From CNBC:

Yum China’s CEO Joey Wat remains optimistic despite investor concerns about China’s economy. Yum China’s revenue grew 19% in Q4, with same-store sales rising 4%. Lower-tier cities like Chengdu are showing stronger sales growth due to more disposable income. Yum China plans to expand to over 20,000 locations by 2026.

Yum China’s sales are growing despite economic worries. Majority of its footprint is KFC locations and it also operates Pizza Hut and Lavazza cafes. Yum China uses a barbell strategy, offering both affordable and premium options. The company aims to attract consumers in lower-tier cities with more disposable income.

China’s economic growth is expected to slow in 2024 due to issues in the real estate sector and softer global demand. Yum China, with over 14,600 restaurants, is focused on expanding in lower-tier cities to attract consumers with more disposable income. Beijing will reveal its annual GDP target at an upcoming parliamentary meeting.



Read more at CNBC: Yum China CEO says consumers are growing more ‘rational’