Consumer Staples Author：Yue Liu Editor：Luke Sheehan Oct 29, 2020 12:30 PM (GMT+8)

Yum China performed well in the third quarter as the catering industry was still working its way through a trough.

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On October 29, Yum China announced its first financial report after its dual-listing in Hong Kong. As of September 30, 2020, the company achieved total revenue of USD 2.35 billion, an increase of 1% from USD 2.32 billion in the same period last year. Net profit was USD 439 million, an increase of 96% YoY.

Same-store sales recovered to 90% of the same period last year in the second quarter and 94% in the third quarter. Among them, KFC and Pizza Hut's same-store sales recovered to 94% and 93%, respectively. KFC recovered to 97% in terms of operating profit, while Pizza Hut's operating profit rose 62% year-on-year.

Digitization and food delivery business are the main drivers of Yum China's growth. The company's financial report shows that in the third quarter, food delivery revenue accounted for 28% of KFC and Pizza Hut's revenue, increasing 8% year-on-year. Digital orders (including food delivery orders, mobile phone orders and self-service ordering machine orders) accounted for 78% of revenue, which was higher than the level before the epidemic.

Non-dining catering business sales currently account for 40% of Pizza Hut’s revenue, and the restaurant's number of digital members has exceeded 80 million. Digital orders accounted for 65%, an increase of 34% year-on-year; food delivery revenue accounted for 32%, growing 7% year-on-year.

The company opened 312 new stores in the third quarter. As of September 30, 2020, the total number of stores reached 10,150. The company has also updated its store opening target and expects to open more than 900 stores in 2020.