YUM CHINA-百胜中国(09987) - 2023 Q3 - 季度业绩

Financial Performance - Total revenue for Q3 2023 was $2.91 billion, an increase of 9% year-over-year, or 15% when adjusted for fixed exchange rates[3]. - Operating profit reached$ 323 million, a 2% increase from $316 million in the same quarter last year, or a 9% increase when adjusted for fixed exchange rates[5]. - Net profit for Q3 2023 was$ 244 million, an 18% increase compared to $206 million in the same quarter last year[5]. - Adjusted operating profit reached a record high of$ 327 million, up 3% from $318 million in the same quarter last year[5]. - Adjusted net profit was$ 248 million, a 19% increase from $208 million in the same quarter last year[5]. - Basic earnings per share for Q3 2023 was$ 0.59, compared to $0.49 in Q3 2022, a 20.4% increase[29]. - The effective tax rate improved to 27.5% from 29.9% in the previous year, a decrease of 2.4 percentage points[22]. - The actual tax rate for Q3 2023 was 27.5%, down from 29.9% in Q3 2022, showing a reduction of 8.0%[29]. - The adjusted actual tax rate for the nine months ended September 30, 2023, was 27.0%, compared to 29.9% in the same period of 2022, reflecting a decrease of 9.7%[29]. Sales and Store Growth - System sales increased by 15% year-over-year, with KFC and Pizza Hut growing by 15% and 13% respectively, driven by new store contributions and same-store sales growth[3]. - The company added a net of 500 new stores in Q3 2023, bringing the total number of stores to 14,102 as of September 30, 2023[3]. - The company opened a net of 500 new stores in Q3 2023, bringing the total net new stores for the first three quarters to 1,155, on track to meet the annual target of 1,400 to 1,600 new stores[6][10]. - As of September 30, 2023, KFC had a total of 8,915 self-operated restaurants, an increase of 868 from the previous year, while Pizza Hut had 3,047 self-operated restaurants, up by 366[32]. - The company opened 999 new restaurants across all brands, while closing 176, resulting in a net increase of 823 restaurants[32]. Profit Margins - The restaurant profit margin was 17.0%, down from 18.8% in the same quarter last year, primarily due to previous cost control measures[3]. - The restaurant profit margin for Q3 2023 was 17.0%, down from 18.8% in the same period last year, primarily due to increased promotional costs and rising wage costs[12][13]. - KFC's restaurant profit margin decreased to 18.6% from 20.6% year-over-year[23]. - Pizza Hut's restaurant profit margin was 12.7%, down from 13.4% in the same quarter of 2022[24]. - The restaurant profit margin for KFC was 19.4%, while Pizza Hut's was 13.1%, leading to an overall restaurant profit margin of 17.9%[40]. Digital and Membership Initiatives - The membership program reached over 460 million members, with member sales accounting for approximately 65% of system sales in Q3 2023[8][9]. - Digital orders, including takeout and mobile orders, represented about 89% of restaurant revenue in Q3 2023[8][9]. - Takeout sales accounted for approximately 35% of restaurant revenue in Q3 2023, a decrease of three percentage points from the previous year[8][9]. - The company has a strong digital capability and membership program to enhance customer engagement and service[21]. Future Outlook and Strategic Plans - The company aims to reach 20,000 stores by 2026 and expects high single to double-digit annual compound growth in system sales and operating profit from 2024 to 2026[15][14]. - Future outlook includes expectations for growth driven by marketing activities and product innovations, although specific numerical forecasts are not guaranteed[20]. - The company plans to maintain capital expenditures between$ 700 million and $900 million for 2023[14]. - The company plans to return$ 6 billion to $8 billion to shareholders through dividends and share repurchases over the year, having already returned$ 211 million in Q3 2023[7][6]. Costs and Expenses - Total costs and expenses for the quarter were $2,591 million, an increase of 9% compared to$ 2,369 million in the same quarter of 2022[22]. - The company incurred total costs and expenses of $2,591 million, leading to a net operating loss of$ 59 million[35]. - KFC's total costs and expenses for the quarter were $1,844 million, an increase of 9% from$ 1,689 million in the same quarter of 2022[23]. - Pizza Hut's total costs and expenses for the quarter were $552 million, an increase of 8% from$ 512 million in the same quarter of 2022[24]. Cash Flow and Assets - The company reported a significant increase in cash generated from operating activities, totaling $1,334 million for the nine months ended September 30, 2023, compared to$ 1,329 million in the same period of 2022[26]. - Total assets as of September 30, 2023, amounted to $12,070 million, compared to$ 11,826 million as of December 31, 2022, reflecting a growth of about 2%[25]. - Cash and cash equivalents at the end of the period were $1,131 million, slightly up from$ 1,130 million at the end of 2022[26]. - The total liabilities increased to $4,811 million as of September 30, 2023, from$ 4,666 million at the end of 2022, marking an increase of approximately 3%[25]. - The company’s total equity increased to $7,246 million as of September 30, 2023, from$ 7,148 million at the end of 2022, reflecting a growth of approximately 1.4%[25]. Investor Relations and Communication - The upcoming earnings conference call is scheduled for October 31, 2023, at 8 PM ET, with a replay available until November 8, 2023[18]. - Investors can access important information through the company's investor relations website[19]. - The company emphasizes the importance of non-GAAP financial measures, excluding special items from reported GAAP results[16]. - The company believes that presenting adjusted metrics provides investors with additional information for comparing past and current performance[35]. - The company emphasizes that adjusted metrics are not intended to replace financial performance presented in accordance with U.S. GAAP[35].