Yum China Holdings Inc (YUMC)

[iHub News]

Taco Bell Owner Yum China Shares Climb After Q4 Results Beat Forecasts

February 4, 2026 8:23 AM
IH Market News

Yum China Holdings, Inc. (NYSE:YUMC) reported fourth-quarter results on Wednesday that came in ahead of market expectations, supported by solid same-store sales momentum and strong growth in delivery, lifting its shares in premarket trading.

The restaurant operator’s stock rose 1.50% ahead of the opening bell following the earnings release.

Adjusted earnings per share for the quarter totaled $0.40, exceeding analysts’ estimates of $0.37. Revenue increased 9% year on year to $2.82 billion, topping the consensus forecast of $2.72 billion.

During the quarter, system sales grew 7% from a year earlier, while same-store sales advanced 3%, marking the third straight quarter of positive comparable growth. Same-store transactions rose 4% year on year, extending a streak that now spans 12 consecutive quarters. Restaurant margin improved to 13.0%, up 70 basis points compared with the prior year.

“Our fourth quarter performance capped off 2025 on a high note. Thanks to our team’s hard work, we delivered same-store sales growth for three consecutive quarters and same-store transactions growth for twelve consecutive quarters,” said Joey Wat, CEO of Yum China.

Delivery continued to be a major growth driver, with sales jumping 34% year on year and accounting for roughly 53% of total company revenue, up from 42% in the same quarter last year. Yum China also opened a record 587 net new stores during the quarter, with franchisees responsible for 36% of the additions.

KFC, the group’s largest brand, posted an 8% increase in system sales, alongside 3% growth in same-store sales. Pizza Hut recorded a 6% rise in system sales, with same-store sales up 1%.

For the full year 2025, Yum China reported system sales growth of 4% and a 1% increase in same-store sales. The company added 1,706 net new locations over the year, bringing its total restaurant count to 18,101.

The board also approved a 21% increase in the cash dividend to $0.29 per share. Looking ahead, Yum China said it is targeting more than 20,000 stores in 2026 and aims to surpass 30,000 locations by 2030.

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Original: Taco Bell Owner Yum China Shares Climb After Q4 Results Beat Forecasts