A：The financial results mentioned exclude the impact of foreign currency, except when otherwise noted.

A：Yum China opened 636 net new stores in the first quarter, which is more than one-third of their full year target.

A：KFC remained resilient with chain saw sales growth of 1%, while Pizza Hut continued to grow in scale and profitability, delivering 18% operating profit growth. KFC had system sales growth and an operating profit margin expansion, while Pizza Hut's system sales grew and they maintained an improvement in same store transactions and restaurant margins.

A：KFC's innovative side by side modules are rapidly scaling and generating incremental sales and profit. K Coffee cafes have over 2600 locations and K Pro in over 280 locations. Take Coffee Cafe sales more than doubled year over year, and Pizza Hut accelerated expansion with 207 net new stores and maintained a focus on operational efficiency and leveraging a franchisee model in lower-tier cities.

A：KFC's main highlights include system sales growth of 5%, same store sales growth, the fourth consecutive quarter of growth, and an increase in same store transactions. They added around 400 K coffee cafes, and Take Coffee sales more than doubled year over year.

A：Pizza Hut had system sales growth of 1% year over year and maintained spring store transactions growth for the 13th consecutive quarter. They brought back the popular oil can campaign, which drove traffic. Pizza Hut's resol margin expanded by 60 basis points year over year to 15.0%, and ocean margin increased by 100 basis points. Overall, Pizza Hut continued to improve efficiency and maintain strong food innovation supply chain and digital capabilities.

A：The projected number of stores for Young China, KFC, and Pizza Hut in 2026 is more than 20,000 total stores, with an aim to open more than 1,900 new stores in the year.

A：Pizza Hut's 'Wow' store model is making good progress, with store counts doubling year over year to around 390 in the quarter. New equity 'Wow' stores have achieved rental margins in line with Pizza Hut's main model. The company is also implementing the Gemini model, which involves nearly 80 'Wow' store openings in the quarter, mostly in new lower tier cities, and operated by franchisees.

A：The company is offering car site pickup at locations without dedicated car lengths, using areas with pool over areas. This approach brings orders directly to consumers' cars, significantly reducing capital expenditure and providing greater flexibility for takeaway sales.

A：Sales grew script year over year, with same store sales growing slightly year over year around 1%. March sales were softer than expected due to the timing between Chinese New Year holidays and the additional spring break, and compared against last year's SW IP campaigns.

A：Operational margin was 18.2%, 40 basis point lower year over year. Net income was $309 million, flat year over year. Excluding the investment in May, net income grew Ed year over year.

A：The company expects positive same store sales growth and the lythgoe quarter of positive stream store transaction growth in the second quarter. Rider costs remain a significant headwind, with a less difficult year-over-year comparison expected in the lythgoe quarter. The situation in the Middle East is not expected to significantly impact the cost of sales this year.

A：The full year 2026 targets mentioned include same store sales index of 100 to 102, mid to high single-digit system sales growth, high single-digit operating profit growth, doubled EPS growth, a slight improvement in industrial margin, and Op margin for Young China. The company is also on track to reach 20,000 stores by year-end, plans to return approximately $1.25 billion to shareholders for the full year 2026, and has detailed plans for future free cash flow distribution.

A：The spring menu introduced over one-third new dishes, which include items such as a hand-tossed pizza sauce with multi grain crust and colorful protein and vegetable toppings, and a Thai pizza. These innovations are designed to taste great, provide a fun experience, and be highly Instagram-worthy, thereby enhancing the casual dining experience.

A：The delivery sector is experiencing more rational competition, which is a positive development for the industry and for Pizza Hut in the medium to long term. The reduction in subsidies is more pronounced for smaller orders, and the company expects platforms to increasingly focus on higher Ta orders, which benefits their business.

A：To drive more takeaway and in-store consumption, Pizza Hut is employing a disciplined approach to delivery subsidies, maintaining focus on operational growth supported by strong brand equity, food innovation, and great value. The company is confident in achieving its script full year targets and continues to work towards profitable growth and sustainable value for shareholders.

A：Pizza Hut has been disciplined in managing delivery subsidies and believes it is well positioned for the rationalization of delivery subsidies. The company reiterates its annual guidance on top line for comp sales growth of 100 to 102%, which it is confident to achieve. In terms of financial impact, the sequential improvement in home sales in China, KFC, Pizza Hut, and delivery sales growth is anticipated. For the full year, KFC's T is expected to either slightly decrease or stay generally stable, while the delivery sales growth will lead to a more moderate decline in Peter Hutt's delivery T. Cost pressure is expected to moderate in the second half due to the higher delivery mix and efficiency initiatives, supporting the margin.

A：The expected trend is that the rider cost pressure will moderate in the second half of the year because the delivery mix is higher in the base, which is anticipated to be beneficial for KFC's costs.

A：The increase in KFC's CoS in the first quarter is attributed to a new 'all you can eat' campaign, which is seen as great value for money, and the introduction of new menu items that are still cost-optimizing for KFC.

A：Margin expansion is expected for the group despite consistent headwinds on Co due to the delivery mix increase. The group faces tailwinds due to efficiency initiatives and is expected to have better rental conditions and lower capital expenditure, contributing to an annual guidance on margin with a slight increase in operating margin for the group.

A：The new three-year target for Pizza Hut's operating margin is a 14.5% revenue margin based on the current run rate, and it is suggested that this target might be achieved earlier than expected.

A：The improved consumer sentiment and pricing trend are being driven by more stability in pricing and increased competition among players taking pricing actions, which reflects a more supportive consumer environment and more rational competition among delivery platforms.

A：New offerings such as the Wu Gaiian hot noodle and the 30 new dishes at Pizza Hut are driving performance, with the latter achieving sales of almost 40 million. The strategy for future pricing is to make it more friendly for KFC, and even in an inflationary environment, the company expects to see a decrease in T (presumably a pricing metric) due to the mix and innovation.

A：The new K concept is performing well, with the train mix selling very encouragingly and the business selling much higher than the KFC business. The new business is seeing rapid growth, adding to about 20% of sales uplift to current stores, and is particularly successful in tier 1 and tier 2 cities, with promising early results in tier 3 cities.

A：The easing of pressure on B in the second quarter was attributed to only one month of delivery subsidizing in the base period, which was in June of the previous year, compared to the second half of the year where the subsidy and mix were in the base, significantly reducing pressure.

A：In the short term, for quarter II, the company expects a broadly stable operating margin for the group compared to the previous year, considering various factors such as KFC and Pizza Hut. In the long term, the company remains confident in the previously shared guidance, expecting KFC to have a relatively stable margin and Pizza Hut to have a margin expansion, exceeding a 14.5% margin by 2028.

A：The company anticipates managing future growth and pressures related to delivery costs by offsetting the increase in delivery expenses with a decrease in the ticket on rider over the medium term. The goal is to maintain solid growth for the concept C while facing pressures on the front, especially as the mix increases due to the delivery subsidy.