Operating Profit Increased 14% YoY; OP Margin Expanded 100 Basis Points to 10.9%, a Second-Quarter Record High

Same-Store Sales Growth Turned Positive, Driven by 10th Consecutive Quarter of Same-Store Transaction Growth

Diluted EPS Up 5%, or 15% Excluding Mark-to-Market and F/X Impact

SHANGHAI, Aug. 5, 2025 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE:YUMC) today reported unaudited results for the second quarter ended June 30, 2025.

Second Quarter Highlights

Total system sales grew 4% year over year ("YoY"), excluding foreign currency translation ("F/X"). The growth sequentially improved from the first quarter and was primarily attributable to 4% of net new unit contribution and 1% same-store sales growth.
Same-store sales growth turned positive at 1%. Same-store transactions grew 2% YoY, the tenth consecutive quarter of growth.
Total revenues increased 4% YoY to $2.8 billion, also a 4% increase excluding F/X.
The Company opened 336 net new stores in the quarter, with 89 net new stores opened by franchisees, accounting for 26%.
Total store count reached 16,978 as of June 30, 2025, including 12,238 KFC stores and 3,864 Pizza Hut stores.
Operating profit grew 14% YoY to $304 million, a second-quarter record high. Core operating profit grew 14% YoY.
OP margin was 10.9%, an increase of 100 basis points YoY and also record high for the second quarter, supported by restaurant margin expansion and G&A savings.
Restaurant margin was 16.1%, an increase of 60 basis points YoY, driven primarily by savings in Food and Paper cost and Occupancy and Other Operating expenses.
Diluted EPS increased 5% YoY to $0.58, another second-quarter record-high, also a 5% increase excluding F/X. Excluding the negative impact of $0.04 from the mark-to-market equity investments in the 2025 and 2024 second quarters and F/X, Diluted EPS increased 15% YoY.
Returned $274 million to shareholders in the second quarter through $184 million in share repurchases and $90 million in cash dividends.
Delivery sales grew 22% YoY. Delivery contributed approximately 45% of total Company sales.
Digital sales reached $2.4 billion, with digital ordering accounting for approximately 94% of total Company sales.
Total membership of KFC and Pizza Hut was approximately 560 million, up 13% versus the prior year. Member sales accounted for approximately 64% of KFC and Pizza Hut's system sales in aggregate.

CEO Comments

Joey Wat, CEO of Yum China, commented, "I am pleased to announce that we achieved solid results in the second quarter. We turned same-store sales growth positive while expanding our store portfolio to nearly 17,000 locations. We delivered double-digit growth in operating profit and substantially expanded our margins. KFC stayed resilient and Pizza Hut sustained its momentum. Our dual focus on innovation and operational efficiency enabled us to deliver compelling value and experiences to our customers. We sparked cravings with innovative and great-tasting food, including the Crazy Spicy Zinger at KFC and the upgraded hand-crafted thin-crust pizza at Pizza Hut. In addition to great value for money, our meal sets with IP-themed toys brought emotional value to our customers and helped us set a new 2025 daily sales record on Children's Day."

Wat continued, "We are always exploring ways to broaden our addressable market. KFC has expanded KCOFFEE cafes to over 1,300 locations, leveraging KFC's store space, various in-store resources and membership. Pizza Hut's new menu has widened our price ranges, reaching previously underserved customer segments and contributing to double-digit same-store transactions growth for the quarter. At the same time, we are reinforcing our strategic moat via our membership programs and Super Apps, and enhancing the in-store experience, while capturing additional traffic on delivery platforms. We are also fortifying our end-to-end digitalization to streamline operations and elevate our customer experience. With the strength of our brands and our strategies, we are confident in delivering sustainable, long-term value for our shareholders."

Key Financial Results

Second Quarter

Year to Date Ended 6/30

%/ppts Change

2025

2024

Reported

Ex F/X

2025

2024

Reported

Ex F/X

System Sales Growth ⁽¹⁾ (%)

Same-Store Sales Growth ⁽¹⁾ (%)

(4)

Even

(3)

Operating Profit ($mn)

304

266

+14

703

640

+10

+11

Adjusted Operating Profit ⁽²⁾($mn)

304

266

+14

703

640

+10

+11

Core Operating Profit ⁽²⁾ ⁽³⁾($mn)

303

266

+14

708

640

+11

OP Margin ⁽⁴⁾(%)

10.9

9.9

+1.0

12.2

11.4

+0.8

Core OP Margin ⁽²⁾ ⁽⁵⁾ (%)

10.9

9.9

+1.0

12.2

11.4

+0.8

Net Income ($mn)

215

212

507

499

Adjusted Net Income ⁽²⁾($mn)

215

212

507

499

Diluted Earnings

Per Common Share ($)

0.58

0.55

1.35

1.26

Adjusted Diluted Earnings

Per Common Share ⁽²⁾($)

0.58

0.55

1.35

1.26

⁽¹⁾System sales and same-store sales percentages exclude the impact of F/X. Effective January 1, 2018, temporary store closures are

normalized in the same-store sales calculation by excluding the period during which stores are temporarily closed.

⁽²⁾See "Reconciliation of Reported GAAP Results to Non-GAAP Measures" included in the accompanying tables of this release for further details.

⁽³⁾Core operating profit is defined as operating profit adjusted for special items, further excluding items affecting comparability and the

impact of F/X. The Company uses core operating profit for the purposes of evaluating the performance of its core operations. Current

period amounts are derived by translating results at average exchange rates of the prior year period.

⁽⁴⁾OP margin refers to operating profit as a percentage of total revenues.

⁽⁵⁾ Core OP margin refers to core operating profit as a percentage of total revenues excluding F/X.

Note: All comparisons are versus the same period a year ago.

Percentages may not recompute due to rounding.

NM refers to not meaningful.

Capital Returns to Shareholders

The Company is on track to return a total of $3 billion to shareholders in 2025 through 2026, in addition to the $1.5 billion delivered to shareholders in 2024. The average annual amount of capital return over the three years is around 9% of our market capitalization as of August 4, 2025.
In the first half of 2025, the Company returned $536 million in capital to shareholders through $356 million in share repurchases and $180 million in cash dividends. Including the previously announced $510 million share repurchase agreements for the second half of 2025 and assuming a quarterly dividend of $0.24 per share, the Company expects the total return of capital for 2025 to be at least $1.2 billion.
As of June 30, 2025, approximately $936 million remained available for future share repurchases under the current authorization program.
The Board declared a cash dividend of $0.24 per share on Yum China's common stock, payable on September 23, 2025 to shareholders of record as of the close of business on September 2, 2025.

KFC

Second Quarter

Year to Date Ended 6/30

%/ppts Change

2025

2024

Reported

Ex F/X

2025

2024

Reported

Ex F/X

Restaurants

12,238

10,931

+12

12,238

10,931

+12

System Sales Growth (%)

Same-Store Sales Growth (%)

(3)

Even

(3)

Total Revenues ($mn)

2,096

2,014

4,342

4,244

Operating Profit ($mn)

292

264

+11

+10

678

636

Core Operating Profit ($mn)

291

264

+10

682

636

OP Margin (%)

14.0

13.1

+0.9

15.6

15.0

+0.6

Restaurant Margin (%)

16.9

16.2

+0.7

18.4

17.8

+0.6

System sales for KFC grew 5% YoY. Same-store sales increased 1% YoY, with flat same-store transactions. Ticket average was 1% higher YoY, driven mainly by increased delivery mix.
Delivery sales grew 25% YoY, contributing approximately 45% of KFC's Company sales.
KFC opened 295 net new stores during the quarter, with 119 net new stores opened by franchisees, accounting for 40%. Total store count reached 12,238 as of June 30, 2025.
Operating profit grew 11% YoY to $292 million, a record level for the second quarter. Core operating profit increased 10% YoY.
OP margin was 14.0%, an increase of 90 basis points YoY.
Restaurant margin was 16.9%, expanding 70 basis points YoY, primarily due to favorable commodity prices and streamlined operations, partially offset by the impact of higher rider cost due to the increased delivery mix, increased value-for-money offerings and wage inflation.

Pizza Hut

Second Quarter

Year to Date Ended 6/30

%/ppts Change

2025

2024

Reported

Ex F/X

2025

2024

Reported

Ex F/X

Restaurants

3,864

3,504

+10

3,864

3,504

+10

System Sales Growth (%)

Same-Store Sales Growth (%)

(8)

(7)

Total Revenues ($mn)

554

540

1,149

1,135

Operating Profit ($mn)

+16

+15

106

+22

+23

Core Operating Profit ($mn)

+15

107

+23

OP Margin (%)

8.3

7.4

+0.9

9.2

7.7

+1.5

Restaurant Margin (%)

13.3

13.2

+0.1

13.9

12.8

+1.1

System sales for Pizza Hut grew 3% YoY. Same-store sales increased 2% YoY. Same-store transactions grew 17% YoY, the tenth consecutive quarter of growth. Ticket average was 13% lower YoY, consistent with our strategy and driven mainly by better value-for-money.
Pizza Hut opened 95 net new stores during the quarter, with 21 net new stores opened by franchisees, accounting for 22%. Total store count reached 3,864 as of June 30, 2025.
Delivery sales grew 15% YoY, contributing approximately 43% of Pizza Hut's Company sales.
Operating profit grew 16% to $46 million, a record level for the second quarter. Core operating profit increased 15% YoY.
OP margin was 8.3%, an increase of 90 basis points YoY and a record level for the second quarter.
Restaurant margin was 13.3%, expanding 10 basis points YoY, primarily due to favorable commodity prices, streamlined operations and automation, partially offset by the impact of increased value-for-money offerings, increased cost associated with higher delivery sales mix and wage inflation.

Outlook

The Company targets:

- Approximately 1,600 to 1,800 net new stores in 2025.
- The franchise mix of net new stores to reach 40-50% for KFC and 20-30% for Pizza Hut in 2025, ahead of schedule and to moderately increase the mix within the guided range over the next few years.
- Capital expenditures in the range of approximately $600 million to $700 million for the 2025 fiscal year, revised down from the initial target of $700 million to $800 million, mainly due to lower capital expenditures per store.

The Company plans to return $3 billion to shareholders in 2025 through 2026, adding to the $1.5 billion it delivered to shareholders in 2024.

Note on Non-GAAP Measures

Reported GAAP results include items that are excluded from non-GAAP measures. See "Reconciliation of Reported GAAP Results to Non-GAAP Measures" and "Segment Results" within this release for non-GAAP reconciliation details.

Conference Call

Yum China's management will hold an earnings conference call at 7:00 a.m. U.S. Eastern Time on Tuesday, August 5, 2025 (7:00 p.m. Beijing/Hong Kong Time on Tuesday, August 5, 2025).

A live webcast of the call may be accessed at https://edge.media-server.com/mmc/p/kij3u6kb.

To join by phone, please register in advance of the conference through the link provided below. Upon registering, you will be provided with participant dial-in numbers and a unique access PIN.

Pre-registration Link: https://register-conf.media-server.com/register/BIb7706c47c6cf42db8f213a8ac7f0329c

A replay of the webcast will be available two hours after the event and will remain accessible until August 4, 2026. Additionally, earnings release accompanying slides will be available at the Company's Investor Relations website http://ir.yumchina.com.

For important news and information regarding Yum China, including our filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange, visit Yum China's Investor Relations website at http://ir.yumchina.com. Yum China uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to our projected capital return for 2025 and those set forth under the section titled "Outlook." We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook," "commit" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the future strategies, growth, business plans, investments, store openings, franchise mix of net new stores, capital expenditures, dividend and share repurchase plans, CAGR for system sales, operating profit and EPS, earnings, performance and returns of Yum China, anticipated effects of population and macroeconomic trends, pace of recovery of Yum China's business, the anticipated effects of our innovation, digital and delivery capabilities and investments on growth and beliefs regarding the long-term drivers of Yum China's business. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: whether we are able to achieve development goals at the times and in the amounts currently anticipated, if at all, the success of our marketing campaigns and product innovation, our ability to maintain food safety and quality control systems, changes in public health conditions, our ability to control costs and expenses, including tax costs, changes in political, economic and regulatory conditions in China, as well as changes in political, business, economic and trade relations between the U.S. and China, and those set forth under the caption "Risk Factors" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Our plan of capital returns to shareholders is based on current expectations, which may change based on market conditions, capital needs or otherwise. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results.

About Yum China Holdings, Inc.

Yum China is the largest restaurant company in China with a mission to make every life taste beautiful. The Company operates over 16,000 restaurants under six brands across over 2,400 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China, respectively. In addition, Yum China has partnered with Lavazza to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine. Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply chain, which includes an extensive network of logistics centers nationwide and an in-house supply chain management system. Its strong digital capabilities and loyalty program enable the Company to reach customers faster and serve them better. Yum China is a Fortune 500 company with the vision to be the world's most innovative pioneer in the restaurant industry. For more information, please visit http://ir.yumchina.com.

Contacts

Investor Relations Contact:

Tel: +86 21 2407 7556

IR@YumChina.com

Media Contact:

Tel: +86 21 2407 8288 / +852 2267 5807

Media@YumChina.com

Yum China Holdings, Inc.
Condensed Consolidated Statements of Income
(in US$ million, except per share data)
(unaudited)

	Quarter Ended						% Change			Year to Date Ended						% Change
	6/30/2025			6/30/2024			B/(W)			6/30/2025			6/30/2024			B/(W)
Revenues
Company sales	$	2,613		$	2,528			3		$	5,414		$	5,322			2
Franchise fees and income		24			22			11			51			47			9
Revenues from transactions with franchisees		115			96			20			236			203			16
Other revenues		35			33			6			67			65			3
Total revenues		2,787			2,679			4			5,768			5,637			2
Costs and Expenses, Net
Company restaurants
Food and paper		810			797			(2)			1,684			1,693			—
Payroll and employee benefits		712			666			(7)			1,431			1,374			(4)
Occupancy and other operating expenses		669			674			1			1,357			1,371			1
Company restaurant expenses		2,191			2,137			(3)			4,472			4,438			(1)
General and administrative expenses		131			133			2			269			273			2
Franchise expenses		10			9			(8)			21			19			(10)
Expenses for transactions with franchisees		110			92			(20)			227			196			(16)
Other operating costs and expenses		30			29			(3)			59			58			(1)
Closures and impairment expenses, net		12			13			11			18			14			(25)
Other income, net		(1)			—		NM				(1)			(1)			19
Total costs and expenses, net		2,483			2,413			(3)			5,065			4,997			(1)
Operating Profit		304			266			14			703			640			10
Interest income, net		25			31			(21)			51			69			(26)
Investment (loss) gain		(18)			8		NM				(15)			16		NM
Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments		311			305			2			739			725			2
Income tax provision		(80)			(77)			(4)			(199)			(190)			(5)
Equity in net earnings (losses) from equity method investments		2			—		NM				6			—		NM
Net income – including noncontrolling interests		233			228			2			546			535			2
Net income – noncontrolling interests		18			16			(9)			39			36			(6)
Net Income – Yum China Holdings, Inc.	$	215		$	212			1		$	507		$	499			1
Effective tax rate		25.8	%		25.2	%		(0.6)	ppts.		26.9	%		26.2	%		(0.7)	ppts.

Basic Earnings Per Common Share	$	0.58		$	0.55					$	1.36		$	1.27
Weighted-average shares outstanding (in millions)		373			389						374			395

Diluted Earnings Per Common Share	$	0.58		$	0.55					$	1.35		$	1.26
Weighted-average shares outstanding (in millions)		374			391						376			397



OP margin		10.9	%		9.9	%		1.0	ppts.		12.2	%		11.4	%		0.8	ppts.

Company sales		100.0	%		100.0	%					100.0	%		100.0	%
Food and paper		31.0			31.5			0.5	ppts.		31.1			31.8			0.7	ppts.
Payroll and employee benefits		27.2			26.3			(0.9)	ppts.		26.4			25.8			(0.6)	ppts.
Occupancy and other operating expenses		25.7			26.7			1.0	ppts.		25.1			25.8			0.7	ppts.
Restaurant margin		16.1	%		15.5	%		0.6	ppts.		17.4	%		16.6	%		0.8	ppts.

Percentages may not recompute due to rounding. NM refers to not meaningful.

Yum China Holdings, Inc.
KFC Operating Results
(in US$ million)
(unaudited)

	Quarter Ended						% Change			Year to Date Ended						% Change
	6/30/2025			6/30/2024			B/(W)			6/30/2025			6/30/2024			B/(W)
Revenues
Company sales	$	2,059		$	1,983			4		$	4,267		$	4,176			2
Franchise fees and income		19			16			16			40			34			14
Revenues from transactions with franchisees		17			12			32			33			26			26
Other revenues		1			3			(68)			2			8			(74)
Total revenues		2,096			2,014			4			4,342			4,244			2
Costs and Expenses, Net
Company restaurants
Food and paper		631			626			(1)			1,316			1,320			—
Payroll and employee benefits		556			513			(8)			1,110			1,055			(5)
Occupancy and other operating expenses		523			524			—			1,055			1,059			—
Company restaurant expenses		1,710			1,663			(3)			3,481			3,434			(1)
General and administrative expenses		61			60			(2)			120			121			1
Franchise expenses		9			8			(9)			19			17			(9)
Expenses for transactions with franchisees		15			11			(37)			29			23			(29)
Other operating costs and expenses		1			2			68			2			6			72
Closures and impairment expenses, net		8			6			(15)			13			7			(65)
Total costs and expenses, net		1,804			1,750			(3)			3,664			3,608			(2)
Operating Profit	$	292		$	264			11		$	678		$	636			6
OP margin		14.0	%		13.1	%		0.9	ppts.		15.6	%		15.0	%		0.6	ppts.

Company sales		100.0	%		100.0	%					100.0	%		100.0	%
Food and paper		30.7			31.6			0.9	ppts.		30.9			31.6			0.7	ppts.
Payroll and employee benefits		27.0			25.9			(1.1)	ppts.		26.0			25.3			(0.7)	ppts.
Occupancy and other operating expenses		25.4			26.3			0.9	ppts.		24.7			25.3			0.6	ppts.
Restaurant margin		16.9	%		16.2	%		0.7	ppts.		18.4	%		17.8	%		0.6	ppts.

Percentages may not recompute due to rounding.

Yum China Holdings, Inc.
Pizza Hut Operating Results
(in US$ million)
(unaudited)

	Quarter Ended						% Change			Year to Date Ended						% Change
	6/30/2025			6/30/2024			B/(W)			6/30/2025			6/30/2024			B/(W)
Revenues
Company sales	$	545		$	530			3		$	1,129		$	1,117			1
Franchise fees and income		2			2			20			4			4			21
Revenues from transactions with franchisees		1			1			44			3			2			56
Other revenues		6			7			—			13			12			9
Total revenues		554			540			3			1,149			1,135			1
Costs and Expenses, Net
Company restaurants
Food and paper		177			167			(6)			363			365			1
Payroll and employee benefits		154			150			(3)			317			312			(2)
Occupancy and other operating expenses		141			143			1			292			297			1
Company restaurant expenses		472			460			(3)			972			974			—
General and administrative expenses		26			27			5			52			54			4
Franchise expenses		1			1			(14)			2			2			(15)
Expenses for transactions with franchisees		1			1			(32)			3			2			(41)
Other operating costs and expenses		5			6			7			11			11			(3)
Closures and impairment expenses, net		3			5			37			3			5			38
Total costs and expenses, net		508			500			(2)			1,043			1,048			—
Operating Profit	$	46		$	40			16		$	106		$	87			22
OP margin		8.3	%		7.4	%		0.9	ppts.		9.2	%		7.7	%		1.5	ppts.

Company sales		100.0	%		100.0	%					100.0	%		100.0	%
Food and paper		32.5			31.6			(0.9)	ppts.		32.1			32.7			0.6	ppts.
Payroll and employee benefits		28.3			28.3			—	ppts.		28.1			27.9			(0.2)	ppts.
Occupancy and other operating expenses		25.9			26.9			1.0	ppts.		25.9			26.6			0.7	ppts.
Restaurant margin		13.3	%		13.2	%		0.1	ppts.		13.9	%		12.8	%		1.1	ppts.

Percentages may not recompute due to rounding.

Yum China Holdings, Inc.
Condensed Consolidated Balance Sheets
(in US$ million)

	6/30/2025		12/31/2024
	(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	592	$	723
Short-term investments		1,563		1,121
Accounts receivable, net		94		79
Inventories, net		360		405
Prepaid expenses and other current assets		383		366
Total Current Assets		2,992		2,694
Property, plant and equipment, net		2,415		2,407
Operating lease right-of-use assets		2,103		2,146
Goodwill		1,915		1,880
Intangible assets, net		145		144
Long-term bank deposits and notes		626		1,088
Equity investments		382		368
Deferred income tax assets		142		138
Other assets		263		256
Total Assets		10,983		11,121

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current Liabilities
Accounts payable and other current liabilities		2,056		2,080
Short-term borrowings		—		127
Income taxes payable		101		76
Total Current Liabilities		2,157		2,283
Non-current operating lease liabilities		1,760		1,816
Non-current finance lease liabilities		48		49
Deferred income tax liabilities		395		389
Other liabilities		154		157
Total Liabilities		4,514		4,694

Redeemable Noncontrolling Interest		13		13

Equity
Common stock, $0.01 par value; 1,000 million shares authorized; 371 million shares and 379 million shares issued at June 30, 2025 and December 31, 2024, respectively; 371 million shares and 378 million shares outstanding at June 30, 2025 and December 31, 2024, respectively.		4		4
Treasury stock		(12)		(52)
Additional paid-in capital		3,952		4,028
Retained earnings		2,110		2,089
Accumulated other comprehensive loss		(265)		(341)
Total Yum China Holdings, Inc. Stockholders' Equity		5,789		5,728
Noncontrolling interests		667		686
Total Equity		6,456		6,414
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	10,983	$	11,121

Yum China Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(in US$ million)
(unaudited)

	Year to Date Ended
	6/30/2025		6/30/2024
Cash Flows – Operating Activities
Net income – including noncontrolling interests	$	546	$	535
Depreciation and amortization		219		235
Non-cash operating lease cost		199		203
Closures and impairment expenses		18		14
Investment loss (gain)		15		(16)
Equity in net (earnings) losses from equity method investments		(6)		—
Distributions of income received from equity method investments		9		7
Deferred income taxes		(3)		(2)
Share-based compensation expense		22		23
Changes in accounts receivable		(13)		(5)
Changes in inventories		52		52
Changes in prepaid expenses, other current assets and value-added tax assets		(8)		(28)
Changes in accounts payable and other current liabilities		(53)		27
Changes in income taxes payable		24		25
Changes in non-current operating lease liabilities		(200)		(206)
Other, net		43		(21)
Net Cash Provided by Operating Activities		864		843
Cash Flows – Investing Activities
Capital spending		(259)		(358)
Purchases of short-term investments, long-te

Yum China Reports Second Quarter 2025 Results