Yum China reported a 4 per cent year-on-year increase in revenue for the second quarter ending June 30, reaching $2.8 billion.

Growth was driven by network expansion and a rise in same-store sales, with transactions up 2 per cent.

Yum China CEO Joey Wat credited the positive results to the growing network of nearly 17,000 locations across its F&B brands.

The company opened 336 stores during the quarter, bringing its total to 16,978 locations, including 12,238 KFC and 3864 Pizza Hut outlets. Of these new stores, 89 were opened by franchisees, or 26 per cent.

“We delivered double-digit growth in operating profit and substantially expanded our margins,” Wat remarked.

Operating profit rose 14 per cent year-on-year to $304 million, the highest ever reported by Yum China in the second quarter. Core operating profit also increased 14 per cent from the year prior. 

In turn, the company returned $274 million to shareholders through share repurchases and dividends.

Digital sales accounted for 94 per cent of total company sales, reaching $2.4 billion for the quarter. At the same time, delivery sales grew 22 per cent year-on-year and contributed approximately 45 per cent of total sales.

Membership across KFC and Pizza Hut reached approximately 560 million, up 13 per cent from the previous year, with members generating 64 per cent of total system sales for both brands.

“We are also fortifying our end-to-end digitalization to streamline operations and elevate our customer experience,” added Wat.

“With the strength of our brands and our strategies, we are confident in delivering sustainable, long-term value for our shareholders.”