Yum China (09987) releases its 2023 annual performance with a net profit of 827 million US dollars, a year-on-year increase of 87%. It plans to distribute a dividend of 0.16 US dollars per share.

YUM CHINA (09987) announced its annual performance as of December 31, 2023, with total revenue increasing by 15% to $10.98 billion. Operating profit grew by 76% to $1.1 billion. Adjusted operating profit increased by 77% to $1.1 billion. Core operating profit increased by 79%. Net profit was $827 million, an 87% year-on-year increase. Diluted earnings per share increased by 89% to $1.97, with a proposed cash dividend of $0.16 per share. In 2023, the company seized the opportunities brought about by the opening up of the Chinese market during the pandemic, leading to significant growth in revenue, operating profit, and net profit. In 2023, total revenue increased by 15% or 21% (excluding the impact of foreign exchange fluctuations of $589 million), mainly due to a 9% contribution from net new store openings, 7% and 6% respective growth in same-store sales for KFC and Pizza Hut, and the low base effect of store closures during the temporary shutdowns in 2022 due to the COVID-19 pandemic. Operating profit increased by 76% or 86% (excluding the impact of foreign exchange fluctuations of $61 million), driven by revenue growth in the company's restaurants, favorable raw material prices, offset partially by increased promotional activities, reduced temporary subsidies, and single-digit wage increases. In 2023, net profit increased by 87% or 97% (excluding the impact of foreign exchange fluctuations of $46 million), mainly due to the increase in operating profit and interest income, partially offset by higher income tax expenses resulting from increased pre-tax profits. System sales increased by 21% compared to the same period last year, excluding the impact of foreign exchange fluctuations. This growth was primarily driven by a 9% contribution from net new store openings, 7% growth in same-store sales, and the low base effect of store closures during the pandemic in the previous year. The total number of stores grew by 13% in 2023, with a net increase of 1,697 stores, exceeding the annual target for net new store openings. The total number of stores reached 14,644, covering over 2,000 towns and cities.