$YUMC · Yum China Holdings, Inc.
Yum China filed its Q3 FY2026 10-Q. Total revenues rose 8.5% to $3.477B (2% ex-F/X), operating profit grew 13% to $451M, and net income attributable to Yum China increased 10% to $311M. Diluted EPS was $0.91 versus $0.76. The company completed the Pizza Hut brand acquisition in August 2026, ending Pizza Hut license fees payable to YUM.
- Q3 revenue $3.477B, +8.5% reported (+2% ex-F/X).
- Diluted EPS $0.91, up 20% from $0.76.
- Operating profit $451M, +13%; operating margin 13.0% vs 12.5%.
- Completed Pizza Hut brand acquisition in August 2026, eliminating Pizza Hut license fees to YUM.
- KFC 14,307 stores and Pizza Hut 4,740 restaurants in China as of Sept 30, 2026.
Stock closed +3.82% at $49.68; extended-hours last trade $50.00 (+0.64% vs close), a modestly positive reaction to solid results and the Pizza Hut acquisition.
Strong double-digit EPS growth plus the completed Pizza Hut acquisition (ending license fees) mark a structural margin tailwind for China's largest restaurant operator.
Yum China's 8.5% revenue growth and 20% EPS growth outpace many global quick-service peers, aided by franchise store acceleration and the Pizza Hut brand ownership.
F/X headwinds cut reported growth (revenue +2% ex-F/X); interest income fell 70% on lower investment balances from shareholder returns and lower rates.