Yum China Holdings, Inc. has reported a robust performance in its first-quarter results, highlighted by aggressive store expansion and impressive digital sales. The company opened a record 378 net new stores during the quarter, boosting its total store count to approximately 15,000. System sales grew by 6% year-over-year, and the company posted an operating profit of $374 million, alongside a core operating profit of $396 million. Importantly, digital sales accounted for roughly 89% of total sales, reaching $2.5 billion.

In addition to expanding their physical presence, Yum China's membership programs for KFC and Pizza Hut also saw significant growth, totaling 485 million members. These members generated about 65% of the brands' combined system sales. Operating profit margins were solid, with a restaurant margin reported at 17.6%. Despite a slight revenue miss, the company's strategic growth in digital platforms and membership programs remained strong, as reported by Investing.com.

Looking ahead, the company maintains a positive fiscal outlook with plans to open 1,500 to 1,700 net new stores and anticipates investing between $700 million and $850 million in capital expenditures. Yum China also aims to return $1.5 billion to shareholders via cash dividends and share repurchases, signaling its ongoing commitment to growth and enhancing shareholder value, according to PR Newswire.