Yum China Holdings, Inc.

Good day and thank you for standing by. Welcome to the Yum China First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. please be advised that today's conference is being recorded. I would now like to hand the conference over to our speaker today, Florence Lipp, Senior Director of Investment Relations. Please go ahead.

Thank you, Operator. Hello, everyone. Thank you for joining YUM China's first quarter 2025 earnings conference call. On today's call are our CEO, Ms. Joey Watt, and our CFO, Mr. Adrian Dink. I'd like to remind everyone that our earnings call and investor materials contain forward-looking statements, which are subject to future events and uncertainties. Actual results may differ materially from these forward-looking statements. All forward-looking statements should be considered in conjunction with the cautionary statement in our earnings release and the risk factors included in our filings with the SEC. This call also includes certain non-GAAP financial measures. you should carefully consider the comparable gap measures. Reconciliation of long gap and gap measures is included in our earnings relief, which is available to the public through our investor relations website located at ir.yamchina.com. You can also find a webcast of this call and a PowerPoint presentation on our IR website. Please note that during today's call, all year-over-year growth results exclude the impact of foreign currency, unless otherwise noted. Now, I would like to turn the call over to Joey Watt, CEO of Yum China. Joey?

Hello, everyone, and thank you for joining us. In quarter one, we delivered another solid set of results. Our due focus on operational efficiency and innovation led to improvements in both our top and bottom lines. We achieved first quarter record highs in revenue, net income, and diluted EPS. Our same-store sales index advanced to 100% of prior year level for the first time since the first quarter of 2024 for both KFC and Pizza Hut. Same-store transactions have grown for nine consecutive quarters As our top line expanded, our margins also improved. Restaurant margin expanded by 100 basis points year over year. As a result, our operating profit grew by 8% and dilute EPS increased by 10%. This performance underscores our team's diligent effort and effectiveness of our strategy. Last quarter, I mentioned that I felt Pizza Hut had reached an inflation point. I'm pleased to report that we've been able to sustain the positive momentum. In quarter one, we achieved notable improvements in both same-store sales index and margins. Pizza Hut's 2025 new menu Further enhanced is value for money proposition and mass market positioning, driving significant traffic growth. It also enabled simpler operations, contributing to the restaurant margin improvement in Q1. KFC remains a resilient fortress, achieving solid growth and profitability through both good times In Q1, KFC's system sales grew by 3%, and its restaurant margin expanded to 19.8%. In Q1, we also opened 300 K-Coffee cafes, reaching a total of 1,000 locations nationwide. Let me now turn the call over to Adrian to discuss our results in detail. Afterward, I will share additional color on our strategies. Adrian?