(Yicai Global) July 30 -- Despite posting a significant drop in profits and earnings in the second quarter, China’s largest restaurant company Yum China Holdings is confident that it is getting back on track as 99 percent of its outlets are operating once more after the Covid-19 shutdowns..
Net profit at Yum China, which runs the Kentucky Fried Chicken, Pizza Hut and Taco Bell brands in China, dropped 26 percent in the second quarter from the same period last year to USD132 million, according to the Shanghai-based firm’s earnings report released today. Revenue dropped 11 percent to USD1.9 billion.
Eighty percent of all orders were placed online in the second quarter and take-outs made up over half of the company's sales, Yum China said. KFC sales fell 6 percent while Pizza Hut takings were down 12 percent, the report said.
This is still a dramatic improvement from the 68 percent plunge in net profit and 24 percent drop in revenue reported for the first quarter.
Yum China operates stores in more than 1,400 cities nationwide. Recovery across the different regions, time periods and market segments is uneven, the firm said.
Business began to get back to normal in April and May, but performance last month was hampered by new clusters of Covid-19 that greatly reduced visitor traffic to scenic spots and transportation hubs, it added.
The firm intends to stick to its plan of opening up to 850 new stores this year. Between April and June it opened 169 more stores. Today Yum China opened the doors to its 10,000th outlet in the tourist destination of Boao, southern Hainan province, it said.
Editor: Kim Taylor