Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Investor Day (2023)
23 slides from Yum China's investor day presentation, 2023
Slide 1: Jeff Kuai, General Manager, Pizza Hut
Jeff Kuai General Manager, Pizza Hut
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements. This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor
Slide 3: From Revitalization to Takeoff
From Revitalization to Takeoff Transformed in All Aspects A Long Runway for Growth Clear Strategy to Accelerate Growth 2
Slide 4: Undisputed Leader in Multiple Categories in China
Undisputed Leader in Multiple Categories in China Casual Dining Pizza Category Restaurant Brand 3,072 Restaurants in 650+ 100mn+ Pizzas Sold 2 NO.1 Cities and Towns 1 Steak Category Pasta Category 20mn+ Steaks Sold 2 50mn+ Pastas Sold 2 1. Store count and city coverage as of Jun 30, 2023, by YUMC ci
Slide 5: Transformed in All Aspects
Transformed in All Aspects Store Count Restaurant Margin Operating Profit 2023 1H 3,072 13.3% $90mn 19 1H–23 1H Growth +36% +40bps +14% 2019 1H 2,252 12.9% $79mn 4
Slide 6: Growth Led by Improved Fundamentals
Growth Led by Improved Fundamentals Consumer Perception1 Channel Expansion Digital Capability Good Taste Value for Money Off-premise Sales Mix Member Count Member Sales Mix 2023 1H ~86% ~76% ~46% 145 mn+ ~67% 19 1H–23 1H Growth +7pt +7pt +17pt 2X+ +23pt 2019 1H ~79% ~69% ~29% 60 mn+ ~44% 1. Based on
Slide 7: Pizza Hut Has a Long Runway for Growth
Pizza Hut Has a Long Runway for Growth Top 2 –Top 10 More Cities More Segments Geography Consumer Aim to Penetrate into 1,200+ Cities Expansion Expansion EmphasizeYounger & Price and Towns1 with KFC Presence Cautious Consumers China Casual Dining Restaurant Market More Categories More Occasions Prod
Slide 8: Going Forward: From RGM1.0 to RGM2.0
Going Forward: From RGM1.0 to RGM2.0 Growth Resilience Moat Footprint Growth | Sales Growth | Profit Growth 7
Slide 9: Accelerating Footprint Expansion
Accelerating Footprint Expansion Net New Stores Target 400-500 Net New Stores Per Year Highest since spin-off 313 235 74 41 2019 2020 2021 2022 2023E 2024E 2025E 2026E Achieve 2-3 years Payback Period 8
Slide 10: Flexible Models to Increase Density in High-tier Cities
Flexible Models to Increase Density in High-tier Cities Satellite Model Jinan, Shandong (Smaller Size, More Delivery Focus) Fast Casual Experience Compact Model Made-to-Order Light Service Inviting Ambience Shanghai (Smaller Size, Upgraded Dine-in Focus) 9
Slide 11: Opportunities in Low-tier City Penetration and Franchising
Opportunities in Low-tier City Penetration and Franchising Low Tier Franchisee Deepen Penetration Leverage Resources Number of Cities and Towns1 in China 3,000+ Tourist Location Terracotta Warrior, Xi’an, Shaanxi 1,900+ 650+ Remote Area Zhangye, Gansu 1. By YUMC city definition; City coverage as of
Slide 12: Five Pillars to Grow Same-Store Sales
Five Pillars to Grow Same-Store Sales Reinforcing Pizza Leadership Position Expanding into New Categories, Occasions & Segments Creating More Affordable Moments Driving Delivery Growth Enhancing Digital Capabilities 11
Slide 13: Reinforcing our Leadership in Pizza Category
Reinforcing our Leadership in Pizza Category Enhance Expert Image Drive Repeat Purchase Continue Innovation 12
Slide 14: Expanding into New Categories, Occasions and Consumer Segments
Expanding into New Categories, Occasions and Consumer Segments More Categories More Occasions More Consumer Segments Individual Sized Pizza Burgers Individual Meals Young Generation Panini Coffee Breakfast Pet Lovers 13
Slide 15: Creating More Affordable Moments
Creating More Affordable Moments Widen Price Range Reinforce Signature Platforms Create New Excitement Scream Wednesday Buy One Get One Bolognese Pizza BBQ Sausage Pizza Charcoal Grilled Flavor Steak Reaching More Customers 14
Slide 16: Driving Delivery as a Key Growth Engine
Driving Delivery as a Key Growth Engine 37% +68% Delivery Sales Mix in 2023 1H Sales Growth in 2023 1H vs 2019 1H Better Experience Better Offers 30-mins Commitment 15
Slide 17: Enhancing Digital Capabilities
Enhancing Digital Capabilities Expand Member Base Drive Member Frequency Improve Ordering Experience Omni-channel Traffic Acquisition Tiered Membership Interactive Ordering Public Domain Member Base Private Domain 16
Slide 18: Refining Design to Elevate Store Ambience
Refining Design to Elevate Store Ambience Young and Modern Pizza Hut Intime Department Store, Xiaoshan, Hangzhou 17
Slide 19: Refining Design to Elevate Store Ambience
Refining Design to Elevate Store Ambience City Hangout 89% Stores in New Design Pizza Hut Sincere Plaza Store, Shanghai 18
Slide 20: Expanding Margin through Multiple Cost Levers
Expanding Margin through Multiple Cost Levers Reduce Leverage Increase Workload in Store AI & Automation Percentage of Variable Cost Pizza Hub Robotic Server Smart Part-time Replenishment Employment Admin Work Simplification Automatic Stir-frying AI Food Quality Variable Rent Machine Inspection Ligh
Slide 21: Respect at the Core of Our “People First” Philosophy
Respect at the Core of Our “People First” Philosophy RGM No.1 Customer Mania Best-in-class People Care 20
Slide 22: Sustainability and Community Initiatives
Sustainability and Community Initiatives Grow Local Initiative Public Reading Care for Stray Animals Food Bank 21
Slide 23: The Most Innovative Pizza Brand in the World
The Most Innovative Pizza Brand in the World