter Ended 6/30/2025 6/30/2024

Year to Date Ended 6/30/2025 6/30/2024

GAAP Operating Profit

$ 46

$ 40

$ 106

$ 87

Less:

Franchise fees and income

2

2

4

4

Revenues from transactions with franchisees

1

1

3

2

Other revenues

6

7

13

12

Add:

General and administrative expenses

26

27

52

54

2

Franchise expenses

1

1

2

Expenses for transactions with franchisees

1

1

3

2

Other operating costs and expenses

5

6

11

11

5

Closures and impairment expenses, net

3

5

3

$ 143

Restaurant profit

$ 73

$ 70

$ 157

Company sales

545

530

1,129

1,117

Restaurant margin %

13.3%

13.2%

13.9%

12.8%

27



Largest restaurant company in China1

Fortune 500

company

16,000+

restaurants

2,400+

cities in China





About Yum China

6 restaurant brands

Vision: To be the world's most innovative pioneer in the restaurant industry

Company website: https://http://ir.yumchina.com

Investor Relations Contact: IR@YumChina.com Tel: +86 21 2407 7556

Media Contact: Media@YumChina.com Tel: +86 21 2407 8288 / +852 2267 5807

1 In terms of system sales. 28



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Yum China Holdings Inc. published this content on August 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 05, 2025 at 09:03 UTC.