10 September 2024
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Market + Management

Yum China: Reports First Quarter 2024 Results

Shanghai / CN. (yb) Yum China Holdings Inc. reported unaudited results for the first quarter ended March 31, 2024. CEO Joey Wat: «We achieved solid sales growth in the first quarter with total revenues hitting an all-time high. Our core operating profit grew modestly from last year’s high base and EPS was up double digits excluding foreign currency. Meanwhile, we are marching forward with our expansion initiatives in a disciplined manner, bringing our total store count to a milestone of 15,000 stores.» First Quarter Highlights:

  • Total system sales grew 6 percent year over year (YoY) excluding foreign currency translation (F/X), primarily attributable to 8 percent net new unit contribution.
  • Total store count reached 15,022 as of March 31, 2024, including 10,603 KFC stores and 3,425 Pizza Hut stores. The Company opened 378 net new stores in the quarter, a record for the first quarter.
  • Total revenues increased 1 percent YoY to USD 2.96 billion. Excluding F/X, total revenues would have been USD 154 million higher, or 7 percent increase YoY.
  • Same-store sales reached 97 percent of the prior year’s level, against strong performance in the same period last year.
  • Operating profit was USD 374 million. Excluding F/X, operating profit would have been USD 22 million higher. Core operating profit grew 1 percent YoY to USD 396 million.
  • Operating profit as a percentage of total revenues (OP Margin) was 12.6 percent. Savings in G+A partially offset the lower Restaurant margin, which was 17.6 percent in the quarter.
  • Diluted EPS increased 4 percent YoY to USD 0.71, up 10 percent YoY excluding F/X.
  • Delivery sales grew 12 percent YoY and contributed approximately 38 percent of KFC and Pizza Hut’s Company sales. Digital sales reached USD 2.5 billion, with digital ordering accounted for approximately 89 percent of total Company sales.
  • Total membership of KFC and Pizza Hut reached 485 million. Member sales accounted for approximately 65 percent of KFC and Pizza Hut’s system sales in aggregate.
  • Yum China returned approximately USD 745 million to shareholders in the first quarter through share repurchases and cash dividends, the highest quarterly return in the Company’s history.

CEO Joey Wat: «Besides investing in our organic growth, we boosted capital returns to shareholders to a new record level. Remaining agile, we are continuously learning and innovating to embrace new consumer trends in changing market conditions. Our amazing high-ticket products, such as our KFC beef burger and whole chicken, grew by double digits in the quarter. Our six-year old iconic Crazy Thursday campaign and limited-time-offer of all-you-can-eat at Pizza Hut continue to excite customers and drive incremental traffic. By optimizing delivery strategies, KFC expanded its market share on the aggregator platforms and drove double-digit growth in delivery sales. At the same time, our relentless pursuit of greater operational efficiency from store to supply chain further fortifies our resilience. This has empowered us to pass on savings to our customers and other stakeholders.»

«Operating under a near-term challenging environment, we will remain laser-focused on understanding and capturing the evolving needs of consumers to continually connect with them. Looking toward the future, we are absolutely confident in seizing China’s vast opportunities. We are expanding addressable market through a multifaceted approach with flexible store formats, strategic franchising and a range of exciting products across price points. With these actions underway, we believe we are well-poised to sustain strong growth and create long-term value for our shareholders.»


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