Investment Rating - The report maintains a rating of "Buy" for Yum China (9987) [2][3] Core Views - Despite a slight decline in same-store sales, the company's cost control exceeded expectations, indicating strong operational management capabilities. The company is expected to provide high returns to shareholders through dividends and buybacks [3] Summary by Sections Financial Performance - For Q2 2024, total revenue reached 266 million, up 4% (7% excluding currency effects), and net profit was 266 million, up 3% (6% excluding currency effects) [3] - The company plans to return 2.16 (-0.08), 2.71 (-0.01), representing year-on-year growth of 8%, 14%, and 10% respectively [3] Store Expansion and Sales - As of H1 2024, the total number of stores reached 15,423, a 13% year-on-year increase. In Q2 2024, 401 new stores were added, with 99 being franchise stores, accounting for 25% of the new openings. KFC added 328 new stores, totaling 10,931, a 14% year-on-year increase, while Pizza Hut added 79 new stores, totaling 3,504, also a 14% increase [3] - Same-store sales experienced a year-on-year decline of 4% in Q2 2024, with KFC down 3% and Pizza Hut down 8%. This performance is at 86.7% of the same period in 2019 [3] Operational Efficiency - The restaurant profit margin for Q2 2024 was 15.5%, up 0.6 percentage points year-on-year. KFC's profit margin was 16.2%, down 1.1 percentage points, while Pizza Hut's profit margin was 13.2%, up 0.8 percentage points. The improvement in Pizza Hut's margin was primarily due to enhanced operational efficiency [3] - Menu innovations and streamlined processes have contributed to improved operational efficiency, with new products like the Pizza Dough Burger performing well. The company is also piloting new store formats to enhance customer experience [3]
百胜中国2024Q2业绩点评：开店灵活下沉，费用管控超预期