Fourth Quarter Operating Profit Grew 36% and OP Margin1 Expanded 140 Basis Points
Sequential Improvement in Same-Store Sales Index and Eighth Consecutive Quarter of Same-Store Transaction Growth
Full Year Operating Profit Rose 5% to $1.2 Billion, Core Operating Profit2 Up 12% and Diluted EPS Up 18%
Record 2024 Results: Total Revenues of $11 Billion, 1,751 Net New Stores and $1.5 Billion Capital Returned to Shareholders
SHANGHAI, Feb. 6, 2025 /PRNewswire/ — Yum China Holdings, Inc. (the “Company” or “Yum China“) (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the fourth quarter and year ended December 31, 2024.
Fourth Quarter Highlights
Full Year Highlights
1 OP margin refers to operating profit as a percentage of total revenues.
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. Please refer to “Reconciliation of Reported GAAP Results to Non-GAAP Measures” included in the accompanying tables of this release for further details.
3 Net new unit contribution refers to sales contribution from net new stores.
4 Digital sales refer to sales at Company-owned stores where orders were placed digitally.
Joey Wat, CEO of Yum China, commented, “We closed the year with a strong fourth quarter, propelling us to a number of record highs in 2024. In the fourth quarter, our system sales growth surpassed the restaurant industry’s growth rate. Our same-store sales index improved sequentially to 99% of prior year levels, driven by the eighth consecutive quarter of same-store transaction growth. OP margin expanded by 140 basis points, and restaurant margin increased by 160 basis points, both on a year-over-year basis. We have steadily improved our metrics since the second quarter, with improvement in same-store sales index, margins, and operating profit growth each quarter. These results demonstrate the resilience of our business and the effectiveness of our strategy in improving sales and profitability amid challenging market conditions.”
Wat continued, “Our dual focus on operational efficiency and innovation yielded excellent results, laying a solid foundation for future growth. Our Project Fresh Eye and Project Red Eye initiatives have given us new perspectives on our operations and transformed our organization. They have made us more efficient, agile and competitive across our restaurants, shared service centers and supply chains. Our innovative measures—from menu evolution to the introduction of breakthrough business models like KCOFFEE Cafes and Pizza Hut WOW—have expanded our addressable market and increased our market share. KFC has demonstrated considerable resilience and growth momentum. Pizza Hut has made significant progress in transforming itself to become more affordable for customers and more profitable for the Company.”
Wat concluded, “Looking ahead, we remain excited about the significant growth opportunities in China. With tailored store models, we are expanding through both Company-owned stores and franchise stores and are on track to achieve our goal of 20,000 stores by 2026. Franchisees enable us to expand into remote areas, lower-tier cities and strategic locations previously beyond our reach. We are also increasing our cash dividend by a considerable 50% and continuing our share repurchases, positioning us to return a total of $4.5 billion to shareholders between 2024 and 2026. The average annual amount is equivalent to 9% of our current market capitalization. Leveraging our unique strengths, we are confident the steps we are taking will help create sustainable long-term value for our shareholders.”
Key Financial Results
Fourth Quarter
Full Year
%/ppts Change
%/ppts Change
2024
2023
Reported
Ex F/X
2024
2023
Reported
Ex F/X
System Sales Growth (5) (%)
4
21
NM
NM
5
21
NM
NM
Same-Store Sales Growth (5) (%)
(1)
4
NM
NM
(3)
7
NM
NM
Operating Profit ($mn)
151
110
+36
+35
1,162
1,106
+5
+8
Adjusted Operating Profit (6) ($mn)
151
116
+29
+28
1,162
1,121
+4
+6
Core Operating Profit (6)(7) ($mn)
150
110
NM
+35
1,190
1,061
NM
+12
OP Margin (%)
5.8
4.4
+1.4
+1.4
10.3
10.1
+0.2
+0.3
Core OP Margin (6)(8) (%)
5.8
4.4
NM
+1.4
10.4
9.7
NM
+0.7
Net Income ($mn)
115
97
+18
+17
911
827
+10
+13
Adjusted Net Income (6) ($mn)
115
103
+11
+10
911
842
+8
+11
Diluted Earnings
Per Common Share ($)
0.30
0.23
+30
+27
2.33
1.97
+18
+22
Adjusted Diluted Earnings
Per Common Share (6) ($)
0.30
0.25
+20
+20
2.33
2.00
+17
+19
5 System sales and same-store sales percentages exclude the impact of F/X. Effective January 1, 2018, temporary store closures are normalized in the same-store sales calculation by excluding
the period during which stores are temporarily closed.
6 See “Reconciliation of Reported GAAP Results to non-GAAP Measures” included in the accompanying tables of this release for further details.
7 Current period amounts are derived by translating results at average exchange rates of the prior year period.
8 Core OP margin refers to core operating profit as a percentage of total revenues excluding F/X.
Note: All comparisons are versus the same period a year ago.
Percentages may not recompute due to rounding.
NM refers to not meaningful.
Capital Returns to Shareholders
o The Company returned $1.5 billion in capital to shareholders for the full year and $248 million in the fourth quarter.
o For the full year, Yum China repurchased 31.3 million shares of common stock, which is equivalent to approximately 8% of its outstanding shares as of December 31, 2023.
o As of December 31, 2024, approximately $1.3 billion remained available for future share repurchases under the current authorization program.
o The Board declared a 50% increase in the cash dividend, raising it to $0.24 per share on Yum China’s common stock, payable on March 27, 2025, to shareholders of record as of the close of business on March 6, 2025.
o The Company has entered into share repurchase agreements in the U.S. and Hong Kong for an aggregate repurchase amount of approximately US$360 million through open market transactions for the first half of 2025. The share repurchase agreements include approximately US$290 million under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934 in the U.S. and approximately HK$550 million for a similar program in Hong Kong.
KFC
Fourth Quarter
Full Year
%/ppts Change
%/ppts Change
2024
2023
Reported
Ex F/X
2024
2023
Reported
Ex F/X
Restaurants
11,648
10,296
+13
NM
11,648
10,296
+13
NM
System Sales Growth (%)
5
20
NM
NM
6
20
NM
NM
Same-Store Sales Growth (%)
(1)
3
NM
NM
(2)
7
NM
NM
Total Revenues ($mn)
1,954
1,872
+4
+4
8,509
8,240
+3
+5
Operating Profit ($mn)
192
167
+15
+15
1,192
1,202
(1)
+2
Core Operating Profit ($mn)
191
162
NM
+18
1,218
1,154
NM
+6
OP Margin (%)
9.9
8.9
+1.0
+1.0
14.0
14.6
(0.6)
(0.5)
Restaurant Margin (%)
13.3
12.0
+1.3
+1.3
16.9
17.7
(0.8)
(0.8)
Fourth Quarter:
Full Year:
Pizza Hut
Fourth Quarter
Full Year
%/ppts Change
%/ppts Change
2024
2023
Reported
Ex F/X
2024
2023
Reported
Ex F/X
Restaurants
3,724
3,312
+12
NM
3,724
3,312
+12
NM
System Sales Growth (%)
3
24
NM
NM
2
20
NM
NM
Same-Store Sales Growth (%)
(2)
6
NM
NM
(5)
6
NM
