Financial Performance - Total revenue grew by 1% to $2.96 billion; excluding foreign currency effects, revenue would have increased by 7%[3] - Operating profit reached $374 million, with a core operating profit of $396 million, reflecting a 1% increase[3] - Operating profit for the quarter reached $372 million, with core operating profit at $392 million[7] - Operating profit for Pizza Hut was $47 million, with core operating profit at $50 million[9] - Total revenue for Q1 2024 reached $2,958 million, a 1% increase from $2,917 million in Q1 2023[16] - The net profit attributable to Yum China Holdings, Inc. was $287 million, down 1% from $289 million in the previous year[16] - Basic earnings per share (EPS) for the quarter was $0.72, an increase from $0.69 in the same quarter of 2023[26] - The diluted EPS for the quarter was $0.71, up from $0.69 in the same quarter of 2023[26] - The adjusted EBITDA for the quarter was $495 million, down from $539 million in the same quarter of 2023[26] - The effective tax rate improved to 26.9%, a decrease of 1.6 percentage points from 28.5%[16] Sales and Revenue Growth - System sales increased by 6% year-over-year, driven by an 8% contribution from net new store openings[3] - Same-store sales were at 97% of last year's level, indicating strong performance despite challenges[3] - Digital sales amounted to $2.5 billion, accounting for 89% of restaurant revenue[3] - KFC and Pizza Hut membership reached 485 million, with member sales contributing 65% to system sales[3] - Takeout sales grew by 14%, accounting for approximately 39% of KFC restaurant revenue, while non-dine-in business represented about 68% of total revenue[7] - KFC restaurant revenue was $2,193 million, up 1% from $2,166 million in the same quarter last year[17] - Total revenue for the company reached $2,958 million, with KFC contributing $2,230 million and Pizza Hut contributing $595 million[30] Store Expansion - The total number of stores reached 15,022, with a net addition of 378 stores, marking a record high for the first quarter[3] - KFC added 307 net new stores this quarter, more than double the number from the same period last year, with 58 of those being franchise stores[7] - Pizza Hut added 113 net new stores this quarter, a 40% increase compared to 80 net new stores in the same period last year[9] - The company plans to add approximately 1,500 to 1,700 new stores in fiscal year 2024[10] - As of December 31, 2023, the total number of KFC restaurants increased to 10,296, with 303 new openings and 59 closures, projecting a total of 10,603 by March 31, 2024[22] - The total number of Pizza Hut restaurants reached 3,312 as of December 31, 2023, with 140 new openings and 27 closures, expected to grow to 3,425 by March 31, 2024[23] - The total number of franchised restaurants for KFC reached 1,059, with 63 new openings and 4 closures, projected to increase to 1,117 by March 31, 2024[22] Profit Margins and Costs - Operating profit margin was 12.6%, impacted by a decrease in restaurant profit margin to 17.6%[3] - Restaurant profit margin was 19.3%, a decrease of 190 basis points compared to the same period last year, primarily due to increased labor costs and the introduction of high-value products[7] - Restaurant profit margin for Pizza Hut was 12.5%, down 100 basis points year-over-year, influenced by increased labor costs and the introduction of high-value products[9] - The restaurant profit margin for KFC was 19.3%, down 2.9 percentage points from 22.2% in Q1 2023[17] - Food and packaging costs represented 32.1% of total revenue, an increase of 2.0 percentage points from 30.1%[16] - Employee benefits accounted for 25.4% of total revenue, up 0.8 percentage points from 24.6%[16] - The company's restaurant profit margin decreased to 12.5%, down from 14.2% year-over-year, a decline of 1.7 percentage points[18] Shareholder Returns - Shareholder cash return reached $745 million, setting a new record for a single quarter[3] - The company aims to return approximately $1.5 billion to shareholders through quarterly cash dividends and stock buybacks[10] Strategic Initiatives - The company plans to expand through flexible store formats and strategic partnerships to capture market opportunities[4] - The company is focusing on expanding its market presence and enhancing its product offerings through new technology and product development initiatives[36] - The company plans to continue its strategy of central procurement to optimize costs and improve profitability across its franchise operations[36] Non-GAAP Measures and Adjustments - Adjusted EBITDA is calculated by excluding special items and includes net profit, taxes, interest income, investment gains or losses, depreciation, and impairment charges[24] - Core operating profit is defined as adjusted operating profit further excluding items affecting comparability and foreign currency translation impacts, providing a clearer view of ongoing operational performance[25] - The company emphasizes that non-GAAP measures provide additional insights for investors to compare past and current performance, despite not replacing GAAP financial metrics[24]
百胜中国(09987) - 2024 Q1 - 季度业绩