LBdolphin
Jul 30, 12:43 PM
$YUMC Yum China had a solid quarter: revenue and profit both slightly ahead of expectations, and 560 net new stores, a second-quarter record.
The pattern is more visits, smaller orders. Transactions rose 5% for a 14th straight quarter while average spend fell, leaving same-store sales at +1%. Delivery grew 26% to 54% of sales, driving growth but holding restaurant margin at 16.1% through rider costs.
KFC gave up 3% of average spend to small KCOFFEE and KPRO orders yet still lifted margin to 17.1%.
Pizza Hut turned same-store positive on 13% more transactions, but margin slipped to 12.9%.
Smaller brands barely grew, so new categories now sit inside the two main chains. All 2026 targets unchanged.
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