YUM CHINA (09987) surged over 4% during intraday trading, and as of press time, was up 3.7% to HKD 386.6, with a trading volume of HKD 186 million. On the news front, the company recently released its financial results for the second quarter of 2026. Analysts note that the company's total revenue for the second quarter of 2026 reached USD 3.138 billion, a year-over-year increase of 13%, while net profit attributable to shareholders was USD 244 million, up 14% year-over-year. The growth rates for same-store sales and system sales in the second quarter of 2026 improved sequentially, with stable margin improvements highlighting its competitive advantages. The company added 560 net new stores in the second quarter of 2026, setting a new record for the quarter. Analysts believe that the company's new business formats are developing rapidly, with most achieving better-than-expected performance, leading some brands to raise their store opening targets. It is anticipated that after the company completes the acquisition of Pizza Hut's China operations, margins will improve and strategic flexibility will increase.

Analysts also point out that YUM CHINA (09987)'s net addition of 560 stores in the second quarter of 2026 set a new record for the period, bringing the total store count to 19,297 by the end of the quarter. The franchise ratio has risen to 18%. Improvements in operational efficiency and rental cost optimization have offset the pressure from rising costs, keeping overall restaurant margins resilient. Additionally, the company's acquisition of the Pizza Hut brand in mainland China is expected to be completed in August, which will save a 3% brand licensing fee and improve the economic model of Pizza Hut stores.