Yum China plans expansion to 20,500 stores by 2026

Yum China Holdings has announced plans to expand its store network to more than 20,500 locations by the end of 2026, representing over 2,400 net new stores. The company expects capital expenditures between $600 million and $700 million and intends to return $1.5 billion to shareholders.

According to the company, 40% to 50% of new KFC and Pizza Hut locations will be franchised. As of September 30, 2024, the company operated 19,989 stores. Recent performance included an 8% revenue increase to $3.5 billion and a 13% rise in operating profit to $451 million. Same-store transactions grew by 3%, marking the 15th consecutive quarter of growth.

CEO Joey Wat noted that the company is capturing demand through various formats, including smaller-format concepts and increased takeaway convenience. Specific brand milestones include KCOFFEE surpassing 4,000 locations and Pizza Hut’s Burger Bar exceeding 300 locations.