ame period last year. Growth despite weak sentiment  “It’s true that consumers are becoming more rational and sophisticated in their choices. But we know that the demand is there,” said Joey Wat, CEO and executive director of Yum China. “On one hand, we see ample opportunities across China to enter underserved markets and enhance customer access. On the other hand, we look to balance our unit growth with same-store sales growth.” Yum China opened more than 400 net new locations during the quarter, bringing its restaurant count to nearly 16,000 locations. Operating profit grew 15 per cent to $371 million and net income rose to $297 million from last year’s $244 million for the quarter. The company posted $8.7 billion in revenue during the first nine months with more than $1 billion in operating profit. Same-store sales were down 3 per cent but still marked a “sequential improvement” compared to the 4 per cent decline in the second quarter. “Both system-sales growth and same-store sales growth are the key focus for us,” Wat said. The CEO said the company’s business models, side-by-side with KCoffee Cafes and Pizza Hut Wow, enabled it to broaden its addressable market and capture new customer demand, reaching 500 and 150 stores, respectively. Launched last year, the KCoffee Cafe model features a distinct dining area and menu but shares kitchen and operational resources with normal KFC stores. Meanwhile, Pizza Hut Wow caters to the potential in the growing solo dinners and value-conscious customers.  During the first nine months, KFC sold nearly 200 million cups of KCoffee, surpassing all cups sold in 2023. During the period, both sales and cups sold increased by about 30 per cent.  “As our membership data indicates that a significant majority of our members have yet to try KCoffee, we see huge potential for growth,” Wat said.   At KFC, system sales grew 6 per cent amid 352 net new stores, while same-store sales decreased 2 per cent. Pizza Hut’s sales were up 2 per cent on a reported basis with 102 new locations, but down 6 per cent on a comparable basis. “We anticipate the franchise mix of net new stores will gradually increase to 40-50 per cent for KFC and 20-30 per cent for Pizza Hut over the next few years,” added Wat. Future outlook  “Entering the fourth quarter, we’ve not observed significant changes in market conditions and consumer sentiment,” Adrian Ding, chief financial officer at Yum China, said. “Despite this, we remain confident in China’s midterm and long-term growth opportunities. Quarter four is traditionally a low season for us with smaller sales and profits.” Yum China continues to expect the opening of 1500 to 1700 net new stores this year and capital expenditures of $700 million to $850 million.  The company increased its long-term goal from $3 billion to $4.5 billion.  “We remain bullish on China’s long-term growth opportunities. Our widened price ranges, optimised delivery strategy, and breakthrough business models, help us broaden our addressable market,” Wat said. “We continue to capture underserved customer segments with both equity and franchise new stores.” “Lastly, we maintain our dual focus on sustainable growth and capital returns to shareholders,” she concluded.