KFC's average customer price has decreased.
On February 7, 2024, KFC's operating company Yum! China released its 2023 annual report. According to the financial report, in 2023, the company's revenue was 10.98 billion US dollars, a year-on-year increase of 15%; The operating profit was 1.1 billion US dollars, a year-on-year increase of 76%.
In the fourth quarter of 2023, Yum! China's revenue was 2.49 billion US dollars, a year-on-year increase of 19%; The operating profit was 110 million US dollars, a year-on-year increase of 170%.
From KFC's perspective, in the fourth quarter of 2023, the brand received $1.872 billion, a year-on-year increase of 18%; The operating profit was $167 million, a year-on-year increase of 43%.
Specifically, in terms of operating data, in the fourth quarter of 2023, KFC's system sales increased by 20% year-on-year, mainly due to the net addition of new stores, growth in same store sales during the quarter, and the low base impact of store suspensions in the same period of 2022; Same store sales increased by 3% year-on-year; The restaurant's profit margin is 12.0%, a year-on-year decrease of 0.7 pct. If the one-time expense reduction is excluded, it will increase by 0.6 pct compared to the same period last year; In terms of store expansion, KFC saw a net increase of 379 stores in the current period, reaching a historic high; In 2023, a total of 1439 new stores were opened, including 1246 directly operated stores, 193 franchised stores, and 237 closed stores. At the end of the period, the number of stores reached 10296. As a comparison, McDonald's China had 5903 stores during the same period.
According to calculations from Everbright Securities, although KFC achieved an increase in same store sales in the fourth quarter of last year, the unit price per customer decreased by 11% year-on-year, and a 16% increase in customer flow compensated for this loss.
In fact, KFC is indeed trying to make it as cheap as possible. At the end of 2023, it launched a new product called "Pancake Burger". The key feature of this category is its low price. The new KFC OK three piece set is priced at only 19.9 yuan. During the same period, McDonald's China announced a price adjustment with an average increase of about 3%. According to Narrow Door Restaurant, KFC's average order price is 33.79 yuan and McDonald's is 29 yuan.
Behind KFC's low customer orders is that the market has changed. According to big data on red food, taking Western fast food as an example, in 2022, more than 90% of consumers in this category spent less than 40 yuan per person, and 63.5% of consumers spent less than 20 yuan per person, an increase of 0.4 percentage points from 2021. In addition, KFC is further sinking, and cost-effectiveness is undoubtedly an advantage.
Currently, over half of Yum! Brands China's new stores are located in lower tier cities.
On February 8th, Yum! Brands China closed at HKD 316 per share, a decrease of 5.05%.
On the same day, the Shanghai Consumer 80 Index closed at 4651.73 points, a decrease of 0.02%.
Consumer Personnel
Guangming Dairy: Liu Ruibing resigns from the position of CFO of the company
On February 7th, Guangming Dairy announced that Liu Ruibing had applied to resign from his position as CFO due to personal reasons.
Agriculture
Ministry of Agriculture and Rural Affairs: Pork prices rise in the national wholesale market for agricultural products
On February 8th, according to the monitoring of the Ministry of Agriculture and Rural Affairs, as of 2:00 pm on that day, the average price of pork in the national agricultural wholesale market was 22.97 yuan/kg, an increase of 0.3% from the 7th.
Tianbang Food: Sales revenue of commercial pigs in January was 639 million yuan
On February 7th, according to Tianbang Food's announcement, in January 2024, 701500 heads of commercial pigs were sold, including 236200 piglets sold, with a sales revenue of 639.4138 million yuan and an average sales price of 13.20 yuan/kg (the average price of commercial fat pigs was 12.92 yuan/kg), with month on month changes of -16.97%, -30.97%, and -2.28%, respectively; The year-on-year changes were 83.11%, 17.19%, and -8.63%, respectively. The year-on-year increase in the company's live pig sales in January 2024 is mainly due to the company's adjustment and compression of the layout in areas with high disease risk in January this year, resulting in an increase in the sale of commercial pigs and piglets.
Ministry of Agriculture and Rural Affairs: The fundamentals of improving summer grain and oil production have not changed
On February 8th, according to the Ministry of Agriculture and Rural Affairs, China has recently experienced widespread rain, snow, and freezing weather. According to the on-site investigation and evaluation by the science and technology team dispatched by the Ministry of Agriculture and Rural Affairs, agricultural situation scheduling, and comprehensive analysis of local feedback, this round of rain, snow, and freezing weather has caused some areas to freeze winter rapeseed and winter wheat, but it has not changed the fundamentals of improving summer grain and oil production.
Food and Beverage
"Green mood" cross-border launch of Bean paste cake ice cream
On February 8, according to China.com, Mengniu's famous ice cream brand "Green Mood" launched Bean paste cake ice cream and launched a series of online and offline promotion activities. It is understood that the Bean paste cake product launched by "Green Mood" this time is a cross-border innovation attempt with the traditional cake taste, and it is the first to create the concept of "frozen Chinese dessert Bean paste cake".
Chairman of Yanjing Beer: This year is a crucial year for the company to climb and overcome obstacles
On February 7th, the official WeChat account of Yanjing Beer released its Chairman Geng Chao's 2024 Spring Festival speech. He said that last year, the company and its employees earned a good start, stable performance in half a year, three quarters of progress, and excellent performance throughout the year through sweat and responsibility, continuing the positive development momentum of the enterprise. Yanjing's scale and growth rate still outperformed the industry, laying a solid foundation for the goals of "14th Five Year Plan" and "Five Battles and Five Wins". This year is a crucial year for Yanjing to overcome obstacles, and continuing to focus on implementation is the key factor and only way for the company to do all its work well.
Sunshine Dairy: The controlling shareholder plans to continue increasing their holdings of the company's stocks by 10-20 million yuan
On February 7th, Sunshine Dairy announced that its controlling shareholder, Sunshine Group, increased its holdings of 776800 shares in the company on February 6th. Sunshine Group plans to continue to increase its holdings of the company's stocks by 10-20 million yuan, with no price range set for this increase.
Qiaqia Food: Extension of the validity period of the fifth employee stock ownership plan by 12 months
On February 7th, Qiaqia Food announced that the company had held the fifth meeting of the sixth board of directors and approved the proposal to extend the duration of the fifth employee stock ownership plan by 12 months, which is until April 7th, 2025.
Kalabi's performance reached a new high in 5 years
On February 7th, Carlsby announced its consolidated financial results for the period from April to December 2023, with a year-on-year increase of 37% in net profit to 17.1 billion yen, setting a new five-year high for the same period. During the period, sales increased by 9% to 227.3 billion yen, while operating revenue increased by 31% to 23.7 billion yen, both reaching historic highs. The price increase drove an increase of 12.3 billion yen in operating revenue, offsetting the increase in manufacturing costs such as raw materials and electricity. In addition to the contribution of price increases, the increase in foreign exchange earnings has also driven profit growth.
Absolute Vodka launches ready to drink cocktails in the United States
On February 7th, Absolute Vodka launched two flavors of ready to drink cocktails in the United States, thus entering the ready to drink category. "Pre mixed cocktails are the fastest-growing category of spirits, with a trend of surpassing wine and spirits this year. We are pleased that absolute vodka has officially entered the ready to drink category of spirits," the brand said.
Tyson Food's first quarter revenue increased by 0.4% year-on-year
On February 6th, Tyson Foods announced its first quarter results as of December 30th, 2023. The quarterly revenue increased by 0.4% year-on-year, reaching 13.32 billion US dollars. The adjusted operating profit decreased from $453 million in the same period last year to $411 million. The quarterly net profit attributable to the company was $107 million, compared to $316 million in the same period last year.
Catering
More than 150 catering units in Yanji promise not to raise prices during the Spring Festival period
On February 7th, according to the Yanbian Morning News, more than 150 restaurants in Yanbian have publicly displayed a commitment letter of "no price increase during the Spring Festival" in their stores. According to the Commitment Letter, merchants are required to strictly comply with relevant laws, regulations, and pricing policies from February 9th to 17th, and no price increase will be made for any dishes while ensuring quality and quantity; We will resolutely avoid "seasonal prices", false discounts, "yin and yang menus", and refrain from making "sky high" New Year's Eve meals to maintain market price order during the Spring Festival period.
Chipotle's performance exceeded expectations last quarter
On February 7th, according to Chipotle, a Mexican flavor chain restaurant in the United States, its quarterly performance exceeded expectations. Last quarter, Chipotle's customer traffic increased by 7.4%, and its profits and revenue exceeded analysts' expectations, reversing the downward trend of industry wide customer traffic. Looking ahead to 2024, Chipotle expects to achieve median single digit growth in same store sales throughout the year and plans to open 285 to 315 new stores.
Haidilao claims to have received a pre order of 20000 tables for New Year's Eve
On February 5th, according to Haidilao, as the Chinese New Year approaches, Haidilao has received approximately 20000 pre orders for New Year's Eve tables. Private rooms and large tables are in high demand during the Chinese New Year. Previously, the relevant person in charge of the company had stated that over 600 Haidilao stores and over 400 delivery stations would continue to operate on New Year's Eve and Chinese New Year's Day this year. Starting from the second day of junior high school, Haidilao across the country will fully resume operations.
E-commerce retail
Alibaba's Cai Chongxin: Not in a hurry to have Cainiao and Hema go public
On February 7th, Alibaba Group Chairman Cai Chongxin stated in a conference call that Alibaba is not in a hurry to let Cainiao and Hema conduct an IPO. "We will consider separate financing for different businesses, but we will not act too hastily." Cai Chongxin stated that the current strategic focus is to promote synergies between different businesses within the group. The management stated at the meeting that the current market conditions cannot truly reflect the intrinsic value of the business.
Ele.me launches the Blue Knight Spring Festival Care Action
On February 6th, Ele.me, in collaboration with the China Finance, Trade, Textile and Tobacco Union, the China Workers Development Foundation, the Organization Department of the Chaoyang District Committee of Beijing, and the Beijing CBD Federation of Trade Unions, held a New Year care event at the Beijing CBD Knight Station. According to Chen Yanxia, Vice President of Ele.me, Ele.me will hold hundreds of New Year's Eve dinner events in various regions this year to celebrate the New Year with riders. In addition, more care measures will be launched, such as priority purchase of train tickets, subsidies for returning to work, and online care red envelopes.
Beauty and fashion
Huaren Pharmaceutical: Holding subsidiary obtains cosmetics production license
On the evening of February 7th, Huaren Pharmaceutical announced that its controlling subsidiary, Huaren Tongji, had obtained a cosmetics production license. The subsidiary Huaren Tongji focuses on medical science skin care. At present, its main products include collagen sleep facial mask, small molecule collagen water, vitamin E water cream, aurora good night essence, vitamin E milk, sunscreen, etc.
Tourism travel
The highest daily passenger flow at Hengqin Port during the Spring Festival holiday will exceed 80000 people
On February 8th, CCTV News reported that according to the Hengqin Border Inspection Station of Zhuhai Border Inspection Station, the passenger flow at Hengqin Port is expected to continue to be high during the 2024 Spring Festival holiday. Passengers passing through Hengqin Port will reach a historic high, with an expected daily passenger flow of around 71000 people. The period from the third to the seventh day of the Lunar New Year is the peak day for passenger flow. At that time, the passenger flow of commuters from Qinzhou and Macao, as well as outbound and inbound travelers from mainland China, will overlap, It is expected that the maximum daily passenger flow will exceed 80000 people. The relevant person in charge of Hengqin Border Inspection Station stated that in order to actively respond to peak passenger flow, Hengqin Port will take measures such as early assessment of passenger flow, scientific adjustment of duties, early opening of full channels, and strengthening on-site guidance to ensure smooth and orderly customs clearance at Hengqin Port.
Bali will levy a tourism tax on foreign tourists
On February 8th, according to media reports, the tourist destination of Bali will impose a tourism tax of 150000 Indonesian rupiah (approximately 69 yuan) per person on all foreign tourists starting from the 14th of this month. The local government has stated that the new taxes will be used to improve local tourism facilities, as well as to protect the environment and culture.
Film and Television Entertainment
The total pre-sale box office of the 2024 Spring Festival new film exceeded 400 million yuan
On February 8th, according to the Lighthouse Professional Edition, as of 12:42 on that day, the total pre-sale box office of new films for the 2024 Spring Festival season exceeded 400 million yuan. "Flying Life 2", "Hot and Hot", and "Article 20" are currently among the top three pre-sale box office new films for the Spring Festival season.
Huace Film&TV: The short play produced will be launched in Tiktok during the Spring Festival
On February 8th, Huace Film and Television stated on the interactive platform that the company did not have any controlled film works participating in the Spring Festival season. The boutique short dramas "Search for Song Dynasty", "My Way Home Is Funny" and "The Girl Who Assassinated the Novelist Strikes Back" produced by the company will be launched in Tiktok during the Spring Festival.