On the morning of August 6th, Yum! China announced its Q2 2024 financial report. The total revenue for this quarter reached 2.68 billion US dollars. Excluding the impact of foreign currency, the total revenue increased by 4%. The core operating profit for this quarter increased by 12%. In the complex and ever-changing economic environment, Yum! Brands China has shown significant growth in same store transaction volume and stable profit margins, demonstrating excellent market adaptability.
As of June 30, 2024, Yum! China has 15423 stores in total, including 10931 KFC stores and 3504 Pizzahut stores. The new store continues to maintain a good return on investment: KFC's return on investment cycle is about two years, and Pizzahut's return on investment cycle is also shortened to two to three years. This quarter, Yum! Brands China added a net of 401 new stores, of which 25% were franchise stores.
Yum China's food delivery sales revenue has maintained double-digit growth over the past decade, with a year-on-year increase of 11% in this quarter. Takeaway accounts for about 38% of the revenue of KFC and Pizzahut restaurants. The digital order revenue reached 2.2 billion US dollars, accounting for approximately 90% of the company's restaurant revenue, continuously demonstrating the company's effectiveness in digital transformation. In addition, the total number of members of KFC and Pizzahut has exceeded 495 million, accounting for more than 65% of member sales, showing strong customer stickiness and brand influence.
Looking at the performance report of Yum! China in the second quarter, this growth is attributed to the continuous promotion of innovation and enhanced resilience in all aspects of the business. It is understood that Yum! China has re examined every key process and cost element in its business, and improved operational efficiency and adaptability through innovation. In addition, the company combined automation and artificial intelligence technology to promote the intelligent system iKitchen in all Pizzahut stores. It uses artificial intelligence, the Internet of Things, machine learning algorithms and other high-tech to help front-line operations, which can effectively improve kitchen production efficiency. iKitchen can also combine order content and on-site restaurant capacity to accurately estimate the meal time of each order. At the same time, Yum! China is also the first in its industry to adopt Gen AI technology to improve food quality and optimize operational efficiency.
In terms of innovative products, breaking through business models, and focusing on cost-effectiveness, KFC's new original chicken burger has been highly sought after by consumers since its launch in May; Pizzahut's innovative Pizza Hut has won the favor of a large number of "one person food" customers. Inspired by its success, Pizzahut plans to expand Pizza Hut to more than 3000 stores in August.
KCOFFEE is sold in all KFC stores. It is worth mentioning that in the first half of 2024, KCOFFEE sold nearly 120 million cups, a year-on-year increase of 36%, and sales exceeded 1 billion yuan, a year-on-year increase of 26%. This year, Kenyue Coffee has increased from only 100 stores in March to nearly 300 stores in July, about tripling in number. It is expected that by the end of this year, Kenyue Coffee's store count will expand to 500 to 600, in order to capture more coffee market share.
In terms of breakthrough business model, the WOW store model launched by Pizzahut, which has just reached the milestone of 3500 stores, is a major breakthrough. By the end of July, Pizzahut had transformed more than 100 existing stores into the WOW store model, and the sales of the first batch of new stores in the same store increased significantly. Pizzahut is accelerating the promotion of WOW store mode. It is expected that the number of WOW stores will more than double by the end of this year.
In June of this year, the National Development and Reform Commission and five other departments jointly issued the "Measures for Creating New Consumption Scenarios and Cultivating New Growth Points in Consumption", which clearly stated the need to develop the subdivision of catering consumption and support the intelligent upgrading of catering consumption.
With our leading ability and scale in the industry, we are not only able to effectively respond to challenges, but also transform them into our competitive advantage. We believe that we have the ability to fully seize the long-term growth opportunities in the Chinese market, "said Joey Watt, CEO of Yum China. The performance report submitted by Yum China in the second quarter proves its forward-looking development strategy. In the complex market environment, Yum! China will continue to promote long-term sustainable development through store expansion, product innovation, market expansion, and model innovation.