Yum China Holdings Inc. (YUMC, Financial), a leading restaurant operator in China, has released its first-quarter 2025 financial results. The company's operating profit margin rose to 13.4%, marking the ninth consecutive quarter of same-store sales growth. By the end of March, Yum China operated 16,642 stores nationwide, maintaining its industry leadership.
Pizza Hut's system sales increased by 2% year-on-year, with restaurant profit margins improving by nearly 2 percentage points. Same-store sales surged by 17%. KFC's system sales saw a 3% year-on-year increase. The combined membership of KFC and Pizza Hut exceeded 540 million, contributing 66% to total sales.
In just two years, COFFii & JOY opened 1,000 stores, with 300 new locations added in the first quarter alone. By the end of 2025, the store count is expected to surpass 1,500.
Yum China is leveraging AI technology across various operations, from customer service to inventory management. AI has improved customer complaint resolution rates to 90% and aids in product management by adjusting strategies based on public sentiment analysis.
Looking ahead, Yum China plans to open 1,600 to 1,800 new stores in 2025. CEO Joey Wat emphasized the company's resilience and commitment to achieving its annual goals through efficiency and innovation.
