Yum China Holdings, Inc. has reached a significant milestone by opening its 20,000th store across more than 2,800 cities and towns in China. This achievement coincides with the 10th anniversary of its listing on the New York Stock Exchange, celebrated at the annual Restaurant General Managers (RGM) convention in Chengdu.
The event in Chengdu, a city known for its culinary heritage, saw the simultaneous opening of six new stores, each representing one of Yum China's brands: KFC, Pizza Hut, Lavazza, Taco Bell, Little Sheep, and Huang Ji Huang. CEO Joey Wat attributed this milestone to the dedication of Yum China's employees and the loyalty of its customers. She emphasized the company's focus on resilience and growth as part of its RGM 3.0 strategy, which aims to transform strategy into action and achieve sustainable growth.
Yum China has ambitious plans to expand further, targeting 30,000 stores by 2030. This goal involves adding another 10,000 stores within the next four years, a pace that highlights the company's robust execution capabilities. Since opening its first KFC in China in 1987, it took 33 years to reach 10,000 stores, but only six years to double that number. The expansion strategy includes a hybrid model of equity and franchise operations, with diverse store formats tailored to various city tiers and consumer needs.
In addition to expanding its store count, Yum China is enhancing its offerings with side-by-side modules such as KCOFFEE café, KPRO, and Pizza Hut Burger Bar, aimed at capturing new consumer occasions and boosting sales. The company has consistently delivered double-digit growth in diluted earnings per share (EPS) over the past three years and aims to maintain this trajectory through 2028.
Innovation plays a crucial role in Yum China's growth strategy. Since 2023, the company has been integrating agentic AI to improve operational efficiency. In 2025, it piloted the "Q-Smart" AI assistant to aid restaurant managers with tasks like labor scheduling and inventory management. The latest iteration, the "AI Store Assistant, " offers real-time recommendations for operating decisions, helping restaurants adjust to traffic changes and reduce food waste.
Yum China's commitment to its workforce is evident in its "RGM No.1" principle, which prioritizes the needs of its restaurant general managers and frontline employees. This year, the company launched the RGM One-Stop Service Center, a platform that uses AI to assist RGMs with requests across various functions, from IT to finance. The system is designed to improve processes and support decision-making over time.
Moreover, Yum China is enhancing medical support for its employees, offering services such as medical appointment registration, hospitalization assistance, and caregiver support for eligible employees and their families. These initiatives aim to alleviate the burden of coordinating medical resources during critical times.
Looking forward, Yum China remains committed to its "People First" philosophy, which has been integral to its growth for nearly four decades. The company continues to provide a platform for employees to reach their full potential, ensuring that every contribution is recognized and valued.
