Yum China recently published its financial report for the fourth quarter and the entire year of 2019.
According to the report, Yum China's total revenue in the fourth quarter of 2019 increased by 8% year-on-year, its system sales increased by 8% year-on-year, its same store sales increased by 2% year-on-year, and its operating profit increased by 16% year-on-year. The company saw a strong growth in the fourth quarter and its total revenue and profit both exceeded expectations of Wall Street analyst.
Meanwhile, Yum China achieved stable performance for the entire year of 2019. The company's total revenue increased by 9% year-on-year, its sales increased by 9% year-on-year, and its same store sales increased by 3% year-on-year. The board of directors announced a cash dividend of USD0.12 per share.
In regards to restaurant development, Yum China opened over 360 new restaurants during the fourth quarter of 2019 and it opened 1006 new restaurants within the year, including 742 new KFC restaurants. By the end of the fourth quarter, Yum China had 9,200 restaurants in total.
Yum China said that the management team was satisfied with the performance and the company mainly attracted consumers with four factors: delicious food, cost-effective products, digital enabled customer experience, and convenient purchase methods like delivery and mobile end order.
By December 31, 2019, KFC had over 215 million members, a year-on-year increase of 35%; and Pizza Hut had over 70 million members, a year-on-year increase of 33%. Its meal delivery service achieved a fast growth and had covered 1,249 cities. Its meal delivery business accounted for 23% of its total sales.
For the year of 2020, Yum China will continue to enhance its investment in IT infrastructure and supply chain.