a testament to our dual focus on innovation and operational efficiency,” noting that the company is delivering growth across same-store sales, new store openings and margins. Store openings hit record pace Expansion accelerated to 536 net new stores in the quarter, bringing Yum China’s footprint to 17,514 locations across six brands. The company remains on track for 1600 – 1800 net new stores this year and 20,000 by the end of next year, with franchisees accounting for about one-third of the new units this quarter. “Leveraging our portfolio of brands and flexible store formats, we are penetrating deeper into more cities while enhancing convenience in existing cities,” Joey Wat, CEO of Yum China.  The franchise mix reached 41 per cent for KFC and 27 per cent for Pizza Hut, a key part of the company’s strategy to lower capital intensity and improve returns. “KFC grew at its fastest store-opening pace year-to-date, while Pizza Hut has accelerated expansion, surpassing the 4000-store milestone in the quarter. Our flexible store formats, together with our franchise strategy, enable faster market entry with lower investment,” Wat said.  KFC strength holds, modular growth expands  KFC, which contributes roughly three-quarters of Yum China’s system sales, remained the cornerstone. The brand posted 5 per cent system sales growth, 2 per cent same-store sales growth, and a record US$384 million in operating profit, up 6 per cent year-on-year. KFC’s model is evolving from a pure quick-service chain to a multi-format platform. Its KCoffee café concept, embedded within KFC stores, has expanded to 1800 locations, with daily cup sales up 30 per cent year-on-year. Product innovation also remains a core differentiator. The recent launch of Crackling Golden Chicken Wings matched sales of KFC’s flagship roasted wings, reinforcing wings as a “hero category.” Pizza Hut’s turnaround gains momentum  After years of repositioning, Pizza Hut is proving resilient. The brand posted 4 per cent system sales growth, its 11th straight quarter of transaction gains, and a 7 per cent rise in operating profit to US$57 million.  Pizza Hut’s Wow has expanded to 250 stores, adding nearly 50 stores year-to-date, thanks to its low-capex model and streamlined operations.  “We are confident in the strength of Pizza Hut Brand in China and our ongoing operation and significant growth potential of Pizza Hut here in China remain unchanged,” said Adrian Ding, chief financial officer at Yum China.  Digital sales Yum China’s digital ecosystem continues to underpin its performance. Digital orders accounted for 95 per cent of total sales, totalling $2.8 billion, while membership across KFC and Pizza Hut surpassed 575 million, up 13 per cent year-on-year. Ding confirmed the company remains disciplined amid aggressive platform promotions. Value over volume  Yum China’s steady performance stands out against a backdrop of uneven consumer recovery in China. Traffic improved during the National Day holiday, but spending patterns remain cautious. “Lower-tier cities perform slightly better, due to greater domestic travel here. But again, the consumers feel very cautious. So, for us, we are truly aware that it’s not just about having good prices, it’s about pricing right, providing value for money, together with good quality food and emotional value,” Wat said.  Yum China’s efforts to introduce KFC meals below 20 yuan and entry-level pizzas have driven double-digit sales growth in those tiers, reinforcing the brand’s adaptability to market realities. Looking ahead, management expects mid-single-digit system sales growth in Q4, with same-store sales growth similar to Q3. While Q4 is traditionally a softer season, Yum China aims to deliver its 12th straight quarter of positive transaction growth. Further reading: Yum China’s winning formula: Lower-tier cities as key markets.