Yum China Holdings, Inc.
Segment Results
(in US$ million)
(unaudited)
Quarter Ended 6/30/2025
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
Company sales
$ 2,059
$ 545
$ 9
$ —
$ —
$ 2,613
Franchise fees and income
19
2
3
—
—
24
Revenues from transactions with franchisees(2)
17
1
17
80
—
115
Other revenues
1
6
172
17
(161)
35
Total revenues
$ 2,096
$ 554
$ 201
$ 97
$ (161)
$ 2,787
Company restaurant expenses
1,710
472
9
—
—
2,191
General and administrative expenses
61
26
8
36
—
131
Franchise expenses
9
1
—
—
—
10
Expenses for transactions with franchisees(2)
15
1
16
78
—
110
Other operating costs and expenses
1
5
168
17
(161)
30
Closures and impairment expenses, net
8
3
1
—
—
12
Other income, net
—
—
—
(1)
—
(1)
Total costs and expenses, net
1,804
508
202
130
(161)
2,483
Operating Profit (Loss)
$ 292
$ 46
$ (1)
$ (33)
$ —
$ 304
Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:
Quarter Ended 6/30/2025
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
GAAP Operating Profit (Loss)
$ 292
$ 46
$ (1)
$ (33)
$ —
$ 304
Less:
Franchise fees and income
19
2
3
—
—
24
Revenues from transactions with franchisees(2)
17
1
17
80
—
115
Other revenues
1
6
172
17
(161)
35
Add:
General and administrative expenses
61
26
8
36
—
131
Franchise expenses
9
1
—
—
—
10
Expenses for transactions with franchisees(2)
15
1
16
78
—
110
Other operating costs and expenses
1
5
168
17
(161)
30
Closures and impairment expenses, net
8
3
1
—
—
12
Other income, net
—
—
—
(1)
—
(1)
Restaurant profit
$ 349
$ 73
$ —
$ —
$ —
$ 422
Company sales
2,059
545
9
—
—
2,613
Restaurant margin
16.9 %
13.3 %
(11.5) %
N/A
N/A
16.1 %
Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:
Quarter Ended 6/30/2025
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
GAAP Operating Profit (Loss)
$ 292
$ 46
$ (1)
$ (33)
$ —
$ 304
Special Items, Operating Profit
—
—
—
—
—
—
Adjusted Operating Profit (Loss)
$ 292
$ 46
$ (1)
$ (33)
$ —
$ 304
Items Affecting Comparability
—
—
—
—
—
—
F/X impact
(1)
—
—
—
—
(1)
Core Operating Profit (Loss)
$ 291
$ 46
$ (1)
$ (33)
$ —
$ 303
Quarter Ended 6/30/2024
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
Company sales
$ 1,983
$ 530
$ 15
$ —
$ —
$ 2,528
Franchise fees and income
16
2
4
—
—
22
Revenues from transactions with franchisees(2)
12
1
16
67
—
96
Other revenues
3
7
144
16
(137)
33
Total revenues
$ 2,014
$ 540
$ 179
$ 83
$ (137)
$ 2,679
Company restaurant expenses
1,663
460
14
—
—
2,137
General and administrative expenses
60
27
10
36
—
133
Franchise expenses
8
1
—
—
—
9
Expenses for transactions with franchisees(2)
11
1
14
66
—
92
Other operating costs and expenses
2
6
142
16
(137)
29
Closures and impairment expenses, net
6
5
2
—
—
13
Total costs and expenses, net
1,750
500
182
118
(137)
2,413
Operating Profit (Loss)
$ 264
$ 40
$ (3)
$ (35)
$ —
$ 266
Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:
Quarter Ended 6/30/2024
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
GAAP Operating Profit (Loss)
$ 264
$ 40
$ (3)
$ (35)
$ —
$ 266
Less:
Franchise fees and income
16
2
4
—
—
22
Revenues from transactions with franchisees(2)
12
1
16
67
—
96
Other revenues
3
7
144
16
(137)
33
Add:
General and administrative expenses
60
27
10
36
—
133
Franchise expenses
8
1
—
—
—
9
Expenses for transactions with franchisees(2)
11
1
14
66
—
92
Other operating costs and expenses
2
6
142
16
(137)
29
Closures and impairment expenses, net
6
5
2
—
—
13
Restaurant profit
$ 320
$ 70
$ 1
$ —
$ —
$ 391
Company sales
1,983
530
15
—
—
2,528
Restaurant margin
16.2 %
13.2 %
5.9 %
N/A
N/A
15.5 %
Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:
Quarter Ended 6/30/2024
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
GAAP Operating Profit (Loss)
$ 264
$ 40
$ (3)
$ (35)
$ —
$ 266
Special Items, Operating Profit
—
—
—
—
—
—
Adjusted Operating Profit (Loss)
$ 264
$ 40
$ (3)
$ (35)
$ —
$ 266
Items Affecting Comparability
—
—
—
—
—
—
F/X impact
—
—
—
—
—
—
Core Operating Profit (Loss)
$ 264
$ 40
$ (3)
$ (35)
$ —
$ 266
Year to Date Ended 6/30/2025
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
Company sales
$ 4,267
$ 1,129
$ 18
$ —
$ —
$ 5,414
Franchise fees and income
40
4
7
—
—
51
Revenues from transactions with franchisees(2)
33
3
36
164
—
236
Other revenues
2
13
342
34
(324)
67
Total revenues
$ 4,342
$ 1,149
$ 403
$ 198
$ (324)
$ 5,768
Company restaurant expenses
3,481
972
20
—
(1)
4,472
General and administrative expenses
120
52
16
81
—
269
Franchise expenses
19
2
—
—
—
21
Expenses for transactions with franchisees(2)
29
3
33
162
—
227
Other operating costs and expenses
2
11
335
34
(323)
59
Closures and impairment expenses, net
13
3
2
—
—
18
Other income, net
—
—
—
(1)
—
(1)
Total costs and expenses, net
3,664
1,043
406
276
(324)
5,065
Operating Profit (Loss)
$ 678
$ 106
$ (3)
$ (78)
$ —
$ 703
Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:
Year to Date Ended 6/30/2025
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
GAAP Operating Profit (Loss)
$ 678
$ 106
$ (3)
$ (78)
$ —
$ 703
Less:
Franchise fees and income
40
4
7
—
—
51
Revenues from transactions with franchisees(2)
33
3
36
164
—
236
Other revenues
2
13
342
34
(324)
67
Add:
General and administrative expenses
120
52
16
81
—
269
Franchise expenses
19
2
—
—
—
21
Expenses for transactions with franchisees(2)
29
3
33
162
—
227
Other operating costs and expenses
2
11
335
34
(323)
59
Closures and impairment expenses, net
13
3
2
—
—
18
Other income, net
—
—
—
(1)
—
(1)
Restaurant profit (loss)
$ 786
$ 157
$ (2)
$ —
$ 1
$ 942
Company sales
4,267
1,129
18
—
—
5,414
Restaurant margin
18.4 %
13.9 %
(16.0) %
N/A
N/A
17.4 %
Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:
Year to Date Ended 6/30/2025
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
GAAP Operating Profit (Loss)
$ 678
$ 106
$ (3)
$ (78)
$ —
$ 703
Special Items, Operating Profit
—
—
—
—
—
—
Adjusted Operating Profit (Loss)
$ 678
$ 106
$ (3)
$ (78)
$ —
$ 703
Items Affecting Comparability
—
—
—
—
—
—
F/X impact
4
1
—
—
—
5
Core Operating Profit (Loss)
$ 682
$ 107
$ (3)
$ (78)
$ —
$ 708
Year to Date Ended 6/30/2024
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
Company sales
$ 4,176
$ 1,117
$ 29
$ —
$ —
$ 5,322
Franchise fees and income
34
4
9
—
—
47
Revenues from transactions with franchisees(2)
26
2
36
139
—
203
Other revenues
8
12
308
31
(294)
65
Total revenues
$ 4,244
$ 1,135
$ 382
$ 170
$ (294)
$ 5,637
Company restaurant expenses
3,434
974
31
—
(1)
4,438
General and administrative expenses
121
54
20
78
—
273
Franchise expenses
17
2
—
—
—
19
Expenses for transactions with franchisees(2)
23
2
33
138
—
196
Other operating costs and expenses
6
11
304
30
(293)
58
Closures and impairment expenses, net
7
5
2
—
—
14
Other income, net
—
—
—
(1)
—
(1)
Total costs and expenses, net
3,608
1,048
390
245
(294)
4,997
Operating Profit (Loss)
$ 636
$ 87
$ (8)
$ (75)
$ —
$ 640
Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:
Year to Date Ended 6/30/2024
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
GAAP Operating Profit (Loss)
$ 636
$ 87
$ (8)
$ (75)
$ —
$ 640
Less:
Franchise fees and income
34
4
9
—
—
47
Revenues from transactions with franchisees(2)
26
2
36
139
—
203
Other revenues
8
12
308
31
(294)
65
Add:
General and administrative expenses
121
54
20
78
—
273
Franchise expenses
17
2
—
—
—
19
Expenses for transactions with franchisees(2)
23
2
33
138
—
196
Other operating costs and expenses
6
11
304
30
(293)
58
Closures and impairment expenses, net
7
5
2
—
—
14
Other income, net
—
—
—
(1)
—
(1)
Restaurant profit (loss)
$ 742
$ 143
$ (2)
$ —
$ 1
$ 884
Company sales
4,176
1,117
29
—
—
5,322
Restaurant margin
17.8 %
12.8 %
(11.1) %
N/A
N/A
16.6 %
Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:
Year to Date Ended 6/30/2024
KFC
Pizza Hut
All Other
Segments
Corporate
and
Unallocated(1)
Elimination
Total
GAAP Operating Profit (Loss)
$ 636
$ 87
$ (8)
$ (75)
$ —
$ 640
Special Items, Operating Profit
—
—
—
—
—
—
Adjusted Operating Profit (Loss)
$ 636
$ 87
$ (8)
$ (75)
$ —
$ 640
Items Affecting Comparability
—
—
—
—
—
—
F/X impact
—
—
—
—
—
—
Core Operating Profit (Loss)
$ 636
$ 87
$ (8)
$ (75)
$ —
$ 640
The above tables reconcile segment information, which is based on management responsibility, with our Condensed Consolidated Statements of Income.
(1) Amounts have not been allocated to any segment for purpose of making operating decision or assessing financial performance as the transactions are deemed corporate revenues
and expenses in nature.
(2) Primarily includes revenues and associated expenses of transactions with franchisees derived from the Company’s central procurement model whereby the Company centrally purchases
substantially all food and paper products from suppliers and then sells and delivers to KFC and Pizza Hut restaurants, including franchisees.