Yum China Holdings has reported total revenues of $2.22bn in the third quarter (Q3) ending 30 September 2018, a 4% increase compared to the previous year.
The restaurant company also reported a 2% increase in operating profit to $269m, compared to $264m for the same period in the previous year.
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The company’s net income increased by 15% to $203m, whereas the total system sales increased by 4% and same-store sales declined by 1%.
Yum China CEO Joey Wat said: “We recorded 4% system sales growth during the third quarter, excluding foreign exchange impact, as we expanded our portfolio and delivered more value-oriented offerings to address growing competition and softer trading conditions.
“KFC continued to perform well, posting 1% same-store sales growth during the quarter, on top of a 10% growth in the same period last year. Pizza Hut recorded a 5% decline in same-store sales during the quarter, as healthy growth in delivery was offset by lower dine-in traffic.
“We made further progress on the revitalisation programme as we launched a refreshed brand identity, improved our value proposition, expanded our digital capabilities to include tableside ordering via mobile, and generated greater delivery traffic through our own channels.”
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By GlobalDataDuring this quarter, the chain opened 195 new locations and remodelled 209 restaurants. It currently operates a total of 8,313 stores in more than 1,200 cities.
Additionally, delivery contributed to 17% of company sales, mobile payments accounted for 64% and digital payments 82%. Delivery services increased from 864 cities to 1,063.
Wat added: “Looking ahead, we are excited by the opportunity to grow our portfolio in China’s western quick service restaurant and casual dining markets.
“We will continue to add a range of store formats across the spectrum of low and high tier cities to drive growth.
“We will also build out our digital and delivery eco-system so that we can better serve our customers and create a seamless online to offline experience.”
