Yum China Holdings reports comparable sales fell 7% in Q3. Comparable sales were down 8% for the KFC chain and 5% for Pizza Hut.
Delivery contributed to ~34% of KFC and Pizza Hut’s sales in Q3. Digital orders, including delivery, mobile orders and kiosk orders, accounted for ~87% of KFC and Pizza Hut’s sales during the quarter.
Restaurant margin was 12.2% of sales vs. 18.6% last year. Adjusted operating profit fell 48% Y/Y to $168M.
CEO update: “We expect that COVID-19, especially the Delta variant outbreaks, will continue to affect consumer behavior and impact our same-store sales recovery… We are focused on driving sales by leveraging our member base and digital channels, launching great food for both dine-in and home consumption and enhancing our hybrid delivery model.”
Yum China opened 524 stores during the quarter and plans to open approximately 5K new Lavazza stores by 2025.
Shares of Yum China are flat in AH trading at $125.79 following the mixed earnings report.
Source: Yum China