For the quarter which ended on 30 June 2023, the company’s total revenues were $2.65bn, an increase of 25% compared to $2.13bn in the same period a year ago.
Yum China’s adjusted net income for the quarter was $199m, up 137% from $84m in the second quarter of 2022.
The company said that its operating profit for the period was $257m compared to $81m a year ago. The surge in operating profit was primarily driven by sales leveraging and margin expansion.
During the quarter, the company’s total system sales surged 32% year-over-year, with KFC and Pizza Hut delivering a growth of 32% and 30%, respectively.
Yum China noted that the growth was due to same-store sales, new unit contribution and the lapping of temporary store closures a year ago.
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Same-store sales rose by 15% in the latest quarter, with KFC reporting an increase of 15% and Pizza Hut posting 13% growth.
In the latest quarter, the company’s restaurant margin was 16.1% against 12.1% in 2022.
During this quarter, Yum China Holdings’ diluted earnings per share (EPS) grew to $0.47 from $0.20 a year earlier.
It opened a total of 422 net new stores during the quarter, thereby increasing its total store count to 13,602 as of 30 June 2023.
Yum China CEO Joey Wat said: “We achieved outstanding results, delivering substantial growth in the top-line and bottom-line in the second quarter, thanks to our teams’ dedication and creativity.
“This once again demonstrates our anti-fragile business model and ability to capture opportunities in good times and stay resilient in bad times. Our innovative products and compelling value captured customer demand and drove double-digit same-store sales growth.
“We accelerated the pace of new store openings in the second quarter and celebrated two milestones. Pizza Hut surpassed 3,000 stores in China and KFC exceeded 500 stores in Shanghai alone.”