Yum China reported QQ1 2025 revenue of $2.981 billion, up 0.78% year-over-year and 14.87% quarter-over-quarter. Despite a modest YoY top-line, the company delivered meaningful margin expansion and strong cash generation, underscored by gross margin of 19.19% and operating margin of 13.38%. Net income reached $292 million with EPS of $0.78 (diluted $0.77). Operating cash flow was $452 million, and free cash flow was $315 million, supporting an active capital allocation program that included $173 million in share repurchases and a $90 million dividend. The balance sheet remains solid, with total assets of about $11.0 billion and net debt of approximately $1.55 billion (net debt/EBITDA ≈ 3.0x). Working capital dynamics are favorable, as evidenced by a negative cash conversion cycle of about -4.9 days, driven by tight receivables, modest inventory, and a sizable payables balance. Management commentary is not available in the provided data; however, the quarter exhibits resilience in a China consumer environment with continued emphasis on efficiency, digital delivery, and store-level optimization. Investors should monitor same-store sales momentum, store openings pipeline, evolving mix between core brands (KFC and Pizza Hut), and continued capital allocation discipline.