Yum China reports $8.42bn total revenues in FY2018

Yum China Holdings has reported total revenues of $8.42bn for the fiscal year ending 31 December 2018 (FY2018), an 8% increase compared from $7.77bn the previous year.

The restaurant company also reported a 21% increase in operating profit to $941m, compared to $778m for the same period in the prior year.

The company’s net income increased by 78% to $708m, whereas the total system sales increased by 5% and same-store sales declined by 1%.

Yum China CEO Joey Wat said: “We achieved a 6% increase in system sales in constant currency during the fourth quarter, marking our ninth consecutive quarter of system sales growth since the spin-off.

“This strong growth was led by accelerated new store openings and a robust performance at KFC, which delivered 3% same-store sales growth and 9% system sales growth during the quarter.

“Although Pizza Hut’s sales remained soft, we are pleased to see same-store traffic growth of 1% and positive trends in customer feedback.”

The chain opened 819 new restaurants and remodelled 931 restaurants during the full year 2018. It currently operates a total of 8,484 across more than 1,200 cities.

In addition, delivery contributed to 19% of company sales, mobile payments accounted for 65% and digital payments 86% during the fourth quarter of 2018. Delivery services increased from 900 cities to 1,118.

Wat added: “In 2018, we aggressively expanded our footprint with 819 new stores across all city tiers, further strengthening our market position and laying a solid foundation for growth.

“While the macro backdrop is relatively soft, with our resilient business model and leadership in digital and delivery, we are confident that we have the right strategy and capabilities to maintain our growth trajectory and capitalize on the long-term potential of the China market.”