Yum China opens 422 new stores in Q2

The company aims to open around 1,100 to 1,300 new stores in 2023.

Yum China, the owner of KFC and Pizza Hut, has opened 422 net new stores in the first second quarter of 2023, bringing its total stores to 13,602 as the company’s net income surges 138% year-on-year (YoY) to $197m.

In a statement, Yum China said the company's total revenues were up 25% to $2.65b, with the net income increasing due to the 216% growth in operating profit to $257m on the back of sales leveraging and margin expansion.

“We delivered record second-quarter revenues and profits, despite challenging macro conditions and an uptick of COVID infections during the quarter. When customer demand softened in May, we adjusted nimbly to address consumer needs, captured holiday spending and successfully regained sales momentum,” said CFO Andy Yeung.

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For the entire first half of the year, Yum China CEO Joey Wat said 655 net new stores were opened, keeping them “on track to meet our expansion goal.”

The company retained its target to open around 1,100 to 1,300 new stores this year and make capital expenditures of around $700m to $900m.

“Furthermore, we see abundant white space in China. With a presence in 1,900 cities, we are still tracking over 800 cities without a KFC. Similarly, Pizza Hut has a great potential for expanding its footprint. With our flexible store formats, we continue to expand addressable markets across city tiers,” Wat said.