Yum! China reports 4% system sales growth for third quarter
The results are driven by their digital and delivery platforms.
Yum! China, the operator of Pizza Hut, KFC and Taco Bell, has announced their financial results for the third quarter ended September 30 with a 4% growth in terms of system sales.
Operating profit also saw a 2% from as compared to last year from US$264 million to US$269 million. Their KFC business has generated 6% growth in system sales, while Pizza Hut decreased by 2%.
"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,” Joey Wat, CEO of Yum! China, said.
During the quarter, the company opened 139 KFC outlets and 38 Pizza Hut outlets. They ended the period having a total of 8,313 outlets.
Yum! China mentioned that they are looking to grow further by focusing on their delivery platforms for both online and offline means. The delivery segment contributed 17% to their sales.
Mobile payments also accounted for 64% of sales in the quarter, while digital payments covered 82%.
"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," Wat added.
The company also expressed plans to improve their product offerings, especially in the coffee and breakfast segments.
A few weeks ago, Yum! China announced their brand refresh for pizza hut where they unveiled new store formats, staff uniforms and menu offerings.
They plan to have all of their stores refurbished by 2021.
“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," Wat said.
