Investment Rating - The report maintains a "Buy" rating for Yum China [4] Core Views - In Q1 2025, same-store sales remained flat year-on-year, which is an improvement compared to the declining trend in the previous four quarters. This performance aligns with market expectations [4] - The restaurant profit margin expanded by 100 basis points year-on-year, and the operating profit margin increased by 80 basis points, slightly exceeding market expectations and management's guidance for the year [4] - The management attributes the company's ability to achieve stable performance in a complex consumer environment to strong management capabilities and flexible market responsiveness, allowing for quick operational adjustments [4] - The management has maintained its full-year guidance for 2025, expecting a low single-digit year-on-year growth in system-wide revenue and stable or slightly improved core operating profit margin [4] Financial Summary - For 2025, the projected revenue is 11,720 million RMB, reflecting a year-on-year growth of 3.7% [9] - The projected net profit attributable to shareholders for 2025 is 924 million RMB, with a year-on-year increase of 1.4% [9] - The price-to-earnings (PE) ratio for Hong Kong shares is projected at 18.9x for 2025, while for US shares, it is 19.1x [9] - The expected return on equity (ROE) for 2025 is 17.0% [9] Brand Performance - KFC's restaurant profit margin remained stable year-on-year, while Pizza Hut's restaurant profit margin showed slight improvement [4] - Pizza Hut's average ticket price decreased by 14% year-on-year in Q1 2025, but same-store traffic increased significantly by 17%, marking the fastest growth since Q3 2023 [4] - Kcoffee, which reached 1,000 stores by the end of Q1 2025, continues to grow strongly, with sales and cup volume increasing by 20% year-on-year [4]
百胜中国：1Q25同店趋势继续改善，利润率表现略好于预期-20250502