Grade History
| Quarter | Disclosure Quality | Financial Quality |
|---|---|---|
| Q1'25 → | B+ | B |
| Q2'25 → | B+ | B |
| Q3'25 → | B+ | B- |
| Q4'25 → | A- | B+ |
| Q1'26 → | B+ | B |
Promise Ledger · All Quarters
| Marked | Promise | Status | |
|---|---|---|---|
| Q1'26 | ✅ | Restaurant margin and OP margin roughly in line with prior year in Q1 OP margin expanded 20 bps vs guidance of 'roughly in line' | exceeded |
| Q1'26 | ⏳ | Return $1.5 billion to shareholders in 2026 $316M returned in Q1, on track with $214M buybacks and $102M dividends | pending |
| Q1'26 | ✅ | Double KPRO footprint to more than 400 locations in 2026 Raised target to 600 locations, 50% higher than original plan | exceeded |
| Q1'26 | ⏳ | More than 1,900 net new stores for full year 2026 636 stores in Q1 puts them ahead of pace (>1/3 of full year target) | pending |
| Q1'26 | ✅ | Thirteenth consecutive quarter of positive same-store transaction growth Achieved with continued transaction growth across brands | delivered |
| Q1'26 | ✅ | Fourth consecutive quarter of positive same-store sales growth (Q4 2025 call) Technically delivered with 'slightly positive' but rounded to 0% - barely met the commitment | delivered |
| Q4'25 | ✅ | Moderately improved margins for 2025 OP margin reached 10.9%, highest since US listing | delivered |
| Q4'25 | ✅ | Mid-single-digit system sales growth for 2025 Achieved 4% full year growth | delivered |
| Q4'25 | ✅ | K Coffee Cafe expansion to 1,500-1,600 locations Reached 2,200 locations, well ahead of target | exceeded |
| Q4'25 | ✅ | 1,600 to 1,800 net new stores in 2025 Opened 1,700+ stores, within guided range | delivered |
| Q4'25 | ✅ | 12th consecutive quarter of positive same-store transaction growth Achieved transaction growth across both brands | delivered |
| Q4'25 | ✅ | Q4 same-store sales growth at similar levels as Q3 Delivered 3% vs 1% in Q3, significant outperformance | exceeded |
| Q3'25 | ⏳ | Working toward 12th consecutive quarter of SSS transaction growth Achieved 11th quarter, explicitly targeting 12th in Q4 | pending |
| Q3'25 | ⏳ | Core OP margin slightly higher second half vs prior year Q3 showed improvement, Q4 guidance maintained but with caveats | pending |
| Q3'25 | ✅ | Pizza Hut restaurant margin to slightly improve second half Continued margin expansion for sixth consecutive quarter | delivered |
| Q3'25 | ✅ | KFC restaurant margin to be stable second half YoY Q3 restaurant margin maintained healthy levels as guided | delivered |
| Q3'25 | ✅ | Franchise economics improvement through Project savings sharing Adrian confirmed 'some progress' but provided no new details this quarter | delivered |
| Q3'25 | ⏳ | Double-digit percentage net new store growth for Pizza Hut in 2025 298 net new YTD suggests on track but no explicit confirmation | pending |
| Q3'25 | ✅ | 1,500-1,700 KCOFFEE locations by end 2025 Hit 1,800 in Q3, raised target to 1,700 - ahead of schedule | exceeded |
| Q2'25 | ⏳ | Double-digit net new store growth for Pizza Hut Reaffirmed for 2025, timing of openings shifted to H2 | pending |
| Q2'25 | ✅ | Pizza Hut margin to improve mid to long run Fifth consecutive quarter of YoY margin expansion | delivered |
| Q2'25 | ✅ | Maintain or slightly improve core OP margins OP margin up 100bps in Q2, guidance maintained for full year | delivered |
| Q2'25 | ⏳ | 1,600-1,800 net new stores in 2025 Reaffirmed guidance, expect ramp-up in H2 | pending |
| Q2'25 | ⏳ | Mid-single-digit system sales growth for full year 2025 On track with 4% Q2 growth, reaffirmed guidance | pending |
| Q2'25 | ✅ | Target 1,500 KCOFFEE locations by end 2025 Raised target to 1,700 mid-year with 1,300 already achieved | exceeded |
| Q1'25 | ✅ | K Coffee Cafe model to expand to 1,300 locations by end of 2025 Target raised to 1,500 locations, 200 more than original guidance | exceeded |
| Q1'25 | ⏳ | Franchise net new store mix expected to reach 40-50% for KFC and 20-30% for Pizza Hut over next few years Q1 showed 41% for KFC, 33% for Pizza Hut, but expect lower mix for full year | pending |
| Q1'25 | ✅ | Pizza Hut margin to improve in mid to long run Restaurant margin expanded 190 bps YoY, though timing shifts helped significantly | delivered |
| Q1'25 | ✅ | We expect no material impact from tariffs as over 90% of procurement is sourced locally Confirmed minimal direct impact, though monitoring indirect effects | delivered |
| Q1'25 | ❌ | KFC's goal for non-rider cost is to keep them stable by offsetting wage inflation through automation/simplification Non-rider costs increased 30 bps YoY, indicating wage inflation wasn't fully offset | missed |
| Q1'25 | ⏳ | We expect to hold core OP margin relatively stable or even slightly improve it year over year in 2025 Q1 shows improvement but too early to judge full year - maintained guidance | pending |
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