Yum China Holdings (YUMC) Q2 2017

posted in: Earnings Call, Notes | 0

Micky Pant – CEO

Growing delivery sales

“On previous calls we have highlighted our growing strength in digital and delivery and we have continued to make progress in this vital strategic frontier. With over 4900 restaurants offering delivery service total delivery sales in the quarter reached $200 million which is about 13% of our total company sales.”

Towards cashless payments in china

“Mobile payment represented about 40% of our total company sales and cashless payment reached a record of $900 million in Q2 alone…If you now come to China and visit a KFC you will be surprised of the number of people not standing in line but actually ordering on their phone just like you would at an airport where you check in at a machine.”

Jacky Lo – Interim CFO, VP, Controller and Principal Accounting Officer

Looking for solid same-stores growth

“we expect our labor inflation to continue in the high single digit range and commodity inflation to be in the low single digit….in order to cover our inflation and maintain our margin, we need solid same-store sales growth….on the commodity price or specifically chicken price, commodity inflation was 4% during the second quarter and the rate peaked at 4.5% in the first quarter, this came out to 4% in the second quarter and we expect it to continue to moderate throughout the rest of the year.”