Core Viewpoint - The company reported a modest growth in revenue and net profit for Q2 2025, driven by improved operational efficiency and a positive trend in same-store sales after a challenging period [1][2][3]. Financial Performance - In Q2 2025, the company achieved revenue of $2.787 billion, a year-on-year increase of 4% [1] - Net profit for the same period was $215 million, reflecting a 1% year-on-year growth [1] - The operating profit margin and net profit margin were 10.9% and 7.7%, showing a year-on-year increase of 1.0 percentage points and a slight decline of 0.2 percentage points, respectively [1] Same-Store Sales and Transaction Volume - The company recorded a 1% positive growth in same-store sales for Q2 2025, with same-store transaction volume increasing by 2% [2] - The average transaction value per store decreased by 1%, primarily due to an increase in small orders driven by delivery subsidies, particularly in the beverage category [2] - This marks the first positive same-store sales growth since 2024, following a period of negative growth [2] Operational Efficiency - The company experienced a dual increase in operating profit margin and restaurant profit margin, with the latter reaching 16.1%, up by 0.6 percentage points year-on-year [2] - KFC's restaurant profit margin was 16.9%, up by 0.7 percentage points, benefiting from improved supply chain efficiency [2] - Pizza Hut's restaurant profit margin was 13.3%, with a 0.1 percentage point increase, marking five consecutive quarters of year-on-year profit margin improvement [2] Store Expansion and Capital Expenditure - The company maintains its guidance for 1,600 to 1,800 net new stores for the year, while lowering its capital expenditure guidance [3] - The proportion of franchise stores among new openings for KFC and Pizza Hut is expected to reach 40%-50% and 20%-30%, respectively [3] - Single-store investment costs have decreased, with KFC's single-store investment down to $1.4 million and Pizza Hut's to $1.1 million, which helps free up cash flow and expand franchise opportunities [3] Shareholder Returns - The company plans to return at least $1.2 billion to shareholders in 2025, with $536 million already returned in the first half of the year [3] - This includes $356 million in share buybacks and $180 million in cash dividends [3] - The company has $936 million remaining in buyback authorization as of June 30, 2025, and aims for a total of $3 billion in buybacks and dividends over the next two years [3] Profit Forecast - The company forecasts net profits of $934 million, $1.013 billion, and $1.138 billion for 2025-2027, with year-on-year growth rates of 2.5%, 8.5%, and 12.3%, respectively [3] - The current stock price corresponds to price-to-earnings ratios of 19, 16, and 14 for the respective years [3]
百胜中国(09987.HK)：同店转正 运营提升 经营利润改善 开店行稳致远