Yum China reported solid top-line growth in Q3 2025 with revenue of USD 3.206 billion, up 4.4% year over year and 15.0% quarter over quarter, underscoring continued demand resilience in China’s quick-service restaurant (QSR) landscape. Gross profit rose to USD 582 million, producing a gross margin of 18.15%, while operating income reached USD 439 million for an operating margin of 13.69%. EBITDA stood at USD 527 million (EBITDA margin 16.44%), reflecting ongoing efficiency in store operations and favorable mix shifts. Net income was USD 282 million, delivering a net margin of 8.80% and an earnings per share (EPS) of USD 0.77 (diluted USD 0.76) on a weighted average of 368 million shares.
From a financial health perspective, Yum China exhibits a disciplined balance sheet and robust cash generation. The company reported current and quick ratios of 1.32x and 1.15x respectively, with a cash ratio of 0.28x, and a debt-to-equity of approximately 0.32x. Cash flow per share (CFO per share) was USD 1.322 and free cash flow per share (FCF per share) USD 0.972, pointing to meaningful cash generation against capex needs. The firm maintains a conservative capitalization profile, with a debt ratio near 0.17 and total debt to capitalization around 0.24.
Management commentary on the QQ3 release is not captured in the provided transcript dataset; as such, qualitative insights from the earnings call are not quoted here. Nevertheless, the quarterly results imply continued execution in core brands (KFC and Pizza Hut) and improving operational efficiency. Investors should monitor same-store sales trajectories, menu mix and pricing leverage, supply chain costs, and digital/channel growth to assess the durability of margins and cash flow in a volatile macro backdrop.