Yum China sales surged 21% in FY 2023
Sales were boosted by new restaurant openings.
Yum China saw its total system sales grow by 21% in the financial year 2023.
According to the group’s earnings report, the growth was mainly attributable to new restaurant openings, 7% same-store sales growth and lapping temporary closures from the pandemic in the prior year.
Yum China increased its restaurant count by 13%, or 1,697 net new stores, exceeding its full-year target. Total revenues went up 15% to $10.98b and operating profit grew 76% to $1.1b.
Yum China CEO Joey Wat said the group is currently only serving one-third of China’s population. They plan to be able to reach half by 2026 by opening more restaurants in lower-tier cities to capture the demand from long-term consumption upgrades.
“We are also expanding our addressable market and capturing incremental sales across city tiers with innovative products, engaging campaigns and a wider range of price points. Leveraging our distinctive strengths, including brands deeply ingrained in China, remarkable agility and robust operational execution, we are well-positioned to achieve our growth targets for 2024-2026 and deliver excellent returns to our shareholders through increased cash dividends and stepped-up share buybacks,” Wat said.
Yum China’s board declared a 23% increase in cash dividend to $0.16 per share on Yum China's common stock, payable on March 26, 2024 to shareholders of record as of the close of business on March 5, 2024