Yum China targets over 20,000 stores in 2026

Second-quarter revenue increased 13% to $3.1b.

Yum China plans to expand its store network to more than 20,000 outlets in 2026 by opening over 1,900 net new stores.

The company expects 40% to 50% of new KFC and Pizza Hut stores to be franchised, with capital expenditures of approximately $600m to $700m. It also plans to return $1.5b to shareholders.

In the second quarter, revenue increased 13% year-on-year to $3.1b, or 6% excluding foreign exchange effects.

Yum China opened a record 560 net new stores during the quarter, up 67% from a year earlier, with franchisees accounting for 41% of new openings.

As of 30 June 2026, the company operated 19,297 stores, 18% of which were franchised.

CEO Joey Wat said the company recorded its ninth straight quarter of growth in system sales, operating profit and operating profit margin.

Same-store sales rose 1%, supported by a 14th consecutive quarter of same-store transaction growth.

KFC posted 7% system sales growth and higher restaurant margins, whilst Pizza Hut returned to positive same-store sales growth and nearly doubled net new store openings from a year ago.

Wat said Yum China is driving growth through menu innovation, expanded KCOFFEE cafés, KPRO outlets, car-side pickup services, Pizza Hut Burger Bar, and its KFC Small Town and Pizza Hut WOW formats.

“Our menu innovations and breakthrough side-by-side modules are helping us broaden into new occasions and new customer segments,” he said.

The company also expects to acquire ownership of the Pizza Hut brand in mainland China after operating it under licence for 36 years.

“More potential new stores are expected to meet our payback requirements of two to three years,” Wat said. “Over the longer term, brand ownership will give us greater strategic flexibility to capture new opportunities and innovate more nimbly across our menu, store formats, new business modules and operations.“