Record Store Openings Drive Yum China Sales Growth
Yum China grew its sales by 19 per cent last year to US$9.85bn despite multiple waves of Covid Delta outbreaks in the fourth quarter.
The company closed the December financial year with net income up 26 per cent to $990M. Yum China’s growth followed a record rate of net new store openings last year, adding 1,282 to take its network to 11,788. On a same-store basis, sales rose by just one per cent.
By channel, Pizza Hut sales rose by 14 per cent and KFC sales rose by eight per cent, but on a same-store basis, they rose by seven per cent in Pizza Hut and fell by three per cent at KFC. The company said “fluid” Covid-19 conditions caused “significant volatilities” during the fourth quarter, with same-store sales beginning to recover in early October, then falling again the following month.
Subsequent to year-end, same-store sales in January have improved modestly, the company said. “But compared with the comparable Chinese New Year holiday period in 2021, same-store sales were still down year on year. The situation remains volatile,” said the company in a statement.