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Rapid expansion on menu of quick-service restaurant chains

By Wang Zhuoqiong | China Daily | Updated: 2026-02-24 09:47
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Customers visit a KFC restaurant in Weihai, Shandong province, on Jan 30. Yum China, operator of KFC, posted a 9 percent increase in total revenue for the fourth quarter of 2025. TANG KE/FOR CHINA DAILY

Two of the world's leading quick-service restaurant chains — McDonald's and Yum China — posted growth in the Chinese market in 2025, boosted by aggressive expansion, same-store sales growth, and an increasing reliance on delivery services.

McDonald's International Developmental Licensee segment, which covers the Chinese market performance, saw particularly strong growth in comparable sales, increasing by 4.6 percent for the full year and 4.5 percent in the fourth quarter.

Currently, McDonald's holds a 48 percent stake in McDonald's China, with the remaining 52 percent held by the CITIC Consortium led by CITIC Capital.

The company saw over 1,000 new restaurant openings in China in 2025 and plans to open a further 1,000 new restaurants this year.

Ian Borden, McDonald's chief financial officer, said during the earnings call this month that the company was able to maintain its market share in the country.

"We now have a presence in every province," Borden said.

As of the end of 2025, McDonald's operated over 7,740 restaurants in China.

The company also continues to expand, with plans to reach 10,000 restaurants in the country by 2028, according to media reports last year.

Globally, the restaurant chain reported system-wide sales of nearly $140 billion, marking a 5.5 percent increase in constant currency. The company's full-year results reflected strong same-store sales growth of more than 3 percent, with the fourth quarter posting an even more impressive rise of over 5.5 percent. This growth was bolstered by robust performance across all geographic segments and a rapid expansion of new restaurant openings.

The company opened 2,275 new restaurants globally in 2025, continuing its aggressive expansion strategy with more than 2,000 locations added in each of the previous two years.

Looking ahead, the company plans to accelerate its expansion further, targeting about 2,600 restaurant openings in 2026, putting it on track to reach 50,000 restaurants globally by the end of 2027.

Yum China, a leading operator of food and beverage brands in the region, posted a 9 percent increase in total revenue for the fourth quarter of 2025, reaching $2.8 billion, with system-wide sales growing by 7 percent.

Same-store sales increased by 3 percent and operating profit surged 25 percent to $187 million. For the full year, Yum China's total revenue grew by 4 percent to $11.8 billion, with system-wide sales rising by 4 percent and same-store sales up by 1 percent.

One of the standout trends for Yum China has been the rapid expansion of its delivery business, which grew by 25 percent year-on-year and now represents nearly 48 percent of the company's restaurant revenue, up from 39 percent in 2024. Its KFC and Pizza Hut brands both saw significant delivery growth in 2025, with KFC's delivery sales increasing by 26 percent and Pizza Hut's by 22 percent compared to that of a year before.

According to a survey conducted by the China Chain Store and Franchise Association in early January, nearly half of the enterprises in the chain catering industry rely heavily on delivery orders with this driven by intensified food delivery competition in 2025.

Among the surveyed companies, 44.6 percent reported that delivery orders accounted for over 30 percent of their total orders, while 17.4 percent even saw delivery orders exceed 50 percent. An excessively high proportion of delivery orders poses a potential risk of diverting revenue from dine-in services, the report said.

Yum China's strategic expansion into new restaurant formats is also paying off. The company's Kpro brand, which offers healthier fast-casual options, reached 200 locations by the end of 2025, and the company plans to double that number by the end of 2026. Its Kcoffee brand reached 2,200 stores last year.

Meanwhile, its Lavazza coffee chain continued to expand, reaching 146 locations by year-end, up from 112 the previous year.

As of Dec 31, Yum China had a total of 18,101 restaurants in operation. The company continues to focus on driving growth through its multibrand strategy, diversified store models and strong delivery capabilities, and is on track to expand its store count to over 30,000 by 2030.

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