Yum China reports $2.12bn in Q2 2019 total revenues

31st July 2019 (Last Updated July 31st, 2019 14:24)

Yum China Holdings has reported total revenues of $2.12bn for the second quarter (Q2) ending 30 June 2019, a 3% increase year-over-year from $2.07bn in the previous year.

Yum China Holdings has reported total revenues of $2.12bn for the second quarter (Q2) ending 30 June 2019, a 3% increase year-over-year from $2.07bn in the previous year.

The restaurant company also reported a 6% year-over-year increase in operating profit to $204m, compared to $193m a year ago.

The company’s net income increased by 24% to $178m from $143m whereas the total system sales increased by 10% and same-store sales increased by 4%.

Yum China CEO Joey Wat said: “We delivered a 10% increase in system sales in constant currency, marking our eleventh consecutive quarter of system sales growth since the spin-off.

“This strong result was driven by solid Q2 sales performance at both core brands with KFC and Pizza Hut delivering 5% and 1% same-store sales growth, respectively, and an ongoing acceleration of new store openings at KFC.

“We are also pleased to have delivered a 14% increase in operating profit in constant currency despite margin pressure from ongoing promotions and chicken and wage inflation.”

During this quarter, the chain opened 178 new restaurants. It currently operates a total of 8,751 stores in more than 1,300 cities.

Additionally, delivery contributed to 20% of company sales, and digital payments accounted for 90%. Delivery services increased from 1,010 cities to 1,190 cities.

Wat concluded: “Looking forward, we expect overall sales growth to moderate as KFC begins to lap several key sales drivers, including successful value campaigns that we initiated in the second half of 2018.

“However, we remain confident that our strong foundation and commitment to innovation throughout our business will power continued growth for Yum China.

“We will continue to create new and exciting menu items, and leverage our leadership in digital, data and delivery to meet the evolving needs of our consumers.”