Yum China Raises 2026 Store Targets
The restaurant operator lifted its net new store goal to more than 2,400 after opening 692 locations in the third quarter.
Updated on Nov. 3, 2026 in Chinese Food
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Yum China raised its 2026 net new store target to more than 2,400 and its year-end total-store target to more than 20,500. The company reported 19,989 stores as of Sept. 30, after opening 692 net new locations during the third quarter.
Why it matters
The revised targets signal continued expansion of KFC and Pizza Hut across China as the company grows its store base. Franchisee participation is also becoming a larger part of that growth.
Yum China reported quarterly revenue of $3.477 billion, up 8% on a reported basis and 2% excluding foreign-currency effects, with diluted earnings per share of $0.91, up 20%. Same-store sales were 97% of prior-year levels, though same-store transactions rose 3%, marking the 15th straight quarter of year-over-year transaction growth.
The players
Yum China
Yum China is the operator of KFC and Pizza Hut restaurants in mainland China, with a store network that is among the largest of any restaurant company in the country.
The details
Franchisees opened 44% of the 692 net new stores added in the quarter, and the company aims for franchisees to account for 40% to 50% of net new KFC and Pizza Hut locations. Same-store sales faced difficult comparisons with the prior year's delivery platform subsidies, and adverse weather in August also weighed on results.
Timeline
July: Prior net new store target of more than 1,900 was set.
August: Adverse weather affected same-store sales.
Sept. 30: Yum China reported 19,989 stores and the quarter ended.
Third quarter 2026: 692 net new stores opened and the raised store targets were announced.
Market Landscape
The current quarter's same-store sales are measured against a prior year inflated by delivery platform subsidies, which made year-over-year comparisons harder for the chain. Yum China's continued store growth comes as its transaction count has risen for 15 consecutive quarters, even as headline same-store sales lag.
Expanding KFC and Pizza Hut store networks in China means more locations for customers to choose from in the coming year. The company's growing reliance on franchisees may shape where new outlets open and how they are run.
The takeaway
Store growth and transaction counts can rise even when same-store sales soften, so headline sales figures alone do not show the full picture. Readers tracking the chain should watch both store openings and transaction trends in future quarterly reports.
Further reading
For more on the chains driving this growth, see our coverage of Chinese Food.
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Do you think new fast-food chain locations improve dining options in your area?
