Author丨He Hongyuan, Chen Sizhu.
Editor丨Zhang Weixian.
The unit price of KFC has become lower.
On February 7, 2024, Yum China, KFC's operating company in China, released its 2023 annual report. According to the financial report, in 2023, the company's revenue will be 109US$800 million, up 15% year-over-year; Operating profit was $1.1 billion, up 76% year-over-year.
In the fourth quarter of 2023, Yum China posted revenue of 24US$900 million, a year-on-year increase of 19%; Operating profit 1$100 million, up 170% year-over-year.
As far as KFC is concerned, in the fourth quarter of 2023, the brand will close 18US$7.2 billion, up 18% year-on-year; Operating profit 1$6.7 billion, up 43% year-over-year.
Specific to the operating data, in the fourth quarter of 2023, KFC system sales increased by 20% year-on-year, mainly due to the net new stores in the quarter, same-store sales growth and the low base impact of store suspension in the same period in 2022; Same-store sales increased 3% year-over-year; The restaurant margin is 120%, down 07pct, excluding the impact of one-time fee reductions, increased by 06pct;In terms of store expansion, KFC added a net of 379 stores in the current period, a record high; In 2023, a total of 1,439 new stores will be opened, of which 1,246 will be directly operated, 193 will be franchised, and 237 will be closed, bringing the number of stores at the end of the period to 10,296. For comparison, during the same period, McDonald's China had 5,903 stores.
According to Everbright**, although KFC's same-store sales increased in the fourth quarter of last year, the unit value of customers fell by 11% year-on-year, and the increase in customer flow made up for this loss.
In fact, KFC is really trying to make it as cheap as possible. At the end of 2023, it will launch a new product "pie burger". The important attraction of this category is the "low price". The price of the new "KFC OK three-piece set" is only 19$9. During the same period, McDonald's China announced a price increase of about 3% on average. According to the narrow door restaurant, the unit price of KFC is 3379 yuan, McDonald's is 29 yuan.
Behind the low unit price of KFC is that the market has changed. According to the big data of red meals, taking Western-style fast food as an example, in 2022, the per capita consumption of this category will account for more than ninety percent of consumers, and the proportion of consumers below 20 yuan will be 635%, an increase of 04 percentage points. In addition, KFC is sinking further, and cost performance is undoubtedly an advantage.
Currently, more than half of Yum China's new stores are located in lower-tier cities.
sfc
Editor: Liu Xueying, intern: Zhao Fengling.
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