Summary by Moomoo AI
Yum China reported total revenues of $2.679 billion in Q2 2024, up 1% year-over-year, or 4% excluding foreign exchange impact. Net income increased 8% to $212 million, while diluted earnings per share rose 17% to $0.55. System sales grew 4% year-over-year in constant currency, though same-store sales declined 4% during the quarter.The company's restaurant network continued expanding, with total store count reaching 15,423 as of June 30, 2024, representing a 13% increase from the prior year. KFC remained the largest brand with 10,931 stores, while Pizza Hut operated 3,504 locations. Restaurant profit margin decreased to 15.5% from 16.1% in Q2 2023, primarily due to increased value-for-money offerings and wage inflation.Looking ahead, Yum China expects capital expenditures for fiscal 2024 to be between $700-850 million, focusing on accelerating store network expansion and store remodeling. The company declared a quarterly dividend of $0.16 per share and repurchased 21.7 million shares for $868 million year-to-date, with approximately $666 million remaining under its share repurchase authorization.
