Core Viewpoint - The company reported its Q2 2025 financial performance, showing revenue growth and improved profitability metrics, indicating a positive trend in sales and operational efficiency [1][2][3]. Financial Performance - In Q2 2025, the company achieved revenue of $2.787 billion, a year-on-year increase of 4%, with operating profit of $304 million, up 14% year-on-year, and net profit attributable to shareholders of $215 million, reflecting a profit margin of 10.9%, an increase of 1 percentage point year-on-year [1]. - For the first half of 2025, total revenue reached $5.768 billion, a 2% increase year-on-year, with same-store sales showing a positive growth for the first time [1][2]. Store Expansion - The company opened 336 new stores in Q2 2025, contributing 4% to revenue growth, with a total of 16,978 stores by the end of H1 2025 [2]. - The company plans to add 1,600 to 1,800 new stores in 2025, with capital expenditures estimated at $600 to $700 million, aiming for a store count of 20,000 by 2026 [5][6]. Same-Store Sales - Same-store sales increased by 1% year-on-year in Q2 2025, marking a recovery after several quarters of decline [2]. - The same-store transaction volume grew by 2% year-on-year, achieving growth for the tenth consecutive quarter, although the average transaction value continued to decline [2][3]. Profitability Metrics - The restaurant profit margin reached 16.1% in Q2 2025, up 60 basis points year-on-year, while the operating profit margin was 10.9%, an increase of 100 basis points, attributed to lower raw material costs and improved operational efficiency [2][4]. - The company reported a restaurant profit margin of 13.3% for Pizza Hut, with an operating profit margin of 8.3%, both showing year-on-year improvements [4]. Delivery and Membership Growth - Delivery sales grew by 22% year-on-year, accounting for 45% of total restaurant revenue, with membership numbers exceeding 560 million, a 13% increase year-on-year [3]. - The company’s delivery sales for KFC increased by 25%, while Pizza Hut's delivery sales rose by 15%, indicating strong performance in the delivery segment [4]. Shareholder Returns - In Q2 2025, the company returned $274 million to shareholders, including $184 million in stock buybacks and $90 million in cash dividends, with an expected total return of $3 billion to shareholders from 2025 to 2026 [6]. Future Outlook - The company aims to accelerate store expansion and innovation to drive growth, with plans to increase the proportion of franchise stores in its new openings [5][6]. - The company forecasts revenue growth rates of 4.6%, 6.3%, and 5.7% for 2025 to 2027, with net profit growth rates of 2.2%, 11.1%, and 12.4% respectively [6].
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