Q2 2026 Earnings

Operating metrics disclosed this quarter

Read from the filing itself — XBRL does not carry these, so no standard financial dataset has them.

• Core Operating Profit

  $328.0M

  Supplementary information – Non-GAAP Measures (b) Restaurant profit $ 469 $ 422 12 5 $ 1,022 $ 942 9 3 Restaurant margin (%) 16.1 % 16.1 % — ppts. — ppts. 17.2 % 17.4 % (0.2 ) ppts. (0.2 ) ppts. Adjusted Operating Profit $ 348 $ 304 $ 795 $ 703 Core Operating Profit $ 328 $ 304 $ 751 $ 703 Core OP Margin (%) 11.1 % 10.9 % 12.4 % 12.2 % Adjusted Net Income – Yum China Holdings, Inc. $ 244 $ 215 $ 553 $ 507 Adjusted Diluted Earnings Per Common Share $ 0.70 $ 0.58 $ 1.57 $ 1.35 Adjusted Effective Tax Rate 26.0 % 25.8 % 26.6 % 26.9 % Adjusted EBITDA $ 482 $ 427 $ 1,050 $ 941 (a) Represents the period-over-period change in percentage. (b) See “Non-GAAP Measures” below for definitions and reconciliations of the most directly comparable GAAP financial measures to the non-GAAP measures. Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14 30 Non-GAAP Measures In addition to the results provided in accordance with GAAP throughout this MD&A, the Company provides the following non-GAAP measures: • Measures adjusted for Special Items, which include Adjusted Operating Profit, Adjusted Net Income, Adjusted Earnings Per Common Share (“EPS”), Adjusted Effective Tax Rate and Adjusted EBITDA; • Company Restaurant Profit (“Restaurant profit”) and Restaurant margin; • Core Operating Profit and Core OP margin, which exclude Special Items, and further adjusted for Items Affecting Comparability and the impact of F/X; These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measures provides additional information to investors to facilitate the comparison of past and present results, excluding those items that the Company does not believe are indicative of our core operations. With respect to non-GAAP measures adjusted for Special Items, the Company excludes impact from Special Items for the purpose of evaluating performance internally and uses them as factors in determining compensation for certain employees. Special Items are not included in any of our segment results. Adjusted EBITDA is defined as net income including noncontrolling interests adjusted for equity in net earnings (losses) from equity method investments, income tax, interest income, net, investment gain or loss, depreciation and amortization, store impairment charges, and Special Items. Store impairment charges included as an adjustment item in Adjusted EBITDA primarily resulted from our semi-annual impairment evaluation of long-lived assets of individual restaurants, and additional impairment evaluation whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If these restaurant-level assets were not impaired, depreciation of the assets would have been recorded and included in EBITDA. Therefore, store impairment charges were a non-cash item similar to depreciation and amortization of our long-lived assets of restaurants. The Company believes that investors and analysts may find it useful in measuring operating performance without regard to such non-cash items. Restaurant profit is defined as Company sales less expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, restaurant-level payroll and employee benefits, rent, depreciation and amortization of restaurant-level assets, advertising expenses, and other operating expenses. Company restaurant margin percentage is defined as Restaurant profit divided by Company sales. We also use Restaurant profit and Restaurant margin for the purpose of internally evaluating the performance of our Company-owned restaurants and we believe they provide useful information to investors as to the profitability of our Company-owned restaurants. Core Operating Profit is defined as Operating Profit adjusted for Special Items, and further excluding Items Affecting Comparability and the impact of F/X. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Items such as charges, gains and accounting changes, which are viewed by management as significantly impacting the current period or the comparable period, due to changes in policy or other external factors, or non-cash items pertaining to underlying activities that are different from or unrelated to our core operations, are generally considered “Items Affecting Comparability.” Examples of Items Affecting Comparability include, but are not limited to: temporary relief from landlords and government agencies; VAT deductions due to tax policy changes; and amortization of reacquired franchise rights recognized upon acquisitions. We believe presenting Core Operating Profit provides additional information to further enhance comparability of our operating results and we use this measure for purposes of evaluating the performance of our core operations. Core OP margin is defined as Core Operating Profit divided by Total revenues, excluding the impact of F/X.

• Core Operating Profit Margin

  11.1%

  Supplementary information – Non-GAAP Measures (b) Restaurant profit $ 469 $ 422 12 5 $ 1,022 $ 942 9 3 Restaurant margin (%) 16.1 % 16.1 % — ppts. — ppts. 17.2 % 17.4 % (0.2 ) ppts. (0.2 ) ppts. Adjusted Operating Profit $ 348 $ 304 $ 795 $ 703 Core Operating Profit $ 328 $ 304 $ 751 $ 703 Core OP Margin (%) 11.1 % 10.9 % 12.4 % 12.2 % Adjusted Net Income – Yum China Holdings, Inc. $ 244 $ 215 $ 553 $ 507 Adjusted Diluted Earnings Per Common Share $ 0.70 $ 0.58 $ 1.57 $ 1.35 Adjusted Effective Tax Rate 26.0 % 25.8 % 26.6 % 26.9 % Adjusted EBITDA $ 482 $ 427 $ 1,050 $ 941 (a) Represents the period-over-period change in percentage. (b) See “Non-GAAP Measures” below for definitions and reconciliations of the most directly comparable GAAP financial measures to the non-GAAP measures. Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14 30 Non-GAAP Measures In addition to the results provided in accordance with GAAP throughout this MD&A, the Company provides the following non-GAAP measures: • Measures adjusted for Special Items, which include Adjusted Operating Profit, Adjusted Net Income, Adjusted Earnings Per Common Share (“EPS”), Adjusted Effective Tax Rate and Adjusted EBITDA; • Company Restaurant Profit (“Restaurant profit”) and Restaurant margin; • Core Operating Profit and Core OP margin, which exclude Special Items, and further adjusted for Items Affecting Comparability and the impact of F/X; These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measures provides additional information to investors to facilitate the comparison of past and present results, excluding those items that the Company does not believe are indicative of our core operations. With respect to non-GAAP measures adjusted for Special Items, the Company excludes impact from Special Items for the purpose of evaluating performance internally and uses them as factors in determining compensation for certain employees. Special Items are not included in any of our segment results. Adjusted EBITDA is defined as net income including noncontrolling interests adjusted for equity in net earnings (losses) from equity method investments, income tax, interest income, net, investment gain or loss, depreciation and amortization, store impairment charges, and Special Items. Store impairment charges included as an adjustment item in Adjusted EBITDA primarily resulted from our semi-annual impairment evaluation of long-lived assets of individual restaurants, and additional impairment evaluation whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If these restaurant-level assets were not impaired, depreciation of the assets would have been recorded and included in EBITDA. Therefore, store impairment charges were a non-cash item similar to depreciation and amortization of our long-lived assets of restaurants. The Company believes that investors and analysts may find it useful in measuring operating performance without regard to such non-cash items. Restaurant profit is defined as Company sales less expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, restaurant-level payroll and employee benefits, rent, depreciation and amortization of restaurant-level assets, advertising expenses, and other operating expenses. Company restaurant margin percentage is defined as Restaurant profit divided by Company sales. We also use Restaurant profit and Restaurant margin for the purpose of internally evaluating the performance of our Company-owned restaurants and we believe they provide useful information to investors as to the profitability of our Company-owned restaurants. Core Operating Profit is defined as Operating Profit adjusted for Special Items, and further excluding Items Affecting Comparability and the impact of F/X. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Items such as charges, gains and accounting changes, which are viewed by management as significantly impacting the current period or the comparable period, due to changes in policy or other external factors, or non-cash items pertaining to underlying activities that are different from or unrelated to our core operations, are generally considered “Items Affecting Comparability.” Examples of Items Affecting Comparability include, but are not limited to: temporary relief from landlords and government agencies; VAT deductions due to tax policy changes; and amortization of reacquired franchise rights recognized upon acquisitions. We believe presenting Core Operating Profit provides additional information to further enhance comparability of our operating results and we use this measure for purposes of evaluating the performance of our core operations. Core OP margin is defined as Core Operating Profit divided by Total revenues, excluding the impact of F/X.

• Company-Owned Restaurant Count

  15.8K

  Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14

• Franchise Restaurant Count

  3.5K

  Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14

• KFC Company-Owned Restaurant Count

  11.5K

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• KFC Franchise Restaurant Count

  2.3K

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• KFC Total Restaurant Count

  13.8K

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• Pizza Hut Company-Owned Restaurant Count

  4.0K

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• Pizza Hut Franchise Restaurant Count

  513

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• Pizza Hut Total Restaurant Count

  4.5K

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• Total Restaurant Count

  19.3K

  Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14

• Company-Owned Restaurant Count Growth

  10.0%

  Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14

• Franchise Restaurant Count Growth

  32.0%

  Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14

• KFC Company-Owned Restaurant Count Growth

  9.0%

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• KFC Franchise Restaurant Count Growth

  34.0%

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• KFC Total Restaurant Count Growth

  13.0%

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• Pizza Hut Company-Owned Restaurant Count Growth

  11.0%

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• Pizza Hut Franchise Restaurant Count Growth

  118.0%

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• Pizza Hut Total Restaurant Count Growth

  18.0%

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• Total Restaurant Count Growth

  14.0%

  Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14

• All Other Segments Restaurant Margin

  -2.3%

  All Other Segments All Other Segments reflects the results of Lavazza, Huang Ji Huang, Little Sheep, Taco Bell and our delivery operating segment. Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 12 $ 9 28 21 $ 22 $ 18 26 19 Franchise fees and income 2 3 (25 ) (30 ) 6 7 (25 ) (29 ) Revenues from transactions with franchisees 25 17 46 38 51 36 43 35 Other revenues 235 172 37 29 483 342 41 33 Total revenues $ 274 $ 201 36 28 $ 562 $ 403 39 32 Company restaurant expenses $ 12 $ 9 (17 ) (11 ) $ 25 $ 20 (17 ) (11 ) G&A expenses $ 8 $ 8 1 7 $ 14 $ 16 11 15 Expenses for transactions with franchisees $ 23 $ 16 (47 ) (39 ) $ 48 $ 33 (46 ) (39 ) Other operating costs and expenses $ 231 $ 168 (37 ) (29 ) $ 474 $ 335 (41 ) (34 ) Closures and impairment expenses, net $ 1 $ 1 3 8 $ 1 $ 2 32 35 Operating Profit (Loss) $ (1 ) $ (1 ) 80 81 $ — $ (3 ) NM NM OP Margin (%) (0.1 )% (0.8 )% 0.7 ppts. 0.7 ppts. — (0.8 )% 0.8 ppts. 0.8 ppts. Restaurant profit (loss) $ — $ — 74 80 $ (3 ) $ (2 ) 35 41 Restaurant margin (%) (2.3 )% (11.5 )% 9.2 ppts. 9.2 ppts. (8.2 )% (16.0 )% 7.8 ppts. 7.8 ppts. Total Revenues The quarter and year to date increase in Total revenues of All other segments, excluding the impact of F/X, was primarily driven by revenue generated by our delivery team for services provided to Company-owned restaurants, which is inter-segment revenue, and franchise restaurants as a result of increased delivery sales. Operating Profit (Loss) The quarter and year to date improvement in Operating profit (loss) excluding the impact of F/X, was primarily driven by the decrease in Operating loss from certain emerging brands. 38 Corporate and Unallocated Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Revenues from transactions with franchisees $ 108 $ 80 37 29 $ 217 $ 164 32 25 Other revenues $ 25 $ 17 43 34 $ 47 $ 34 38 31 Expenses for transactions with franchisees $ 108 $ 78 (39 ) (31 ) $ 216 $ 162 (33 ) (26 ) Other operating costs and expenses $ 23 $ 17 (40 ) (32 ) $ 44 $ 34 (33 ) (26 ) Corporate G&A expenses $ 36 $ 36 (2 ) 1 $ 80 $ 81 — 3 Other unallocated income, net $ — $ (1 ) (99 ) (100 ) $ — $ (1 ) (67 ) (71 ) Interest income, net $ 12 $ 25 (52 ) (52 ) $ 28 $ 51 (48 ) (49 ) Investment loss $ (6 ) $ (18 ) 65 65 $ (17 ) $ (15 ) (6 ) (6 ) Income tax provision (See Note 12) $ (92 ) $ (80 ) (14 ) (9 ) $ (215 ) $ (199 ) (8 ) (2 ) Equity in net earnings (losses) from equity method investments $ 2 $ 2 23 16 $ 4 $ 6 (15 ) (20 ) Effective tax rate (See Note 12) 26.0 % 25.8 % (0.2 ) ppts. (0.2 ) ppts. 26.6 % 26.9 % 0.3 ppts. 0.3 ppts. Revenues from Transactions with Franchisees Revenues from transactions with franchisees primarily include revenues derived from the Company’s central procurement model, whereby food and paper products are centrally purchased and then mainly sold to KFC and Pizza Hut franchisees. The quarter and year to date increase in revenues from transactions with franchisees, excluding the impact of F/X, was mainly due to the increase in system sales for franchisees primarily driven by acceleration of franchise store openings. Corporate G&A Expenses Corporate G&A expenses for the quarter remained flat. The year to date decrease in Corporate G&A expenses, excluding the impact of F/X, was primarily due to lower compensation costs and timing of government subsidies. Interest Income, Net The quarter and year to date decrease in interest income, net, excluding the impact of F/X, was primarily driven by lower investment balance with cash used in return to shareholders and lower interest rates. Investment Loss The investment loss mainly relates to the change in fair value of our investment in Meituan. See Note 3 for additional information. Income Tax Provision Our income tax provision primarily includes tax on our earnings generally at the Chinese statutory tax rate of 25% with certain Chinese subsidiaries qualified for preferential tax rates, withholding tax on planned or actual repatriation of earnings outside of China, Hong Kong profits tax, and U.S. corporate income tax, if any. The higher effective tax rate for the quarter ended June 30, 2026 was primarily due to higher U.S. tax impact. The lower effective tax rate for the year to date ended June 30, 2026 was primarily due to higher excess tax benefits upon exercise of share-based awards. Significant Known Events, Trends or Uncertainties Expected to Impact Future Results Tax Examination on Transfer Pricing We are subject to reviews, examinations and audits by Chinese tax authorities, the Internal Revenue Service and other tax authorities with respect to income and non-income based taxes. Since 2016, we have been under a national audit on transfer pricing by the STA in China regarding our related party transactions for the period from 2006 to 2015. The information and views currently exchanged with the tax authorities focus on our franchise arrangement with YUM. We continue to provide information requested by the tax authorities to the extent it is available to the Company. It is reasonably possible that there could be significant developments, including expert review and assessment by the STA, within the next 12 months. The ultimate assessment and decision of the STA will depend upon further review of the information provided, as well as ongoing technical and other discussions with the STA and in-charge local tax authorities, and therefore it is not possible to reasonably estimate the potential impact at this time. We will continue to defend our transfer pricing position. However, if the STA prevails in the assessment of additional tax due based on its ruling, the assessed tax, interest and penalties, if any, could have a material adverse impact on our financial position, results of operations and cash flows. 39 PRC Value-Added Tax (“VAT”) Effective May 1, 2016, a 6% output VAT replaced the 5% business tax (“BT”) previously applied to certain restaurant sales. Input VAT would be creditable to the aforementioned 6% output VAT. Our new retail business is generally subject to VAT rates at 9% or 13%. The latest VAT rates imposed on our purchase of materials and services mainly included 13%, 9% and 6%, which were gradually changed from 17%, 13%, 11% and 6% since 2017. These rate changes impact our input VAT on all materials and certain services, mainly including construction, transportation and leasing. However, the impact on our operating results was insignificant. Entities that are general VAT taxpayers are permitted to offset qualified input VAT paid to suppliers against their output VAT upon receipt of appropriate supplier VAT invoices on an entity-by-entity basis. When the output VAT exceeds the input VAT, the difference is remitted to tax authorities, usually on a monthly basis; whereas when the input VAT exceeds the output VAT, the difference is treated as a VAT asset which can be carried forward indefinitely to offset future net VAT payables. VAT related to purchases and sales which have not been settled at the balance sheet date is disclosed separately as an asset and liability, respectively, in the Condensed Consolidated Balance Sheets. At each balance sheet date, the Company reviews the outstanding balance of any VAT asset for recoverability, giving consideration to the indefinite life of VAT assets as well as its forecasted operating results and capital spending, which inherently includes significant assumptions that are subject to change. As of June 30, 2026 and December 31, 2025, the Company has not made an allowance for the recoverability of VAT assets, as the balance is expected to be utilized to offset against VAT payables or be refunded in the future. In June 2022, the Chinese Ministry of Finance (“MOF”) and the STA jointly issued Announcement [2022] No. 21, to extend full VAT credit refunds to more sectors and increase the frequency for accepting taxpayers’ applications. Beginning on July 1, 2022, entities engaged in providing catering services in China are allowed to apply for a lump sum refund of VAT assets accumulated prior to March 31, 2019. In addition, VAT assets accumulated after March 31, 2019 can be refunded on a monthly basis. In August 2025, the MOF and the STA jointly issued Announcement [2025] No. 7, amending the VAT refund policy. Effective September 1, 2025, certain industries (including the catering sector) are only eligible for a partial refund of VAT assets, subject to additional criteria stipulated in the announcement. As of June 30, 2026, current VAT assets of $159 million, non-current VAT assets of $14 million and net VAT payable of $7 million were recorded in Prepaid expenses and other current assets, Other assets and Accounts payable and other current liabilities, respectively, in the Condensed Consolidated Balance Sheets. The Company will continue to review the classification of VAT assets at each balance sheet date, giving consideration to different local implementation practices of refunding VAT assets and the outcome of potential administrative reviews. We have been benefiting from the retail tax structure reform since it was implemented on May 1, 2016. However, the amount of our expected benefit from this VAT regime depends on a number of factors, some of which are outside of our control. The interpretation and application of the new VAT regime are not settled at some local governmental levels. On December 25, 2024, China enacted the VAT Law, which came into effect on January 1, 2026, along with its implementation rules. In terms of tax rates, the VAT Law maintains the existing standard rates of 13%, 9% and 6%. We will continue to monitor regulatory developments and evaluate any potential impact on our financial statements. Foreign Currency Exchange Rate The reporting currency of the Company is the US$. Most of the revenues, costs, assets and liabilities of the Company are denominated in Chinese Renminbi (“RMB”). Any significant change in the exchange rate between US$ and RMB may materially affect the Company’s business, results of operations, cash flows and financial condition, depending on the weakening or strengthening of RMB against the US$. See “Item 3. Quantitative and Qualitative Disclosures About Market Risk” for further discussion. Condensed Consolidated Cash Flows Our cash flows for the years to date ended June 30, 2026 and 2025 were as follows: Net cash provided by operating activities was $976 million in 2026 as compared to $864 million in 2025. The increase was primarily driven by the increase in Operating profit along with working capital changes. 40 Net cash used in investing activities was $265 million in 2026 as compared to $290 million in 2025. The decrease was mainly due to the net impact on cash flows resulting from purchases and maturities of short-term investments, and long-term bank deposits and notes. Net cash used in financing activities was $739 million in 2026 as compared to $709 million in 2025. The increase was primarily driven by the increase of share repurchases and cash dividends paid on common stock, partially offset by the increase in the proceeds from short-term borrowings.

• Company Restaurant Margin

  16.1%

  Supplementary information – Non-GAAP Measures (b) Restaurant profit $ 469 $ 422 12 5 $ 1,022 $ 942 9 3 Restaurant margin (%) 16.1 % 16.1 % — ppts. — ppts. 17.2 % 17.4 % (0.2 ) ppts. (0.2 ) ppts. Adjusted Operating Profit $ 348 $ 304 $ 795 $ 703 Core Operating Profit $ 328 $ 304 $ 751 $ 703 Core OP Margin (%) 11.1 % 10.9 % 12.4 % 12.2 % Adjusted Net Income – Yum China Holdings, Inc. $ 244 $ 215 $ 553 $ 507 Adjusted Diluted Earnings Per Common Share $ 0.70 $ 0.58 $ 1.57 $ 1.35 Adjusted Effective Tax Rate 26.0 % 25.8 % 26.6 % 26.9 % Adjusted EBITDA $ 482 $ 427 $ 1,050 $ 941 (a) Represents the period-over-period change in percentage. (b) See “Non-GAAP Measures” below for definitions and reconciliations of the most directly comparable GAAP financial measures to the non-GAAP measures. Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14 30 Non-GAAP Measures In addition to the results provided in accordance with GAAP throughout this MD&A, the Company provides the following non-GAAP measures: • Measures adjusted for Special Items, which include Adjusted Operating Profit, Adjusted Net Income, Adjusted Earnings Per Common Share (“EPS”), Adjusted Effective Tax Rate and Adjusted EBITDA; • Company Restaurant Profit (“Restaurant profit”) and Restaurant margin; • Core Operating Profit and Core OP margin, which exclude Special Items, and further adjusted for Items Affecting Comparability and the impact of F/X; These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measures provides additional information to investors to facilitate the comparison of past and present results, excluding those items that the Company does not believe are indicative of our core operations. With respect to non-GAAP measures adjusted for Special Items, the Company excludes impact from Special Items for the purpose of evaluating performance internally and uses them as factors in determining compensation for certain employees. Special Items are not included in any of our segment results. Adjusted EBITDA is defined as net income including noncontrolling interests adjusted for equity in net earnings (losses) from equity method investments, income tax, interest income, net, investment gain or loss, depreciation and amortization, store impairment charges, and Special Items. Store impairment charges included as an adjustment item in Adjusted EBITDA primarily resulted from our semi-annual impairment evaluation of long-lived assets of individual restaurants, and additional impairment evaluation whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If these restaurant-level assets were not impaired, depreciation of the assets would have been recorded and included in EBITDA. Therefore, store impairment charges were a non-cash item similar to depreciation and amortization of our long-lived assets of restaurants. The Company believes that investors and analysts may find it useful in measuring operating performance without regard to such non-cash items. Restaurant profit is defined as Company sales less expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, restaurant-level payroll and employee benefits, rent, depreciation and amortization of restaurant-level assets, advertising expenses, and other operating expenses. Company restaurant margin percentage is defined as Restaurant profit divided by Company sales. We also use Restaurant profit and Restaurant margin for the purpose of internally evaluating the performance of our Company-owned restaurants and we believe they provide useful information to investors as to the profitability of our Company-owned restaurants. Core Operating Profit is defined as Operating Profit adjusted for Special Items, and further excluding Items Affecting Comparability and the impact of F/X. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Items such as charges, gains and accounting changes, which are viewed by management as significantly impacting the current period or the comparable period, due to changes in policy or other external factors, or non-cash items pertaining to underlying activities that are different from or unrelated to our core operations, are generally considered “Items Affecting Comparability.” Examples of Items Affecting Comparability include, but are not limited to: temporary relief from landlords and government agencies; VAT deductions due to tax policy changes; and amortization of reacquired franchise rights recognized upon acquisitions. We believe presenting Core Operating Profit provides additional information to further enhance comparability of our operating results and we use this measure for purposes of evaluating the performance of our core operations. Core OP margin is defined as Core Operating Profit divided by Total revenues, excluding the impact of F/X.

• Company Restaurant Profit

  $469.0M

  Supplementary information – Non-GAAP Measures (b) Restaurant profit $ 469 $ 422 12 5 $ 1,022 $ 942 9 3 Restaurant margin (%) 16.1 % 16.1 % — ppts. — ppts. 17.2 % 17.4 % (0.2 ) ppts. (0.2 ) ppts. Adjusted Operating Profit $ 348 $ 304 $ 795 $ 703 Core Operating Profit $ 328 $ 304 $ 751 $ 703 Core OP Margin (%) 11.1 % 10.9 % 12.4 % 12.2 % Adjusted Net Income – Yum China Holdings, Inc. $ 244 $ 215 $ 553 $ 507 Adjusted Diluted Earnings Per Common Share $ 0.70 $ 0.58 $ 1.57 $ 1.35 Adjusted Effective Tax Rate 26.0 % 25.8 % 26.6 % 26.9 % Adjusted EBITDA $ 482 $ 427 $ 1,050 $ 941 (a) Represents the period-over-period change in percentage. (b) See “Non-GAAP Measures” below for definitions and reconciliations of the most directly comparable GAAP financial measures to the non-GAAP measures. Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14 30 Non-GAAP Measures In addition to the results provided in accordance with GAAP throughout this MD&A, the Company provides the following non-GAAP measures: • Measures adjusted for Special Items, which include Adjusted Operating Profit, Adjusted Net Income, Adjusted Earnings Per Common Share (“EPS”), Adjusted Effective Tax Rate and Adjusted EBITDA; • Company Restaurant Profit (“Restaurant profit”) and Restaurant margin; • Core Operating Profit and Core OP margin, which exclude Special Items, and further adjusted for Items Affecting Comparability and the impact of F/X; These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measures provides additional information to investors to facilitate the comparison of past and present results, excluding those items that the Company does not believe are indicative of our core operations. With respect to non-GAAP measures adjusted for Special Items, the Company excludes impact from Special Items for the purpose of evaluating performance internally and uses them as factors in determining compensation for certain employees. Special Items are not included in any of our segment results. Adjusted EBITDA is defined as net income including noncontrolling interests adjusted for equity in net earnings (losses) from equity method investments, income tax, interest income, net, investment gain or loss, depreciation and amortization, store impairment charges, and Special Items. Store impairment charges included as an adjustment item in Adjusted EBITDA primarily resulted from our semi-annual impairment evaluation of long-lived assets of individual restaurants, and additional impairment evaluation whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If these restaurant-level assets were not impaired, depreciation of the assets would have been recorded and included in EBITDA. Therefore, store impairment charges were a non-cash item similar to depreciation and amortization of our long-lived assets of restaurants. The Company believes that investors and analysts may find it useful in measuring operating performance without regard to such non-cash items. Restaurant profit is defined as Company sales less expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, restaurant-level payroll and employee benefits, rent, depreciation and amortization of restaurant-level assets, advertising expenses, and other operating expenses. Company restaurant margin percentage is defined as Restaurant profit divided by Company sales. We also use Restaurant profit and Restaurant margin for the purpose of internally evaluating the performance of our Company-owned restaurants and we believe they provide useful information to investors as to the profitability of our Company-owned restaurants. Core Operating Profit is defined as Operating Profit adjusted for Special Items, and further excluding Items Affecting Comparability and the impact of F/X. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Items such as charges, gains and accounting changes, which are viewed by management as significantly impacting the current period or the comparable period, due to changes in policy or other external factors, or non-cash items pertaining to underlying activities that are different from or unrelated to our core operations, are generally considered “Items Affecting Comparability.” Examples of Items Affecting Comparability include, but are not limited to: temporary relief from landlords and government agencies; VAT deductions due to tax policy changes; and amortization of reacquired franchise rights recognized upon acquisitions. We believe presenting Core Operating Profit provides additional information to further enhance comparability of our operating results and we use this measure for purposes of evaluating the performance of our core operations. Core OP margin is defined as Core Operating Profit divided by Total revenues, excluding the impact of F/X.

• KFC Restaurant Margin

  17.1%

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• KFC Restaurant Profit

  $391.0M

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• Pizza Hut Restaurant Margin

  12.9%

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• Pizza Hut Restaurant Profit

  $78.0M

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• KFC Same-Store Sales Growth, Excluding F/X

  1.0%

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• Pizza Hut Same-Store Sales Growth, Excluding F/X

  1.0%

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• Same-Store Sales Growth, Excluding F/X

  1.0%

  Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14

• All Other Segments Operating Margin

  -0.1%

  All Other Segments All Other Segments reflects the results of Lavazza, Huang Ji Huang, Little Sheep, Taco Bell and our delivery operating segment. Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 12 $ 9 28 21 $ 22 $ 18 26 19 Franchise fees and income 2 3 (25 ) (30 ) 6 7 (25 ) (29 ) Revenues from transactions with franchisees 25 17 46 38 51 36 43 35 Other revenues 235 172 37 29 483 342 41 33 Total revenues $ 274 $ 201 36 28 $ 562 $ 403 39 32 Company restaurant expenses $ 12 $ 9 (17 ) (11 ) $ 25 $ 20 (17 ) (11 ) G&A expenses $ 8 $ 8 1 7 $ 14 $ 16 11 15 Expenses for transactions with franchisees $ 23 $ 16 (47 ) (39 ) $ 48 $ 33 (46 ) (39 ) Other operating costs and expenses $ 231 $ 168 (37 ) (29 ) $ 474 $ 335 (41 ) (34 ) Closures and impairment expenses, net $ 1 $ 1 3 8 $ 1 $ 2 32 35 Operating Profit (Loss) $ (1 ) $ (1 ) 80 81 $ — $ (3 ) NM NM OP Margin (%) (0.1 )% (0.8 )% 0.7 ppts. 0.7 ppts. — (0.8 )% 0.8 ppts. 0.8 ppts. Restaurant profit (loss) $ — $ — 74 80 $ (3 ) $ (2 ) 35 41 Restaurant margin (%) (2.3 )% (11.5 )% 9.2 ppts. 9.2 ppts. (8.2 )% (16.0 )% 7.8 ppts. 7.8 ppts. Total Revenues The quarter and year to date increase in Total revenues of All other segments, excluding the impact of F/X, was primarily driven by revenue generated by our delivery team for services provided to Company-owned restaurants, which is inter-segment revenue, and franchise restaurants as a result of increased delivery sales. Operating Profit (Loss) The quarter and year to date improvement in Operating profit (loss) excluding the impact of F/X, was primarily driven by the decrease in Operating loss from certain emerging brands. 38 Corporate and Unallocated Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Revenues from transactions with franchisees $ 108 $ 80 37 29 $ 217 $ 164 32 25 Other revenues $ 25 $ 17 43 34 $ 47 $ 34 38 31 Expenses for transactions with franchisees $ 108 $ 78 (39 ) (31 ) $ 216 $ 162 (33 ) (26 ) Other operating costs and expenses $ 23 $ 17 (40 ) (32 ) $ 44 $ 34 (33 ) (26 ) Corporate G&A expenses $ 36 $ 36 (2 ) 1 $ 80 $ 81 — 3 Other unallocated income, net $ — $ (1 ) (99 ) (100 ) $ — $ (1 ) (67 ) (71 ) Interest income, net $ 12 $ 25 (52 ) (52 ) $ 28 $ 51 (48 ) (49 ) Investment loss $ (6 ) $ (18 ) 65 65 $ (17 ) $ (15 ) (6 ) (6 ) Income tax provision (See Note 12) $ (92 ) $ (80 ) (14 ) (9 ) $ (215 ) $ (199 ) (8 ) (2 ) Equity in net earnings (losses) from equity method investments $ 2 $ 2 23 16 $ 4 $ 6 (15 ) (20 ) Effective tax rate (See Note 12) 26.0 % 25.8 % (0.2 ) ppts. (0.2 ) ppts. 26.6 % 26.9 % 0.3 ppts. 0.3 ppts. Revenues from Transactions with Franchisees Revenues from transactions with franchisees primarily include revenues derived from the Company’s central procurement model, whereby food and paper products are centrally purchased and then mainly sold to KFC and Pizza Hut franchisees. The quarter and year to date increase in revenues from transactions with franchisees, excluding the impact of F/X, was mainly due to the increase in system sales for franchisees primarily driven by acceleration of franchise store openings. Corporate G&A Expenses Corporate G&A expenses for the quarter remained flat. The year to date decrease in Corporate G&A expenses, excluding the impact of F/X, was primarily due to lower compensation costs and timing of government subsidies. Interest Income, Net The quarter and year to date decrease in interest income, net, excluding the impact of F/X, was primarily driven by lower investment balance with cash used in return to shareholders and lower interest rates. Investment Loss The investment loss mainly relates to the change in fair value of our investment in Meituan. See Note 3 for additional information. Income Tax Provision Our income tax provision primarily includes tax on our earnings generally at the Chinese statutory tax rate of 25% with certain Chinese subsidiaries qualified for preferential tax rates, withholding tax on planned or actual repatriation of earnings outside of China, Hong Kong profits tax, and U.S. corporate income tax, if any. The higher effective tax rate for the quarter ended June 30, 2026 was primarily due to higher U.S. tax impact. The lower effective tax rate for the year to date ended June 30, 2026 was primarily due to higher excess tax benefits upon exercise of share-based awards. Significant Known Events, Trends or Uncertainties Expected to Impact Future Results Tax Examination on Transfer Pricing We are subject to reviews, examinations and audits by Chinese tax authorities, the Internal Revenue Service and other tax authorities with respect to income and non-income based taxes. Since 2016, we have been under a national audit on transfer pricing by the STA in China regarding our related party transactions for the period from 2006 to 2015. The information and views currently exchanged with the tax authorities focus on our franchise arrangement with YUM. We continue to provide information requested by the tax authorities to the extent it is available to the Company. It is reasonably possible that there could be significant developments, including expert review and assessment by the STA, within the next 12 months. The ultimate assessment and decision of the STA will depend upon further review of the information provided, as well as ongoing technical and other discussions with the STA and in-charge local tax authorities, and therefore it is not possible to reasonably estimate the potential impact at this time. We will continue to defend our transfer pricing position. However, if the STA prevails in the assessment of additional tax due based on its ruling, the assessed tax, interest and penalties, if any, could have a material adverse impact on our financial position, results of operations and cash flows. 39 PRC Value-Added Tax (“VAT”) Effective May 1, 2016, a 6% output VAT replaced the 5% business tax (“BT”) previously applied to certain restaurant sales. Input VAT would be creditable to the aforementioned 6% output VAT. Our new retail business is generally subject to VAT rates at 9% or 13%. The latest VAT rates imposed on our purchase of materials and services mainly included 13%, 9% and 6%, which were gradually changed from 17%, 13%, 11% and 6% since 2017. These rate changes impact our input VAT on all materials and certain services, mainly including construction, transportation and leasing. However, the impact on our operating results was insignificant. Entities that are general VAT taxpayers are permitted to offset qualified input VAT paid to suppliers against their output VAT upon receipt of appropriate supplier VAT invoices on an entity-by-entity basis. When the output VAT exceeds the input VAT, the difference is remitted to tax authorities, usually on a monthly basis; whereas when the input VAT exceeds the output VAT, the difference is treated as a VAT asset which can be carried forward indefinitely to offset future net VAT payables. VAT related to purchases and sales which have not been settled at the balance sheet date is disclosed separately as an asset and liability, respectively, in the Condensed Consolidated Balance Sheets. At each balance sheet date, the Company reviews the outstanding balance of any VAT asset for recoverability, giving consideration to the indefinite life of VAT assets as well as its forecasted operating results and capital spending, which inherently includes significant assumptions that are subject to change. As of June 30, 2026 and December 31, 2025, the Company has not made an allowance for the recoverability of VAT assets, as the balance is expected to be utilized to offset against VAT payables or be refunded in the future. In June 2022, the Chinese Ministry of Finance (“MOF”) and the STA jointly issued Announcement [2022] No. 21, to extend full VAT credit refunds to more sectors and increase the frequency for accepting taxpayers’ applications. Beginning on July 1, 2022, entities engaged in providing catering services in China are allowed to apply for a lump sum refund of VAT assets accumulated prior to March 31, 2019. In addition, VAT assets accumulated after March 31, 2019 can be refunded on a monthly basis. In August 2025, the MOF and the STA jointly issued Announcement [2025] No. 7, amending the VAT refund policy. Effective September 1, 2025, certain industries (including the catering sector) are only eligible for a partial refund of VAT assets, subject to additional criteria stipulated in the announcement. As of June 30, 2026, current VAT assets of $159 million, non-current VAT assets of $14 million and net VAT payable of $7 million were recorded in Prepaid expenses and other current assets, Other assets and Accounts payable and other current liabilities, respectively, in the Condensed Consolidated Balance Sheets. The Company will continue to review the classification of VAT assets at each balance sheet date, giving consideration to different local implementation practices of refunding VAT assets and the outcome of potential administrative reviews. We have been benefiting from the retail tax structure reform since it was implemented on May 1, 2016. However, the amount of our expected benefit from this VAT regime depends on a number of factors, some of which are outside of our control. The interpretation and application of the new VAT regime are not settled at some local governmental levels. On December 25, 2024, China enacted the VAT Law, which came into effect on January 1, 2026, along with its implementation rules. In terms of tax rates, the VAT Law maintains the existing standard rates of 13%, 9% and 6%. We will continue to monitor regulatory developments and evaluate any potential impact on our financial statements. Foreign Currency Exchange Rate The reporting currency of the Company is the US$. Most of the revenues, costs, assets and liabilities of the Company are denominated in Chinese Renminbi (“RMB”). Any significant change in the exchange rate between US$ and RMB may materially affect the Company’s business, results of operations, cash flows and financial condition, depending on the weakening or strengthening of RMB against the US$. See “Item 3. Quantitative and Qualitative Disclosures About Market Risk” for further discussion. Condensed Consolidated Cash Flows Our cash flows for the years to date ended June 30, 2026 and 2025 were as follows: Net cash provided by operating activities was $976 million in 2026 as compared to $864 million in 2025. The increase was primarily driven by the increase in Operating profit along with working capital changes. 40 Net cash used in investing activities was $265 million in 2026 as compared to $290 million in 2025. The decrease was mainly due to the net impact on cash flows resulting from purchases and maturities of short-term investments, and long-term bank deposits and notes. Net cash used in financing activities was $739 million in 2026 as compared to $709 million in 2025. The increase was primarily driven by the increase of share repurchases and cash dividends paid on common stock, partially offset by the increase in the proceeds from short-term borrowings.

• KFC Operating Profit Margin

  14.2%

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• Pizza Hut Operating Profit Margin

  8.3%

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• KFC System Sales Growth

  13.0%

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• KFC System Sales Growth, Excluding F/X

  7.0%

  Segment Results KFC Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 2,294 $ 2,059 11 5 $ 4,704 $ 4,267 10 4 Franchise fees and income 24 19 23 16 47 40 20 13 Revenues from transactions with franchisees 19 17 18 11 38 33 16 10 Other revenues 1 1 (5 ) (11 ) 2 2 (4 ) (9 ) Total revenues $ 2,338 $ 2,096 12 5 $ 4,791 $ 4,342 10 4 Company restaurant expenses $ 1,903 $ 1,710 (11 ) (5 ) $ 3,852 $ 3,481 (11 ) (5 ) G&A expenses $ 67 $ 61 (9 ) (3 ) $ 128 $ 120 (6 ) (1 ) Franchise expenses $ 10 $ 9 (22 ) (15 ) $ 21 $ 19 (18 ) (11 ) Expenses for transactions with franchisees $ 15 $ 15 (3 ) 3 $ 30 $ 29 (4 ) 1 Other operating costs and expenses $ 1 $ 1 53 55 $ 1 $ 2 58 60 Closures and impairment expenses, net $ 10 $ 8 (30 ) (23 ) $ 10 $ 13 27 31 Operating Profit $ 332 $ 292 14 7 $ 749 $ 678 10 5 OP Margin (%) 14.2 % 14.0 % 0.2 ppts. 0.2 ppts. 15.6 % 15.6 % — ppts. — ppts. Restaurant profit $ 391 $ 349 12 6 $ 852 $ 786 8 3 Restaurant margin (%) 17.1 % 16.9 % 0.2 ppts. 0.2 ppts. 18.1 % 18.4 % (0.3 ) ppts. (0.3 ) ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 12 % System Sales Growth, excluding F/X 7 % 6 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 11,500 10,536 9 Franchisees 2,289 1,702 34 13,789 12,238 13 35 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 2,059 $ 86 $ 16 $ 133 $ 2,294 Cost of sales (631 ) (30 ) (8 ) (41 ) (710 ) Cost of labor (556 ) (26 ) (12 ) (36 ) (630 ) Occupancy and other operating expenses (523 ) (18 ) 11 (33 ) (563 ) Restaurant profit $ 349 $ 12 $ 7 $ 23 $ 391 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 4,267 $ 152 $ 33 $ 252 $ 4,704 Cost of sales (1,316 ) (53 ) (9 ) (78 ) (1,456 ) Cost of labor (1,110 ) (47 ) (48 ) (68 ) (1,273 ) Occupancy and other operating expenses (1,055 ) (35 ) 27 (60 ) (1,123 ) Restaurant profit $ 786 $ 17 $ 3 $ 46 $ 852 The increase in Company sales for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter and year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased rider cost associated with higher delivery sales mix in the current period and value-for-money offerings. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit.

• Pizza Hut System Sales Growth

  13.0%

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• Pizza Hut System Sales Growth, Excluding F/X

  6.0%

  36 Pizza Hut Quarter Ended Year to Date Ended % B/(W) % B/(W) 6/30/2026 6/30/2025 Reported Ex F/X 6/30/2026 6/30/2025 Reported Ex F/X Company sales $ 604 $ 545 11 4 $ 1,231 $ 1,129 9 3 Franchise fees and income 3 2 47 38 6 4 41 34 Revenues from transactions with franchisees 3 1 52 44 5 3 44 36 Other revenues 3 6 (41 ) (44 ) 6 13 (51 ) (54 ) Total revenues $ 613 $ 554 11 4 $ 1,248 $ 1,149 9 3 Company restaurant expenses $ 526 $ 472 (11 ) (5 ) $ 1,059 $ 972 (9 ) (3 ) G&A expenses $ 28 $ 26 (11 ) (5 ) $ 54 $ 52 (6 ) 0 Franchise expenses $ 2 $ 1 (43 ) (35 ) $ 3 $ 2 (37 ) (30 ) Expenses for transactions with franchisees $ 2 $ 1 (37 ) (29 ) $ 4 $ 3 (25 ) (18 ) Other operating costs and expenses $ 3 $ 5 41 45 $ 5 $ 11 53 56 Closures and impairment expenses, net $ 1 $ 3 52 54 $ 1 $ 3 56 58 Operating Profit $ 51 $ 46 11 5 $ 122 $ 106 15 9 OP Margin (%) 8.3 % 8.3 % — ppts. 0.1 ppts. 9.8 % 9.2 % 0.6 ppts. 0.6 ppts. Restaurant profit $ 78 $ 73 8 2 $ 172 $ 157 10 4 Restaurant margin (%) 12.9 % 13.3 % (0.4 ) ppts. (0.4 ) ppts. 14.0 % 13.9 % 0.1 ppts. 0.1 ppts. Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % Even Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 4,036 3,629 11 Franchisees 513 235 118 4,549 3,864 18 Company Sales and Restaurant Profit The changes in Company sales and Restaurant profit were as follows: Quarter Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 545 $ 21 $ 3 $ 35 $ 604 Cost of sales (177 ) (7 ) (8 ) (12 ) (204 ) Cost of labor (154 ) (6 ) (1 ) (10 ) (171 ) Occupancy and other operating expenses (141 ) (5 ) 4 (9 ) (151 ) Restaurant profit $ 73 $ 3 $ (2 ) $ 4 $ 78 Year to Date Ended Income (Expense) 6/30/2025 Store Portfolio Actions Other F/X 6/30/2026 Company sales $ 1,129 $ 36 $ — $ 66 $ 1,231 Cost of sales (363 ) (12 ) (20 ) (22 ) (417 ) Cost of labor (317 ) (9 ) 6 (19 ) (339 ) Occupancy and other operating expenses (292 ) (10 ) 15 (16 ) (303 ) Restaurant profit $ 157 $ 5 $ 1 $ 9 $ 172 As compared to the second quarter of 2025, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth and same-store sales growth. The increase in Restaurant profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by increased delivery cost associated with higher delivery sales mix in the current period and value-for-money offerings. 37 The increase in Company sales for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by net unit growth. The year to date increase in Restaurant profit, excluding the impact of F/X, was primarily driven by the increase in Company sales, efficiency improvement from streamlined operations and favorable commodity prices, partially offset by value-for-money offerings and increased delivery cost associated with higher delivery sales mix in the current period. Franchise Fees and Income/Revenues from Transactions with Franchisees The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings. Operating Profit The quarter and year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower closures and impairment expenses.

• System Sales Growth

  13.0%

  Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14

• System Sales Growth, Excluding F/X

  6.0%

  Performance Metrics Quarter Ended 6/30/2026 Year to Date Ended 6/30/2026 % change % change System Sales Growth 13 % 11 % System Sales Growth, excluding F/X 6 % 5 % Same-Store Sales Growth 1 % 1 % Unit Count 6/30/2026 6/30/2025 % Increase Company-owned 15,776 14,319 10 Franchisees 3,521 2,659 32 19,297 16,978 14

• Net New Unit Contribution, Excluding F/X

  5.0%

  The increase in Total revenues for the quarter ended June 30, 2026, excluding the impact of F/X, was primarily attributable to 5% net new unit contribution and 1% same-store sales growth. The increase in Total revenues for the year to date ended June 30, 2026, excluding the impact of F/X, was primarily driven by 4% net new unit contribution and 1% same-store sales growth.