Yum China delivered a solid QQ3 2024 performance, driven by continued strength in core brands and improving operating efficiency. Revenue reached USD 3.071 billion, up 5.4% year over year and 14.6% quarter over quarter, with gross profit of USD 550 million and an EBITDA of USD 556 million. The company posted an operating income of USD 371 million and net income of USD 297 million, translating to EPS of USD 0.77. On a margin basis, the quarter reflects an operating margin of roughly 12.1% and a net margin near 9.7%, underscoring a stable profitability profile despite a highly competitive domestic market and ongoing investment in store network and digital capabilities.
Cash generation remains a key strength, with operating cash flow of USD 409 million and free cash flow of USD 244 million. Capital allocation was constructive, including USD 195 million in share repurchases and USD 61 million in dividends, complemented by continued capex of approximately USD 165 million. The balance sheet shows a robust asset base and ample liquidity, supported by a substantial cash and cash equivalents position and manageable leverage. Although the year‑to‑date results reflect resilience, Yum China faces the ongoing China consumer environment, competition from both international and local players, and macro headwinds that require disciplined execution and ongoing optimization of the store network and menu mix. Overall, the QQ3 results reinforce Yum China’s ability to generate steady cash flows, invest in growth, and return capital to shareholders while preserving balance sheet strength.