Yum China Holdings, Inc. reported an 8% rise in third-quarter revenue Tuesday despite a 3% drop in same-store sales, as its restaurant network approached 20,000 locations.
Revenue reached $3.477 billion for the quarter ended Sept. 30, compared with $3.206 billion a year earlier. Excluding currency-translation effects, revenue grew 2%, according to unaudited results included in a Form 8-K filed with the U.S. Securities and Exchange Commission.
Operating profit increased 13% to $451 million. Core operating profit rose 6% to $423 million excluding foreign-exchange impact, a separate measure from reported operating profit. Net income climbed 10% to $311 million.
Transactions at existing restaurants rose 3%, extending their growth streak to 15 quarters even as same-store sales declined. System sales increased 3% excluding foreign-exchange effects. CEO Joey Wat attributed the pressure on same-store sales partly to comparisons with a year-earlier period affected by delivery-platform subsidies and to adverse weather in August.
Yum China recorded a net gain of 692 stores, its largest quarterly addition. Franchisees made up 44% of the 692 locations added in the quarter, a record for the company. Its network stood at 19,989 locations on Sept. 30, and franchisees operated 19% of them. The company now aims for more than 2,400 net additions in 2026 and projects a year-end footprint above 20,500 locations.
The company said streamlined operations and favorable commodity prices supported restaurant margins. Value offers, weaker sales leverage and higher rider costs associated with a larger delivery mix worked against those gains. It also cited savings on Pizza Hut license fees.
The filing disclosed that Alexander Dimitrief, a partner at Zeughauser Group, will join Yum China’s board Wednesday, Nov. 4. The appointment will expand the board from 12 members to 13. Yum China said it considers Dimitrief independent and will provide a prorated annual retainer of $315,000, payable in company stock or, at his request, with up to half in cash.
Yum China said it returned $1.08 billion to shareholders in the first nine months of 2026 and remained on track to return $1.5 billion for the year. Shareholders recorded at the Dec. 1 close qualify for the $0.29-per-share payment, set for Dec. 22.
