Yum China, which operates the KFC and Pizza Hut chains in China, logged a 9 per cent year-on-year increase in revenues to US$2.91 billion for the third quarter ended September 30.
The company’s system sales were up 15 per cent, with both KFC and Pizza Hut reporting increases of 15 per cent and 13 per cent, respectively. The growth was mainly attributable to the new unit contribution, same-store sales and lapping of temporary closures in the prior year.
Operating profit increased 2 per cent to $323 million, primarily driven by sales leveraging.
The firm opened 500 net new stores during the quarter, raising the store count to 14,102 as of September 30.
“We delivered a record third quarter in total revenues, adjusted operating profit and net new store openings,” said Joey Wat, CEO of Yum China. “Our robust supply chain, industry-leading digital ecosystem and strong innovation capabilities have enabled us to stay agile in evolving market conditions.”
Andy Yeung, CFO of Yum China, added the company achieved “robust results” despite macroeconomic headwinds, with same-store sales growth at approximately 90 per cent of the 2019 level.
For the full year, the company expects capital expenditures to be in the range of approximately $700 million to $900 million.
It aims to open 1400 to 1600 net new stores for 2023 and increase the total store count to 20,000 by 2026.
Aside from KFC and Pizza Hut, Yum China also operates Taco Bell, Lavazza, Little Sheep and Huang Ji Huang stores in the country.