百胜中国 2025年度报告

Dear Stockholders, Yum China delivered another year of strong performance in 2025 by navigating a dynamic macro environment andresponding nimbly to evolving consumer preferences. Having operated for 38 years in one of the world’s most vibrant restaurant markets, we’ve learned that sustainingexcellence requires agility and constant reinforcement of our foundations. OurRGM (Resilience, Growth, Moat) strategyhas enabled exactly that – guiding our growth and yielding robustresults in recent years. I will first highlight our 2025 performance and then outline the strategy that enabled theseresults – and by which we intend to navigate the next few years. Strong Financial Performance with Substantial Capital Returns In 2025, we opened1,706 net new stores, bringing our total footprint to 18,101 locations. This expansion includedentry into more than270 new cities, extending our reach to over 2,500 cities and towns across China. Moreimportantly, this rapid scaling came alongside improved operating results. We achieved solidgrowth in same-store sales, system sales and operating profitsall at the same time. It was not an easy task, but our team made ithappen. Total revenues grew 4% year-over-year to $11.8 billion, and system sales also increased 4%1for the full year,outperforming the restaurant industry in China. Same-store sales increased year-over-year for three consecutivequarters starting in Q2, andsame-store transactions grew for 12 straight quarters– a testament to the strengthof our brands and our sustained resilience. At the same time, restaurant margins for Yum China, as well as for KFC and Pizza Hut, increased year-over-year in2025.OP margin reached 10.9%for the full year, the highest level since our U.S. listing, excluding special items. Full-year operating profit grew 11% to $1.3 billion. We also delivered on ourcommitment to return capital to shareholders. After returning $1.5 billion in both 2024and 2025, we plan to return $1.5 billion again in 2026. This represents an annual capital return of around 9% of ourmarket capitalization2. With our strong cash generation and disciplined capital spending, we are well positioned to return around100% ofannual free cash flow(after dividend payments to non-controlling interests of our subsidiaries) from 2027 on. Our Strategy is Grounded in Our Core Philosophies We had an opportunity to describe our strategy in some detail at our Investor Day back in November 2025. Theresponse from investors was gratifying, and I want to take this opportunity to share the highlights with all shareholdersand stakeholders. Everything we do at Yum China is grounded in a set of values and beliefs, which I call our Core Philosophies. Theydefine our priorities, shape our decisions, and ultimately determine our success. Philosophy #1: Good Food at Value-for-Money Pricing I’m often asked: what drives our consistent, profitable growth? The answer lies as much in what we choose not to do.We have resisted the temptation to raise prices aggressively, recognizing early on that consumers have become morerational and value-conscious. Our actions reflect this belief. Since our 2016 listing, we have held effective prices3relatively stable at KFC, even asCPI (Consumer Price Index) rose by 13%. At Pizza Hut, we repositioned the brand toward the mass market with asignificantly more accessible price point.Our commitment to good food and great value-for-moneydrove strongtransaction growth. Compared to 2016, KFC transactions have grown by 40%, and Pizza Hut’s transactions havenearly doubled. Yum China’s restaurant margins have remained largely stable, while operating profit has expanded. Delivering both top- and bottom-line growth while holding or lowering prices is not easy. It requires transformationacross nearly every part of the business – from operations to supply chain to digital. But it reinforces a core truth:sustainable growth is built on delivering genuine value to customers. Philosophy #2: Build a Strong Foundation, Then Grow – Like a Bamboo Forest As we contemplate scaling further, I often reflect on bamboo. Its strength lies underground. For years, its roots growdeep and wide, forming a complex, interconnected system. When it finally emerges, it grows rapidly – up to a meter aday – before spreading outward and becoming a forest. Once a forest, it can weather storms with resilience. Our business follows a similar pattern. We have invested for many years in astrong “root system” of corecapabilities: supply chain, digital and membership ecosystems, food innovation, and organizational strength. Thesecapabilities support not only KFC and Pizza Hut but also emerging businesses such as KCOFFEE cafe and Lavazza,which are beginning to “break ground.” As they do, we aim to accelerate their growth. Bamboo teaches us patience and discipline: invest in the foundation, and trust that scale will follow. It also reminds usthat success is interconnected – like a forest’s root system, our busi