Yum China Holdings, Inc. (YUMC) stock surged 5.46% in pre-market trading Thursday, driven by the company's second-quarter 2026 results that exceeded Wall Street expectations and a strong outlook for the remainder of the year.

The restaurant giant reported adjusted earnings of $0.70 per diluted share, a 21% jump from the prior-year period and comfortably above the analyst consensus of $0.67. Revenue climbed 13% to $3.14 billion, also topping estimates of $3.05 billion. Same-store sales grew 1% year-over-year, while delivery sales soared 26%, now accounting for 54% of total sales. The company highlighted its ninth consecutive quarter of operating margin expansion and record store openings.

Adding to investor optimism, Yum China declared a quarterly cash dividend of $0.29 per share and reaffirmed its plan to return $1.5 billion to shareholders in 2026. The company also expressed confidence in its growth trajectory, citing the upcoming acquisition of the Pizza Hut brand in mainland China and its target to open over 1,900 new stores this year, bringing the total to more than 20,000 locations.