--- title: "[Zhenzhuo HK Stock Market Trend] Yum China (09987.HK) Q1 revenue up 10% to $3.3 billion, declares quarterly dividend of $0.29 per share, a 20% year-on-year increase" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40309025.md" description: "$YUM CHINA(09987.HK) announced its first quarter results for the period ended March 31, 2026. The company's RGM3.0 strategy, focusing on "Resilience, Growth, Moat," demonstrated effectiveness, with total revenue for the first quarter increasing 10% year-over-year to $3.3 billion, exceeding market expectations. Quarterly operating profit grew 12% year-over-year to $447 million, setting a new record for a first quarter. Same-store transaction volume has grown for the 13th consecutive quarter. During the period, the company's store opening pace reached a historical high for a single quarter, with a net addition of 636 stores..." datetime: "2026-04-30T02:36:24.000Z" locales: - [en](https://longbridge.com/en/topics/40309025.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40309025.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40309025.md) author: "[真灼财经](https://longbridge.com/en/profiles/1067948.md)" --- # [Zhenzhuo HK Stock Market Trend] Yum China (09987.HK) Q1 revenue up 10% to $3.3 billion, declares quarterly dividend of $0.29 per share, a 20% year-on-year increase $YUM CHINA(09987.HK) announced its first quarter results for the period ended March 31, 2026. The company's RGM3.0 strategy, focusing on "Resilience, Growth, Moat," demonstrated effectiveness, with total revenue increasing 10% year-over-year to US$3.3 billion in Q1, exceeding market expectations. Operating profit for the quarter grew 12% year-over-year to US$447 million, setting a new Q1 record. Same-store transaction volume grew for the 13th consecutive quarter. During the period, the company's store opening pace reached a new quarterly record, with a net addition of 636 stores, bringing the total store count to 18,737. Operating margin for the quarter improved by 30 basis points year-over-year to 13.7%, marking the 8th consecutive quarter of improvement. Diluted EPS increased 13% year-over-year to US$0.87. Excluding the impact of foreign exchange and mark-to-market equity investments, the growth was 11%. In Q1, the company's membership base continued to expand, with the total number of active members for KFC and Pizza Hut exceeding 270 million, up 9% year-over-year. **CEO Joey Wat: Record Net New Store Additions in a Single Quarter** Ms. Joey Wat, CEO of Yum China, said, "We delivered solid first quarter results in a dynamic market environment and remain optimistic about the initial signs of improving consumer sentiment. In the first quarter, to capture significant market opportunities, we accelerated store expansion, achieving a record high for net new store additions in a single quarter. At the same time, thanks to the relentless efforts of our team, we achieved growth in system sales, operating profit, and operating margin for the eighth consecutive quarter." Ms. Wat continued, "It is worth noting that same-store transaction volume for both Yum China and Pizza Hut has grown for the thirteenth consecutive quarter. KFC's same-store sales grew for the fourth consecutive quarter, and we continued to expand into new consumption scenarios through the rapid expansion of K Coffee, the KPRO light meal side-by-side model, and curbside pickup services. Pizza Hut achieved 18% growth in operating profit on top of last year's 27% growth, further improving restaurant margin and operating margin. Meanwhile, leveraging the WOW model, Pizza Hut entered over 100 new towns in the first quarter." Ms. Wat concluded, "Looking ahead, we will continue to drive business growth through front-end segmentation and back-end aggregation. With a solid business foundation, a strategy driven by both innovation and efficiency, and a macro environment where competition among delivery platforms is gradually returning to rationality, we are confident in achieving our full-year performance goals and creating long-term sustainable value for shareholders." **KFC Same-Store Sales Grow for Four Consecutive Quarters** KFC's growth remained resilient in Q1. Same-store sales increased 1% year-over-year, marking the 4th consecutive quarter of growth. Same-store transaction volume also grew 1%, driving system sales up 5% year-over-year. Operating profit for the quarter increased 8% year-over-year to US$417 million. The net addition of 457 stores during the quarter was 55% higher than the net store additions in the same period last year. As of the end of Q1, KFC's total store count reached 13,454. **Pizza Hut Operating Profit Up 18%, WOW Store Count Doubles Within a Year** Pizza Hut's scale and profitability continued to grow. In Q1, operating profit increased 18% year-over-year on a high base to US$71 million. Operating margin expanded by 110 basis points year-over-year, marking the eighth consecutive quarter of improvement. System sales for the quarter grew 4% year-over-year. Same-store transaction volume increased 5% year-over-year. Benefiting from operational optimization and automation, as well as favorable raw material prices, restaurant margin improved by 60 basis points year-over-year to 15%. The net addition of 207 stores during the quarter was close to half of the net store additions in 2025. As of the end of Q1, Pizza Hut's total store count reached 4,375. **Declares Quarterly Dividend of US$0.29 Per Share, 4th Consecutive Year of Quarterly Dividend Increase** The company is steadily progressing towards its goal of returning US$1.5 billion to shareholders annually from 2024 to 2026. This target represents approximately 9% of the company's market capitalization as of April 28, 2026. In Q1 2026, the company returned US$316 million to shareholders through US$214 million in share repurchases and US$102 million in cash dividends. The Board declared a cash dividend of US$0.29 per share on Yum China common stock (US$0.24 per share in Q1 2025), representing a 20.8% year-over-year increase, marking the fourth consecutive year of quarterly dividend increases. The dividend will be paid on June 17, 2026, to shareholders of record as of the close of business on May 27, 2026. Starting in 2027, the company plans to return approximately 100% of its annual free cash flow (after deducting dividends paid to non-controlling interests of subsidiaries) to shareholders. Looking ahead, the company expects to net add over 1,900 stores in 2026, reaching the milestone of 20,000 stores. Among these, Speed Alliance stores are expected to account for 40% to 50% of the net new stores for KFC and Pizza Hut. Full-year capital expenditure is projected to be between US$600 million and US$700 million. ### Related Stocks - [09987.HK](https://longbridge.com/en/quote/09987.HK.md) - [YUM.US](https://longbridge.com/en/quote/YUM.US.md) - [YUMC.US](https://longbridge.com/en/quote/YUMC.US.md)