Yum China sees Q2 growth despite Delta variant impact
It opened 404 stores during the quarter.
Yum China said profit and sales grew in the second quarter despite the lingering impact of the COVID-19 pandemic.
Revenue at the KFC and Pizza Hut operator in the three months to June increased 29% year-over-year to US$2.45 billion whilst net profit gained 37% to US$132 million.
Yum China opened 404 stores during the quarter, raising its store count to 11,023 as of June 30, 1,069 more compared to the past year.
“Same-store sales recovery to pre-COVID levels was interrupted by the Delta variant outbreak in southern China, which started in late May. Local authorities tightened preventive health measures and social distancing requirements. Many communities were locked down. At the peak of this outbreak, approximately 400 of our restaurants were either temporarily closed or provided delivery and takeaway services only,” it said.
Yum China’s pace of recovery varied by region, with eastern and western China recovering relatively faster. Traffic at the company’s transportation and tourist locations improved from the first quarter but remained well below pre-COVID levels.
The business added it “continues to expect that a full recovery of same-store sales will take time, with the recovery path impacted by regional resurgences and the corresponding public health measures.”
“We will continue to focus on the elements of the business under our control, such as food innovation, compelling value propositions, a focus on customer experience, and operating efficiency, to drive sales and protect margins,” it said.
