Yum China Q2 profit yearly up 1.4pc, declares 24 US cents dividend

Yum China (9987), the operator of KFC and Pizza Hut in mainland China, reported a 1.4 percent year-on-year increase in second-quarter net profit to US$215 million (HK$1.68 billion), supported by a double-digit gain in operating profit and improved margins.

Revenue for the three months ended June 30 rose 4 percent from a year earlier to US$2.8 billion. Operating profit jumped 14 percent to US$304 million, marking a second-quarter record for the company.

Digital sales totaled US$2.4 billion, accounting for 94 percent of total sales. Delivery revenue climbed 22 percent year-on-year and contributed about 45 percent of the total.

Yum China added 336 net new stores during the quarter, including 89 franchised outlets, which made up 26 percent of the additions. As of end-June, the company operated 16,978 stores nationwide, including 12,238 KFC and 3,864 Pizza Hut locations.

The board declared a cash dividend of 24 US cents per share.

Looking ahead, the company plans to open a net 1,600 to 1,800 new stores in 2025.

Chief executive Joey Wat Chui-yung said the company is sharpening strategic moat via its membership programs and Super Apps, while also enhancing in-store experiences and driving traffic through delivery platforms.

STAFF REPORTER