Financial Performance - Total revenue reached a record high of $2.68 billion, a year-over-year increase of 1%[2] - Same-store sales volume grew by 4%, achieving 96% of last year's level[3] - Operating profit increased by 4% to $266 million, marking a second-quarter record[3] - Core operating profit rose by 12% to $275 million[3] - Digital order revenue amounted to $2.2 billion, accounting for approximately 90% of restaurant revenue[3] - Shareholder returns approached $1 billion year-to-date, exceeding the total for 2023[3] - The restaurant profit margin was stable at 15.5%, with operational efficiency improvements[3] - Total revenue for the six months ended June 30, 2024, was $5,637 million, a 1% increase compared to $5,571 million for the same period in 2023[18] - Company restaurant revenue for the quarter was $2,528 million, slightly up from $2,517 million, with a year-to-date total of $5,322 million compared to $5,289 million[18] - Net profit for the quarter was $228 million, representing a 7% increase from $214 million in the same quarter last year[18] - The effective tax rate for the quarter was 25.2%, up from 24.7% in the same quarter last year[18] - Basic earnings per share for the quarter were $0.55, compared to $0.47 in the same quarter last year, reflecting an increase of 17%[18] - The total costs and expenses for the quarter were $2,413 million, a slight increase from $2,397 million in the same quarter last year[18] - The company reported a restaurant profit margin of 15.5%, down from 16.1% in the same quarter last year[18] - KFC's total revenue for the quarter ended June 30, 2024, was $2,014 million, a 2% increase from $1,984 million in the same quarter of 2023[19] - Pizza Hut's total revenue for the quarter ended June 30, 2024, was $7 million, a 36% increase from $5 million in the same quarter of 2023[20] - KFC's operating profit for the six months ended June 30, 2024, was $636 million, down 8% from $693 million in the same period of 2023[19] - Pizza Hut's operating profit for the six months ended June 30, 2024, was $87 million, a decrease of 4% from $90 million in the same period of 2023[20] - KFC's restaurant profit margin decreased to 16.2% from 17.3% year-over-year[19] - Pizza Hut's restaurant profit margin improved to 13.2% from 12.4% year-over-year[20] Store Expansion and Operations - The total number of stores reached 15,423, with a net addition of 401 stores in the quarter[3] - The company aims to add approximately 1,500 to 1,700 new stores in fiscal year 2024[11] - System sales for KFC increased by 5% year-over-year, driven by an 8% contribution from net new store openings[6] - KFC's operating profit reached $264 million, with core operating profit at $273 million, reflecting a 4% year-over-year growth[7] - Pizza Hut's system sales grew by 1% year-over-year, supported by an 8% increase in net new store openings[8] - Yum China operates over 15,000 restaurants across more than 2,100 cities in China, employing approximately 400,000 staff[16] - The number of KFC restaurants increased to 9,740 as of June 30, 2024, from 9,237 at the end of 2023, representing a growth of 5.43%[24] - The number of Pizza Hut restaurants increased to 3,504 as of June 30, 2024, from 3,312 at the end of 2023, indicating a growth of 5.79%[24] Shareholder Returns and Financial Strategy - The company repurchased approximately 5.1 million shares for a total of $187 million in the second quarter[10] - The board declared a cash dividend of $0.16 per share, payable on September 17, 2024[10] - The company plans to return a record $1.5 billion to shareholders through dividends and stock buybacks[11] - The company repurchased ordinary shares amounting to $869 million during the financing activities for the six months ended June 30, 2024[22] Cost Management and Efficiency - The company is committed to maintaining cost control and managing expenses effectively in a changing economic environment[15] - KFC's food and packaging costs increased by 4% to $626 million compared to $602 million in the same quarter of 2023[19] - KFC's employee benefits costs were $513 million, up 3% from $498 million in the same quarter of 2023[19] - The company provides non-GAAP financial metrics including adjusted operating profit, adjusted net profit, adjusted earnings per share, adjusted effective tax rate, and adjusted EBITDA[25] - The company believes that presenting these non-GAAP metrics provides additional information for investors to compare past and current performance[25] Future Outlook and Innovation - The company plans to leverage automation and AI to enhance operational efficiency and expand market share[4] - Future performance outlook includes expectations for continued growth and innovation in marketing and product development[15] - The company is focused on expanding its digital capabilities and membership programs to enhance customer engagement[16] - The company plans to continue expanding its market presence and investing in new product development[18] - The company is focusing on enhancing operational efficiency and exploring potential acquisitions to strengthen its market position[36] Food Safety and Quality Control - The company emphasizes the importance of food safety and quality control systems in its operations[15] Financial Metrics and Definitions - Restaurant profit is defined as total restaurant revenue minus direct costs associated with generating that revenue, including food and packaging costs, salaries and employee benefits, rent, depreciation, advertising, and other operating expenses[25] - The restaurant profit margin is calculated as restaurant profit divided by total restaurant revenue, providing insights into the profitability of self-operated restaurants[25] - Core operating profit is adjusted for special items and further excludes items affecting comparability and foreign currency translation effects[26] - The core operating profit margin is defined as core operating profit divided by total revenue excluding foreign currency translation effects[26] - Special items excluded from the adjusted metrics include temporary subsidies from owners and government agencies, VAT adjustments due to tax policy changes, and amortization of reacquired franchise rights recognized during acquisitions[26]
百胜中国(09987) - 2024 Q2 - 季度业绩