Yum China Holdings, Inc.

Good day and thank you for standing by. Welcome to Yum! China third 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 need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to turn the call over to our first speaker today, Ms. Lauren Sleep. Please go ahead.

Thank you, operator. Hello, everyone, and welcome to Yum! China's third quarter 2025 earnings conference call. With me on the call are our CEO, Ms. Joey Watt, and our CFO, Mr. Adrian Ding. Before we begin, I need to remind everyone that our remarks and investor materials contain forward-looking statements. These are subject to future events and uncertainties, and actual results may differ materially. Please consider these forward-looking statements together with the cautionary statement in our earnings release and the risk factors included in our SEC filing. We'll also be talking about non-GAAP financial measures. We encourage you to review the comparable GAAP measures along with the reconciliation of non-GAAP and GAAP measures provided in our earnings release, which is available on our investor relations website at ir.yamchina.com. You can also find both the webcast replay and a PowerPoint presentation on our IR website. Please note that all year-over-year growth rates discussed today exclude the impact of foreign currency unless we mention otherwise. With that, I'll now turn the call over to Joey Watt, CEO of Yum China.

Joey? Hello, everyone, and thank you for joining us. Building on our first half momentum, We achieved another solid quarter three, accelerating store openings, driving growth in both same-store and system sales, and expanding margins. Delivering growth across all three dimensions was no easy task, but we made it happen. System sales grew 4% year over year, outpacing the China restaurant industry. Same-store sales grew for the second consecutive quarter. Restaurant margin expanded to 17.3%. Together, these gains drove an 8% year-over-year increase in operating profit to $400 million, a quarter three record for adjusted operating profit. These results reflect the resilience of our established RGM strategy, which stands for resilience, growth, and moat, and the step-by-step execution of our teams in a dynamic market. Store expansion accelerated in quarter three with 536 net new stores. Our total store count exceeds 17,500 stores, keeping us on track to reach 20,000 stores by the end of 2026, as we promised in our last Investor Day. Leveraging our portfolio of brands and flexible store formats, we are penetrating deeper into more cities while enhancing convenience in existing cities. By brand, KFC is as resilient as ever, with 2% same-store sales growth, strong and steady restaurant margins, and a year-to-date record pace of new store openings. Pizza Hut accelerated store openings from the first half of 2025 surpassing the 4,000 store milestone while expanding restaurant margins year over year for the sixth consecutive quarter. Our dual focus on innovation and operational efficiency underpins our success, starting with our sales initiative. We have delivered same-store transaction growth every quarter since 2023. 11 in a row. Notably, Pizza Hut has achieved 17% same-store transaction growth for three consecutive quarters. These results highlight the success of our pricing strategy, keeping KFC price points relatively steady and lowering them at Pizza Hut amid improving restaurant margins. By making our food more accessible to more consumers, we attract more traffic. At the same time, we have transformed our operations for better efficiency. Great value and great prices must be accompanied by innovative, good-tasting food. Our focus spans three key areas. Hero products. limited time offers, and new growth drivers. First, our hero products remain powerful growth drivers and inspire strong repeat purchases. At KFC, chicken wings have been one of our core categories, featuring our hero products roasted wings and hot wings. We extended this core category with the launch of the latest crackling golden chicken wings, Bo Cui Jin Sha Ji Ci. Extra crispy outside, juicy inside, this Chinese style wing is packed with a sweet and spicy garlic punch. During the promotion, sales of the new wings surged matching the popularity of our roasted wings and showing great potential as a future growth engine. At Pizza Hut, pizzas account for over 40% of sales, with double-digit sales growth this quarter. We serve a broad range of pizzas, including pan and stuffed crust to satisfy diverse tastes. Most recently, Our new handcrafted thin crust pizza, Sou Zhuo Bao Di Pizza, became our best-selling crust within just two months of launch, now making up one in every three pizzas sold. Perfectly crispy with abundant toppings, it earned rave reviews and drove promising repeat purchases. Second is our LTOs, or Limited Time Offers. We keep our core menu focused to ensure operational efficiency while introducing highly selective products for limited time periods to drive repeat visits. These offerings are not one-time wonders, but are designed for lasting appeal. in some cases enduring for decades. KFC has developed several classic LTOs with a proven sales record that return periodically, such as chicken taco and double dan. Each time we add fresh choices, like our spicy beef wrap with crunchy lotus roots. which became a best-selling beef wrap LTO in last four years. Third, we are constantly exploring new growth drivers. New products such as KFC's whole chicken along with Pizza Hut's burgers are showing strong growth. We also see opportunities across our price ranges. Entry-level combos at KFC and entry-level pizzas at Pizza Hut achieved double-digit sales growth year-to-date. Taking it a step further, KFC is now exploring satisfying meals priced below 20 RMB to better reach customers with tighter budgets via select channels in some regions. These initiatives will also strengthen our relevance and appeal in lower tier cities. With our menu innovation and superb supply chain, we deliver outstanding value and drive traffic to our store at solid margins. While great tasting food is fundamental, emotional value is just as important. We collaborate with leading IPs in animation, gaming, and sports on themed food, packaging, and gifts, attracting new and young customers. In quarter three, delivery sales accounted for 51% of total sales, up from 40% in the same quarter last year. While there have been increased promotions on delivery platforms, as we discussed before, our core brands maintain a balanced approach driving top-line growth while protecting margins. K-Coffee Cafe took the opportunity to increase exposure and drive additional traffic. And Lavazza achieved double-digit same-store sales growth in quarter three. Let me now turn the call over to Adrian to discuss our results in detail. Afterward, I will share additional color on our strategy. Adrian?