Yum China Holdings, Inc.

Good day and thank you for standing by. Welcome to the Yum China first quarter 2026 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, today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Senior IR Director, Florence Lipp. Please go ahead.

Thank you, operator. Hello, everyone, and welcome to Yum! China's first quarter 2026 earnings conference call. With me on the call are our CEO, Ms. Joey Watt, and our CFO, Mr. Adrian Ding. Before we begin, I will 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 refer 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 gap measures along with the reconciliation of non-gap and gap 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 our 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. Once again, we delivered solid results in a dynamic environment, reflecting the successful execution of our RGM 3.0 strategy. which balances resilience, growth, and moat. In quarter one, revenue grew 10% and operating profit increased 12% in reporting currency, supported by a positive foreign exchange impact. We opened 636 net new stores, more than one-third of our full-year target. and ahead of schedule. Even as we accelerated store expansion to capture market opportunities, we maintained a dual focus on same-store sales growth and system sales growth. Same-store sales growth was slightly positive, though rounded to zero. Same-store transactions grew for the 13th consecutive quarter. Excluding foreign exchange impact, system sales grew 4%, operating profit increased 6%, and operating profit margin expanded 20 basis points year over year. This marks the eighth consecutive quarter in which we delivered growth across all three metrics at the same time. By brand, KFC remained resilient. Same-store sales grew 1%, the fourth consecutive quarter of growth. System sales increased by 5%, and restaurant margins remained very healthy at 19.1%. Pizza Hut continued to grow in scale and profitability, delivering 18% operating profit growth on top of 27% growth in quarter one last year, both in reporting currency. Same-store transactions grew for the 13 consecutive quarter, while restaurant margins improved 60 basis points year over year to 15%. I would like to say a big thank you to our team for delivering solid results in this fast-changing environment. We maintain a strong dual focus on innovation and operational efficiency. Let me share a few updates on our key initiatives, and then I will hand it over to Adrian to go through our results in more detail. It always begins with good food and great value. During Chinese New Year, We offered a wide range of options to cater to both group gatherings and solo diners. At KFC, in addition to our signature golden buckets, we launched classic limited time offers, LTOs, such as shrimp burger, beef wrap, and wind buckets to drive additional traffic. Building on last year's hugely successful LTO campaign, Crackling Golden Chicken Wings became the first new permanent product we introduced during CMY to our menu. KFC's innovative side-by-side modules are scaling rapidly, delivering meaningful incremental sales and profit. K-Coffee cafes are now in over 2,600 locations and K-Pro in more than 280 locations. K-Coffee cafes generate around mid single digit sales uplift and K-Pro around 20% to their parent KFC stores in quarter one. Our consumer insights help us identify consumer needs and our front end segmentation and back-end consolidation approach help us meet these needs effectively by sharing resources with the parent stores. These modules cross-sell existing members and require far lower investment and operating costs, making them attractive business models. Adrian will provide more updates on these two modules later in the call. At Pizza Hut, Alongside our classic super supreme campaign for Chinese New Year, we collaborated with popular IPs like Gunda and Butterbear and launched our signature All You Can Eat campaign. In quarter one, Pizza Hut accelerated expansion with 207 net new stores. That's nearly half of last year's full year net new openings. Over 100 new stores used the WOW format, most of them in new cities. Its lower-capacity model and simpler operations, supported by the franchisee model, opened up opportunities in lower-tier cities. We also continued to fine-tune the WOW model and enhance the menu, adding signature items from Pizza Hut's main menu while keeping its most popular value items to strengthen both relevance and appeal. Let me now turn the call over to Adrian. Adrian?