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Most Yum payments via mobile now

By Maria SantosChina
1 min read
NFC payments Visa Samsung Dutch Leiden
NFC payments Visa Samsung Dutch Leiden
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Mobile payments accounted for 56 per cent of Yum China Holdings first-quarter sales, up from 31 per cent 12 months earlier.

Unaudited results for the period show the fast-food giant’s total revenues grew 15 per cent year over year to US$2.2 billion (6 per cent if foreign currency translation excluded). Total system sales grew 6 per cent, with 9 per cent growth at KFC partially offset by 1 per cent decline at Pizza Hut, excluding foreign exchange.

Same-store sales grew 3 per cent, with an increase of 5 per cent at KFC partially offset by a 5 per cent drop at Pizza Hut, excluding foreign exchange.

Restaurant margin was 17.9 per cent, compared with 20.4 per cent in the previous year.

Operating profit grew 33 per cent to $395 million, while net income grew 41 per cent to $288 million.

During the quarter, the company completed the acquisition of an extra 36 per cent equity interest in an unconsolidated affiliate, Wuxi KFC, for cash consideration of about $98 million, taking its stake to 83 per cent.

Also during the quarter the group opened 203 restaurants, taking its total store count to 8112 across more than 1200 cities.

Online delivery contributed 16 per cent to company sales, up from 13 per cent 12 months earlier. Delivery services are now available in 970 cities, up from 700.

At the end of March, the KFC loyalty program had more than 120 million members while that for Pizza Hut had about 40 million members.

Questions & Answers

Q.

What proportion of Yum China Holdings' first-quarter sales were made via mobile payments?

A.

Mobile payments accounted for 56 per cent of Yum China Holdings' first-quarter sales, which is an increase from 31 per cent recorded 12 months earlier.

Q.

How did the sales performance of KFC and Pizza Hut compare in the first quarter?

A.

System sales grew 9 per cent at KFC but declined 1 per cent at Pizza Hut. Same-store sales increased 5 per cent at KFC but dropped 5 per cent at Pizza Hut.

Q.

What was the company's operating profit and net income for the first quarter?

A.

Operating profit grew 33 per cent to $395 million. Net income grew 41 per cent to $288 million during the first quarter.

Q.

How many new restaurants did Yum China Holdings open during the first quarter?

A.

The group opened 203 restaurants during the quarter, bringing its total store count to 8112 locations.

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