Investment Rating - The report maintains a rating of "Buy" for Yum China [3]. Core Views - The report expresses confidence in the company's operational management capabilities and its ability to provide high returns to shareholders through dividends and buybacks [2]. Summary by Sections Performance Overview - In Q3 2024, the company reported revenue of $3.071 billion, a year-on-year increase of 5% (4% excluding currency effects). Operating profit reached $371 million, up 15% year-on-year, with an operating margin of 12.1%, an increase of 1.0 percentage points. Net profit was $297 million, reflecting a 22% year-on-year growth (21% excluding currency effects), and EPS increased by 33% year-on-year (32% excluding currency effects) [3]. Store Expansion and Sales - As of Q3 2024, the total number of stores reached 15,861, a 12% increase year-on-year, with KFC at 11,283 stores (14% increase) and Pizza Hut at 3,606 stores (13% increase). The company is accelerating the expansion of franchise stores, expecting the proportion of franchise stores in new KFC openings to rise to 40%-50% and for Pizza Hut to increase to 20%-30% in the coming years [3]. Same-Store Sales - Same-store sales decreased by 3% in Q3, an improvement from a 4% decline in Q2, recovering to 88.2% of 2019 levels (Q2 was 86.7%). KFC's same-store sales fell by 2% (Q2 was -3%), recovering to 88.1% of 2019 levels (Q2 was 87.7%), while Pizza Hut's same-store sales declined by 6% (Q2 was -8%), recovering to 86.4% of 2019 levels (Q2 was 86.3%) [3]. Profitability - The restaurant profit margin in Q3 was 17.0%, unchanged year-on-year (comparable basis +0.5 percentage points). KFC's restaurant profit margin was 18.3%, down 0.3 percentage points year-on-year (comparable basis +0.3 percentage points), while Pizza Hut's margin was 12.8%, up 0.1 percentage points year-on-year (comparable basis +0.6 percentage points). Factors contributing to margin improvement include enhanced operational efficiency, favorable raw material prices, and reduced management expenses [3]. Shareholder Returns - The company plans to increase shareholder returns from $3 billion to $4.5 billion between 2024 and 2026, a 50% increase from the original target. The buyback and dividend target for 2024 remains at $1.5 billion, with $1.24 billion already returned in the first three quarters [3].
百胜中国2024Q3业绩点评：运营效率持续优化，提高股东回报