YUM CHINA HOLDINGS INC (NYSE:YUMC) Reports Mixed Q2 2025 Results with Revenue Miss but EPS in Line, Shares Rise 3.46% Pre-Market

YUM CHINA HOLDINGS INC (NYSE:YUMC) reported mixed second-quarter results for 2025, with revenue falling short of expectations while earnings per share (EPS) met analyst forecasts. The market reaction has been cautiously optimistic, with pre-market trading showing a gain of approximately 3.46%, suggesting investors are weighing the company’s operational improvements against its top-line miss.

Key Financial Results vs. Estimates

• Revenue: Reported at $2.79 billion, up 4% year-over-year but below the consensus estimate of $2.85 billion.
• EPS: Non-GAAP earnings came in at $0.58 per share, aligning with the $0.5755 estimate. Excluding mark-to-market and foreign exchange impacts, adjusted EPS grew 15% year-over-year.

The revenue shortfall may reflect broader macroeconomic pressures or slower-than-expected same-store sales growth, despite the company noting a return to positive same-store sales after previous declines.

Operational Highlights from the Press Release

• Operating Profit: Increased by 14% year-over-year, with margins expanding by 100 basis points to a second-quarter record of 10.9%.
• Same-Store Sales Growth: Turned positive, supported by a 10th consecutive quarter of same-store transaction growth.
• Board Appointment: The company announced the addition of Mr. Zhe (David) Wei as a new board member, signaling potential strategic shifts or governance enhancements.

Market Reaction & Outlook

The pre-market uptick suggests investors are focusing on profitability improvements rather than the revenue miss. However, the stock’s performance over the past month (-2.31%) and two weeks (-2.52%) indicates lingering caution.

Looking ahead, analysts project Q3 2025 revenue at $3.24 billion and full-year sales at $11.99 billion. Yum China did not provide explicit guidance in its press release, leaving investors to rely on these estimates. The company’s ability to sustain margin expansion and transaction growth will likely be key drivers of future performance.

For a deeper dive into Yum China’s earnings and forward estimates, visit the earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.