Yum China, Yum Brands Post Mixed Q1 2025 Results

Yum China Holdings (YUMC) reported first-quarter 2025 earnings and revenue below analysts' expectations, with EPS at $0.77 (vs. $0.78 expected) and revenue of $2.98 billion (vs. $3.11 billion expected), marking its fourth straight quarter missing revenue estimates. The company attributed the margin pressure to rational consumer spending and extensive promotions, though operating profit rose year over year and same-store sales matched prior-year levels. Yum China's shares fell following the results, but it plans to open 1,600 to 1,800 new stores and return $3 billion to shareholders over the next two years. Yum! Brands (YUM), by contrast, beat adjusted EPS expectations ($1.30 vs. $1.29 expected) and reported a 12% rise in revenue, fueled by strong KFC and Taco Bell performance, while Pizza Hut lagged. Digital sales at Yum! Brands neared $9 billion, and its shares have outperformed the broader market in 2025. Both Yum China and Yum! Brands face continued growth uncertainty amid changing consumer trends.