The Zhitong Finance App learned that Yum China (09987) rose more than 4% in the intraday period. As of press release, it had risen 3.7% to HK$386.6, with a turnover of HK$186 million.
According to the news, recently, Yum China announced financial results for the second quarter of 2026. According to CITIC Construction Investment, the company achieved total revenue of US$3.138 billion in 26Q2, +13% YoY, and realized net profit of US$244 million, +14% YoY. The 26Q2 same-store and system sales growth rate increased month-on-month, and the steady increase in profit margins stood out. 26Q2 added a net 560 new stores, a record high for the second quarter. The bank believes that the company's new business format is developing rapidly, and most have achieved better-than-expected performance, and some brands have raised their store opening expectations; it is expected that after the company completes the acquisition of Pizza Hut's ownership in China, profit margins will increase and strategic flexibility will increase.
According to Guoxin Securities, Yum China's 26Q2 net increase of 560 companies reached a record high for the same period. At the end of the period, there were 19,297 general stores, and the share of franchises rose to 18%. Operational efficiency improvements and rent optimization hedge against upward pressure on costs, and overall restaurant profit margins remain resilient. Furthermore, it is expected that the acquisition of the Pizza Hut brand in mainland China will be completed in August. After completion, the brand license fee will be reduced by 3%, improving the economic model of Pizza Hut stores.