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NYSE: YUMC and HKEX: 9987 July 30, 2026 Second Quarter 2026 Results
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2 Cautionary Statement This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to our projected capital returns. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “project,” “likely,” “will,” “continue,” “should,” “forecast,” “outlook,” “commit” or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the future strategies, growth, business plans, investments, store openings, net new stores, franchise mix of net new stores, capital expenditures, capital returns, dividend and share repurchase plans, CAGR for system sales, operating profit and EPS, earnings, performance and returns, anticipated effects of population and macroeconomic trends, execution of the Company’s RGM 3.0 strategy, the anticipated effects of our innovation, digital and delivery capabilities and investments on growth and beliefs regarding the long-term drivers of Yum China’s business. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this presentation are only made as of the date of this presentation, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: whether we are able to achieve development goals at the times and in the amounts currently anticipated, if at all, the success of our marketing campaigns and product innovation, our ability to maintain food safety and quality control systems, changes in public health conditions, our ability to control costs and expenses, including tax costs, as well as changes in political, economic, trade relations, regulatory conditions in China and the U.S., and those set forth under the caption “Risk Factors” in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Our plan of capital returns to shareholders is based on current expectations, which may change based on market conditions, capital needs or otherwise. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results. This presentation includes certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures are included in this presentation where indicated. You are urged to consider carefully the comparable GAAP measures and reconciliations.
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3 Strong Q2 Results: Ninth Consecutive Quarter of System Sales Growth, OP Growth and OP Margin Expansion Strong Sales System Sales Growth1 Strong Profit Growth Resilient Margins +6% OP Margin 11.1% Restaurant Margin 16.1% +14% Operating Profit +7% Core Operating Profit2 Q2 YoY 14th consecutive quarter of Same-store transaction growth Q2 YoY Excl. F/X & mark-to- market impact +20 bps Flat Diluted EPS Grew to $0.70 +21% +10% YoY OP margin expansion despite significant cost pressure from a higher delivery mix 1 Excludes the impact of foreign exchange (“F/X”). 2 Core Operating Profit is defined as Operating Profit adjusted for Special Items, further excluding Items Affecting Comparabil ity and the impact of F/X. The Company uses Core Operating Profit for the purposes of evaluating the performance of its core operations. Revenue Growth +13% Same-Store Sales Growth1 +1% Q2 YoY Record Q2 OP $348mn Q2 YoY
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4 >5,000 >10,000 19,297 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 26‘1H Strong Momentum in Footprint Growth; Record Net New Openings in 1H 2026 25 years 8 years 4 years Total Stores >15,000 Targets • To reach 20,000+ stores by 2026 • To reach 30,000+ stores by 2030 Net new stores 560 in Q2 1,196 in 1H (~63% of full year target)
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5 Accelerated Expansion Across Equity and Franchise Stores Through Diverse Store Formats 1 Refers to stores opened in 1H 2026. 2 Refers to stores opened in 1H 2025. 3 Refers to Average Pre-tax Cash Payback Period assuming yearly cashflow is same as year 1, after deduction of 3% license fee and before G&A expenses and income tax; based on stores opened April 2024 to March 2025. Total Stores Net New Stores in 1H 13,789 17% Franchise 792 Reduced Average Capex Healthy New Store Payback3 ~2-3 years 4,549 11% Franchise 381 ~2-3 years Penetrating More Cities 2,700+ Cities with KFC 330+ New cities entered in last 12 months 1,200+ Cities with Pizza Hut 330+ New cities entered in last 12 months 41% Franchise 46% Franchise ~1.2 mn1 RMB / store (From ~1.4 mn)2 ~0.9 mn1 RMB / store (From ~1.1-1.2 mn)2
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6 Balanced Delivery Strategy: Driving Sales Growth While Mitigating Margin Impact 1 Delivery sales at Company-owned stores. ~45% ~54% ~26% ~21% ~29% ~25% 25'Q2 26'Q2 Sales mix by channels % of Company sales Dine-in Takeaway Delivery ~43% ~52% ~9% ~8% ~48% ~42% 25'Q2 26'Q2 +26% YoY in Q2 +26% YoY in Q2 Delivery Sales +26%1 YoY in Q2 • Delivery mix increased by 9ppts YoY to 54% in Q2 • Driving top-line growth while margin impact was mitigated through our balanced approach • Relatively stable delivery mix vs Q1 despite more normalized delivery platform subsidies Restaurant Margin 16.9% 17.1% 13.3% 12.9%
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7 KFC Delivered Strong Sales Growth and Expanded Margins Q2 2026 13,789 Total Stores +14% OP Growth YoY $332mn Operating Profit +7% System Sales Growth YoY 335 Net New Stores 14.2% OP Margin +20 bps YoY 17.1% Restaurant Margin +20 bps YoY 5th consecutive quarter of growth, driven by 4% same- store transaction growth YoY Photo: Wenzhou Future City store (温州未来城店) +7% Core OP Growth YoY +1% Same-Store Sales Growth YoY
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8 Platform Innovation Drives Strong Sales and Repeat Purchases “Zinger” Platform More Fragrant, Spicier “Wings” Platform New Crackling Salted Egg Yolk “Whole Chicken” Platform Aromatic Paper -Wrapped Roasted
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9 • Delivered mid-single-digit sales uplift to parent KFC stores • Module showing solid margin improvement • Enriched non-coffee offerings including tea and food options Total Locations 3,300+ by the end of Q2 KCOFFEE Cafe Targets RMB ~2bn Sales in 2026 and 5,000 Locations by 2027 Passion Fruit & Pineapple Sparkling Americano Lemon Rooibos Sparkling Tea Strawberry White Choco Caramel Egg Tart Iced Americano With Milk Cap Photo: KCOFFEE Cafe University of Nottingham Ningbo China Campus Store (宁波诺丁汉大学同学店)
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10 KPRO Year-End Target Raised to 800 Locations, Up from 600 Energy PRO Sandwich High - Protein Yogurt Smoothie Energy Bowl Super Food Smoothie Photo: Beijing Songjiazhuang store (北京宋家庄) Total Locations 450+ by the end of Q2 • Delivered ~20% sales uplift to parent KFC stores • Module showing solid margin improvement • Expanding into Tier 1, 2 and select lower-tier cities • Target sales to quadrupled YoY in 2026 and reach RMB 1bn+ in 2027
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11 Pizza Hut Same-Store Sales Grew 1% YoY in Q2; OP Margin Expanded by 60 bps YoY in First Half 2026 Q2 2026 4,549 Total Stores +11% OP Growth YoY +5% Core OP Growth YoY $51 mn Operating Profit +6% System Sales Growth YoY 174 Net New Stores 8.3% OP Margin Flat YoY 12.9% Restaurant Margin -40 bps YoY Photo: Pizza Hut Shanghai Xinlin Life Station Shopping Mall ( 上海新邻生活城) +60bps YoY in 1H’26 +1% Same-Store Sales Growth YoY 13% same-store transaction growth YoY (14th consecutive quarter of growth) +10bps YoY in 1H’26
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12 Newly-Launched Multi-Grain Crust Became Our Best-Seller in June
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13 Strengthening the Core While Unlocking New Growth Drivers New Multi-Grain Crust Pizzas to Capture Lighter Meal Occasions Enriched Protein Platforms to Enhance Dine-In Experience New Pizza Hut Burgers at Great Prices Pizza Hut Burger Category Targets RMB 1bn+ Sales in 2026
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14 Pizza Hut Burger Bar Expanded to 200+ Locations, Driving Double-Digit Incremental Sales to Parent Stores Patties Straight Off the Griddle Photo: Pizza Hut Burger in Shanghai Xinlin Life Station Shopping Mall (上海新邻生活城) and Shenzhen Xinwen Road (深圳新闻路) • Tight menu centered on made-to-order burgers • Great taste, amazing value for money and quick-service convenience • Utilize space in existing stores with light investment • Target 500-600 locations by the end of 2026 Buns Baked Freshly In-Store Daily
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15 Acquisition of the Pizza Hut Brand in Mainland China Expected to Close in August 2026 • In the near term, expect the savings in license fee to enhance store economics and lower the threshold for new store openings. More potential new stores are expected to meet our payback requirements of 2-3 years. • In the longer term, brand ownership will give us greater strategic flexibility to drive innovation across the menu, store formats, new modules, and operations. • Expected to be immediately accretive to diluted EPS in 2026 following closing, and mid-single-digit accretive to diluted EPS in 2027 and 2028. • Target to accelerate net new openings to 800+ per year in 2027 and 2028, up from our original target of over 600. • Plan to borrow an approximately $1.2 bn equivalent offshore bridge loan to finance the transaction. Photo: Pizza Hut Shenzhen Sanya Bay One (深圳三亚湾壹号)
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16 166 473 442 102 278 668 833 1,490 1,489 718 2017 2018 2019 2020 2021 2022 2023 2024 2025 26'1H Dividends Share repurchase On Track to Return $1.5Bn to Shareholders in 2026, Around 10% of Market Capitalization1 1 Market capitalization as of July 29, 2026. 2 Includes dividends and share repurchases. Share repurchase amount excludes 1% excise tax and commissions. 3 Based on current expectations, which may change based on market conditions, capital needs or otherwise. Subject to Board appr oval on dividends and share repurchases, as well as shareholders’ approval on share repurchases. 4 Refers to operating cash flow less capital spending and dividends paid to non -controlling interests, which is associated with o ur consolidated JVs including KFC JVs . 5 Refers to $485 mn cash and cash equivalents, $901 mn short-term investments and $688 mn long-term bank deposits and notes, net of $ 66 mn in short-term borrowings. ~$6.7 bn since spin-off Capital Returns to Shareholders in 2017-20261H2 Target Capital Returns in 2024-263 In $mn $1.5 bn Each year 2027 & Beyond Outlook Target to Return ~100% of Free Cash Flow to ParentCo4 Estimated Average Annual Return of ~$900-1,000 mn+ in 2027-2028 Increase in Quarterly Cash Dividends +21% To $0.29 in Q1 2026 Net Cash5 (By end of Jun 2026) $2.0 bn
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17 • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures Appendix
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18 Note: The comparison of revenue and operating profit include the impact of foreign exchange. Second Quarter Grew YoY and vs 2019 Second Quarter 2019 2025 2026 2026 vs 2025 2026 vs 2019 No. of Stores 8,751 16,978 19,297 +14% +121% Total Revenues ($ mn) 2,124 2,787 3,138 +13% +48% Member Sales % 52% 64% 55% (9) ppt +3 ppt Operating Profit ($ mn) 204 304 348 +14% +70% OP Margin (% of revenue) 9.6% 10.9% 11.1% +0.2 ppt +1.5 ppt
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19 Operating Profit/Core OP YoY 2.79 3.14 25'Q2 26'Q2 Sales and Profit Grew YoY in Second Quarter Revenue/Sales YoY Revenue growth (reported) +13% Revenue growth (ex F/X) +6% System sales growth +6% Key factors for Revenue year-over-year change + Net new unit contribution + Same-store sales growth + Foreign exchange impact Total Revenue ($bn) Key factors for Core OP year-over-year change + Increase in total revenue + Efficiency improvement from streamlined operations + Favorable commodity prices − Higher delivery cost due to increased delivery mix − Value-for-money offerings OP growth (reported) +14% OP growth (ex F/X) +7% Core OP growth +7% $mn 25’Q2 26’Q2 Operating Profit 304 348 Special items - - Items affecting comparability - - Foreign currency translation - (20) Core operating profit 304 328
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20 26’Q2 YoY Sales Growth Channel Mix Digital orders System Sales YoY Same-store sales YoY Same-store transactions YoY Average ticket YoY Delivery Total off- premise Sales % +7% +1% +4% (3)% 54% 75% 94% +6% +1% +13% (11)% 52% 60% 96% 26’Q2 RMB 36 25’Q2 RMB 38 26’Q2 RMB 68 25’Q2 RMB 76 Mainly due to incremental smaller orders In line with strategy to target mass market Second Quarter Key Performance Highlights – KFC & Pizza Hut
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21 Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures
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22 RGM 3.0 for the Future M G R • Physical Store + Virtual Space • Unleash the Power of Agentic AI • Integrated & Agile Supply Chain • Go Deep with Core Brands • Equity & Franchise Hybrid Model as an Accelerator • Front - End Segmentation & Back - End Consolidation
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23 System Sales Mix OP2 Mix OP Margin3 2025 Revenue1 Mix 2028E 9% 3-4% 8% 4-5% Mid-teens High-single ~10% High-single Unit Mix 13% Twenties Incremental Franchising Impact (2026-2028) Franchising as an Incremental Growth Lever to Accelerate Expansion Note: Figures on this page represent KFC and Pizza Hut and their contribution to YUMC total, except for OP margin 1Revenue from franchise business includes Franchise fees and income and Revenues from transaction with franchisees included in KFC and Pizza Hut reportable segments, revenue for delivery services provided to franchisees and included in All Other Segments, and revenue from sale of food and paper products to franchisees and included in Corporate and Unallocated 2The Operating Profit ("OP") of franchise business is defined as revenue from franchise business, less Franchise expenses and Expenses for transactions with franchisees in respective segments, and G&A attributable to franchisee business 3OP Margin of franchise business is defined as OP of franchise business divided by Revenue from franchise business Franchise Business 40-50% （up from 20-30%） 40-50% 3,000+ Net New Franchise Stores 1/3 - 2/3 of Average Sales of Existing Standard Stores ~50% Franchise Store Sales Recognized as YUMC Revenue Franchise Mix of Net New Stores
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24 2026-2028 Growth Targets on 2025 Base: Free Cash Flow Per Share CAGR EPS3 CAGR Operating Profit2 CAGR Same-Store Sales Index YoY 100-102 Double-digit%Double-digit% High-single- digit% System Sales1 CAGR Mid- to High- single-digit% 1System sales excluding F/X 2Operating profit excluding special items and F/X 3Diluted EPS excluding special items and F/X Our Pathway to Value Creation: 2026-2028 Outlook
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25 Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures
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26 ESG Ratings and Awards Industry No.1 on S&P Global CSA for the 6th Year “Top Employer” in China for the 8th Year 8 consecutive years of “Top Employer” recognition from the Top Employers Institute #1 in the restaurant industry for the 5th consecutive year Industry No.1 in S&P Global 2025 Corporate Sustainability Assessment (CSA) Dow Jones Best-in-Class World Index* member for the 6th Year Included in the S&P Global Sustainability Yearbook 2026 Support UN SDG Industry Leader 5th consecutive year One of the Most Sustainable Companies by TIME TIME World's Best Companies of 2025 TIME Top 500 World's Most Sustainable Companies List (2024- 2025) * Formerly named DJSI World Index
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27 Key ESG Initiatives Environment People Community Food Climate Action China's first restaurant company with approved near- term SBTs and committed to achieving net-zero by 2050 “People First” Philosophy Provide comprehensive support to ensure the well- being of employees – e.g., medical insurance coverage for RGMs, eligible employees, and their families Rural Revitalization One Yuan Donation - 18 years of commitment, RMB280mn+ raised benefitted 1mn+ children* Food Safety as Top Priority End-to-end food safety and quality management system with tech-enabled controls across the value chain * As of June 30, 2026 Circular Economy Strive to create “zero-waste restaurants” by adhering to the 4R principle (Reduce, Reuse, Replace, Recycle) Diversity, Equity & Inclusion Foster a fair and inclusive workplace; ~80 “Angel Restaurants” nationwide* Community Support Food banks in 1,300+ locations across 190+ cities* Little Migratory Birds Fund benefitted ~6.5mn children* Healthy & Balanced Meals Offer healthier, more balanced choices and diverse menu options to support a healthy lifestyle
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28 Appendix • Supplemental Financial Information • 2025 Investor Day Highlights • Key Sustainability Updates • Reconciliation of Reported GAAP Results to Non-GAAP Measures
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29 Reconciliation of Operating Profit to Core Operating Profit* * Current period amounts are derived by translating results at average exchange rates of the prior year period. (in $mn) Yum China Quarter ended % Change Year to Date Ended % Change 6/30/2026 6/30/2025 B/(W) 6/30/2026 6/30/2025 B/(W) Operating Profit $ 348 $ 304 14 $ 795 $ 703 13 Special Items, Operating Profit — — — — Adjusted Operating Profit $ 348 $ 304 14 $ 795 $ 703 13 Items Affecting Comparability — — — — F/X impact (20) — (44) — Core Operating Profit $ 328 $ 304 7 $ 751 $ 703 7 Total revenues 3,138 2,787 13 6,409 5,768 11 F/X impact (183) — (342) — Total revenues, excluding the impact of F/X $ 2,955 $ 2,787 6 $ 6,067 $ 5,768 5 Core OP margin 11.1% 10.9% 0.2 ppts 12.4% 12.2% 0.2 ppts.
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30 Reconciliation of Operating Profit to Core Operating Profit (in $mn) Pizza Hut Quarter ended Year to Date Ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 GAAP Operating Profit $ 51 $ 46 $ 122 $ 106 Special Items, Operating Profit — — — — Adjusted Operating Profit $ 51 $ 46 $ 122 $ 106 Items Affecting Comparability — — — — F/X impact (3) — (7) — Core Operating Profit $ 48 $ 46 $ 115 $ 106 KFC Quarter ended Year to Date Ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 GAAP Operating Profit $ 332 $ 292 $ 749 $ 678 Special Items, Operating Profit — — — — Adjusted Operating Profit $ 332 $ 292 $ 749 $ 678 Items Affecting Comparability — — — — F/X impact (19) — (40) — Core Operating Profit $ 313 $ 292 $ 709 $ 678
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31 Reconciliation of Operating Profit to Restaurant Profit (in $mn) Yum China Quarter ended Year to Date Ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 GAAP Operating Profit $ 348 $ 304 $ 795 $ 703 Less: Franchise fees and income 29 24 59 51 Revenues from transactions with franchisees 155 115 311 236 Other revenues 44 35 82 67 Add: General and administrative expenses 139 131 276 269 Franchise expenses 12 10 24 21 Expenses for transactions with franchisees 148 110 298 227 Other operating costs and expenses 38 30 69 59 Closures and impairment expenses, net 12 12 12 18 Other income, net — (1) — (1) Restaurant profit $ 469 $ 422 $ 1,022 $ 942 Company sales 2,910 2,613 5,957 5,414 Restaurant margin 16.1% 16.1% 17.2% 17.4%
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32 Reconciliation of Operating Profit to Restaurant Profit (in $mn) KFC Quarter ended Year to Date Ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 GAAP Operating Profit $ 332 $ 292 $ 749 $ 678 Less: Franchise fees and income 24 19 47 40 Revenues from transactions with franchisees 19 17 38 33 Other revenues 1 1 2 2 Add: General and administrative expenses 67 61 128 120 Franchise expenses 10 9 21 19 Expenses for transactions with franchisees 15 15 30 29 Other operating costs and expenses 1 1 1 2 Closures and impairment expenses, net 10 8 10 13 Restaurant profit $ 391 $ 349 $ 852 $ 786 Company sales 2,294 2,059 4,704 4,267 Restaurant margin 17.1% 16.9% 18.1% 18.4%
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33 Reconciliation of Operating Profit to Restaurant Profit (in $mn) Pizza Hut Quarter ended Year to Date Ended 6/30/2026 6/30/2025 6/30/2026 6/30/2025 GAAP Operating Profit $ 51 $ 46 $ 122 $ 106 Less: Franchise fees and income 3 2 6 4 Revenues from transactions with franchisees 3 1 5 3 Other revenues 3 6 6 13 Add: General and administrative expenses 28 26 54 52 Franchise expenses 2 1 3 2 Expenses for transactions with franchisees 2 1 4 3 Other operating costs and expenses 3 5 5 11 Closures and impairment expenses, net 1 3 1 3 Restaurant profit $ 78 $ 73 $ 172 $ 157 Company sales 604 545 1,231 1,129 Restaurant margin 12.9% 13.3% 14.0% 13.9%
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34 About Yum China 1 In terms of system sales. Largest restaurant company in China1 6 restaurant brands Fortune 500 company Vision: To be the world’s most innovative pioneer in the restaurant industry 19,000+ restaurants 2,700+ cities in China Company website: http://ir.yumchina.com Investor Relations Contact: IR@YumChina.com Tel: +86 21 2407 7556 Media Contact: Media@YumChina.com Tel: +86 21 2407 3824