KFC, Pizza Hut sales in China down 4% in 2020
Yum China said performance was impacted by regional resurgences of COVID-19.
KFC and Pizza Hut saw same-stores decline in China in 2020, attributed to regional outbreaks of COVID-19.
Same-store sales declined 9% year over year, with declines of 8% at KFC and 14% at Pizza Hut.
Total revenues declined 6% year over year to $8.26 billion from $8.78 billion whilst total system sales declined 5% year over year, with declines of 5% at KFC and 15% at Pizza Hut.
Restaurant margin was 14.9%, compared with 16.0% in the prior year, primarily attributed to lower commodity prices, relief provided by landlords and government agencies, and other store cost savings.
Yum China opened 1,165 new stores during the year, bringing total store count to 10,506 across more than 1,500 cities.
The company expects to approximately open 1,000 new stores and make capital expenditures of approximately $600 million.
“Our confidence in the long-term potential of China is unshaken. We are focused on growing our store footprint and developing our emerging brands. We will also step up investment in digitization and infrastructure to create an even stronger foundation to accelerate expansion,” Yum China CEO Joey Wat said in a media release.
