YUM CHINA-百胜中国：第四季度同店销售降幅继续收窄，2025年门店扩张稳步提速

Investment Rating - The report maintains an "Outperform" rating for Yum China [6][20]. Core Insights - In Q4 2024, the company reported a revenue of $2.595 billion, a year-on-year increase of 4.1%, and a core operating profit growth of 35% [9][20]. - Same-store sales decline continued to narrow, with a year-on-year decrease of 1% in Q4 2024, improving from a 3% decline in Q3 2024 [11][20]. - The company plans to open 1,600 to 1,800 new stores in 2025, with an increased proportion of franchise stores [19][20]. Financial Performance - For the full year 2024, the company achieved a total revenue of$ 11.303 billion, representing a 3.0% increase year-on-year [9][20]. - Adjusted net profit for 2024 was $911 million, up 10.2% from the previous year, with an EPS of$ 2.33, reflecting an 18% year-on-year growth [9][20]. - The company’s operating profit margin improved to 12.3% in Q4 2024, an increase of 1.5 percentage points year-on-year [15][20]. Store Expansion and Strategy - In Q4 2024, the company added 534 new stores, exceeding its annual target of 1,500 to 1,700 new stores [11][20]. - The franchise ratio for new stores increased, with 30% of KFC and 13% of Pizza Hut new stores being franchises [11][20]. - The company is focusing on expanding its new store formats, including KFC Coffee and Pizza Hut WOW stores, which reached 700 and 200 locations respectively by the end of 2024 [19][20]. Market Trends - Digital order revenue reached $9.6 billion in 2024, accounting for 90% of restaurant revenue, with a stable growth in membership numbers [13][20]. - The company’s takeaway revenue grew by 14% year-on-year, maintaining a double-digit growth trend over the past decade [14][20]. Future Outlook - The company has set a target to return$ 3 billion to shareholders through dividends and share buybacks in 2025-2026 [19][20]. - The projected net profit for 2025 is adjusted to $978 million, with an EPS forecast of$ 2.76 [20].