Yum China Holdings Inc (YUMC) 2024 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Yum China fourth-quarter and fiscal year 2024 Earnings Conference Call. (Operator instructions) Please note that today's call is being recorded.

您好，感謝您的支持。歡迎參加百勝中國2024財年第四季及全年業績電話會議。（操作員指示）請注意，今天的通話正在錄音。

I would now like to turn the conference over to your speaker Florence. Please go ahead.

現在我想將會議交給發言人佛羅倫斯。請繼續。

Thank you, operator. Hello, everyone. Thank you for joining Yum China's fourth-quarter 2024 earnings conference call. On today's call are our CEO, Ms. Joey Wat; and our acting CFO, Mr. Adrian Ding. I'd like to remind everyone that our earnings call and investment materials contain forward-looking statements, which are subject to future events and uncertainties.

謝謝您，接線生。大家好。感謝您參加百勝中國2024年第四季財報電話會議。參加今天電話會議的有我們的執行長 Joey Wat 女士；以及我們的代理財務長 Adrian Ding 先生。我想提醒大家，我們的收益電話會議和投資資料包含前瞻性陳述，這些陳述受未來事件和不確定性的影響。

Actual results may differ materially from these forward-looking statements. All forward-looking statements should be considered in conjunction with the cautionary statement in our earnings release and the risk factors included in our filings with the SEC. This call also includes certain non-GAAP financial measures.

實際結果可能與這些前瞻性陳述有重大差異。所有前瞻性陳述應與我們收益報告中的警示聲明以及我們向美國證券交易委員會提交的文件中包含的風險因素一起考慮。本次電話會議也包括某些非公認會計準則財務指標。

You should carefully consider the comparable GAAP measures. Reconciliation of non-GAAP and GAAP measures is included in our earnings release, which is available to the public through our Investor Relations website located at ir.yumchina.com.

您應該仔細考慮可比較的 GAAP 指標。非 GAAP 和 GAAP 指標的調節表包含在我們的獲利報告內，公眾可透過我們的投資者關係網站 ir.yumchina.com 取得。

You can also find a webcast of this call and a power phone presentation on our IR website. Please note that during today's call, all year-over-year growth results exclude the impact of foreign currency, unless otherwise noted.

您也可以在我們的 IR 網站上找到本次電話會議的網路直播和強力電話演示。請注意，在今天的電話會議中，所有同比增長結果均不包括外幣的影響，除非另有說明。

Now I would like to turn the call over to Joey Wat, CEO of Yum China. Joey?

現在我想把電話轉給百勝中國執行長屈翠容（Joey Wat）。喬伊？

Hello, everyone, and thank you for joining us. We just celebrated Chinese New Year last week. I want to wish everyone a happy and healthy year of the snake. I'm excited to share that we achieved another quarter of strong results in quarter four, capping a record breaking year. In the fourth quarter, system sales grew 4% (technical difficulty) year-over-year outperforming the industry. Same-store sales index sequentially improved to 99% of prior year levels. Restaurant margin and OP margin expanded significantly year-over-year. Core operating profit grew 35%.

大家好，感謝大家的參與。我們上週剛慶祝了農曆新年。我祝福大家蛇年快樂、身體健康。我很高興地告訴大家，我們在第四季再次取得了強勁的業績，創下了破紀錄的一年。第四季度，系統銷售額較去年同期成長4%（技術難度），表現優於產業。同店銷售指數較上季提高至去年同期的 99%。餐廳利潤率和營業利潤率較去年同期大幅擴大。核心營業利潤成長35%。

For the full year, we set multiple new records. We opened a record 1,751 net new stores, ending the year with 16,395 stores. Adjusted operating profit reached $1.2 billion. Core OP increased 12% and diluted EPS grew 22%. Our dual focus on operational efficiency and innovation led to improvements in both the top and bottom lines.

全年我們創下了多項新紀錄。我們創紀錄地開設了 1,751 家新店，年底門市總數達到 16,395 家。調整後的營業利潤達到12億美元。核心營業利潤成長12%，稀釋每股收益成長22%。我們對營運效率和創新的雙重關注帶來了營收和利潤的雙雙提升。

Despite a challenging environment and value-minded consumers, our efforts have led to eight consecutive quarters of positive transaction growth. We have sequentially improved the same-store sales index and expanded margins since quarter two.

儘管環境充滿挑戰且消費者註重價值，但我們的努力仍使交易量連續八個季度實現成長。自第二季以來，我們連續提高了同店銷售指數並擴大了利潤率。

KFC has shown considerable resiliency and growth momentum. KFC accelerated store openings and reached 2,200 plus cities in China. Delivery sales grew 16%, continuing our decade-long double-digit annual growth momentum.

肯德基表現出了相當強的韌性和成長動能。肯德基加速開店，在中國門市數量已覆蓋2,200餘個城市。送貨銷售額成長了16%，延續了十年來兩位數的年成長動能。

2024 feels to me like an inflection point for Pizza Hut. It has made significant progress in transforming itself by enhancing its mass market appeal and operational efficiency. Core OP more than tripled in quarter four and grew 19% for the full year.

2024 年對我來說就像是必勝客的轉捩點。透過增強大眾市場吸引力和營運效率，該公司在轉型方面取得了重大進展。核心營業利潤在第四季度增長了兩倍多，全年增長了 19%。

Both brands have tapped into underserved markets and expanded into adjacent categories to drive incremental traffic, sales and profit. Our breakthrough models KCOFFEE Cafe and Pizza Hut WOW showed promising results and have significant potential for further growth.

兩個品牌都已進入尚未充分服務的市場，並拓展至鄰近類別，以增加流量、銷售額和利潤。我們的突破性模式KCOFFEE Cafe和Pizza Hut WOW表現出良好的業績，並具有巨大的進一步成長潛力。

I want to thank our incredible team for delivering these strong results. Embracing our people-first culture, we celebrated our achievements with over 11,000 restaurant managers at our RGM convention in Hong Kong. We continue to delight our customers with great food l and excellent value for money, and we are grateful to our shareholders for your continued support.

我要感謝我們優秀的團隊取得這些優秀的成績。我們秉承以人為本的文化，在香港的 RGM 大會上與 11,000 多名餐廳經理一起慶祝我們的成就。我們將繼續以美味的食物和物超所值的服務取悅我們的顧客，我們也感謝股東們一直以來的支持。

With that, let me turn the call over to Adrian to discuss our results in detail. Afterward, I will share additional highlights on our CNY activities and our strategy. Adrian?

說完這些，讓我將電話轉給 Adrian，詳細討論我們的結果。之後，我將與大家分享更多我們新年活動的亮點和策略。阿德里安？

Thank you, Joey, and Happy Chinese New Year, everyone. In 2024, all of our brands made notable progress. Let me share some color by brand. I'll start with KFC, which consistently delivered strong performance. In 2024, KFC grew system sales by 6%, exceeding industry levels.

謝謝你，Joey，祝大家新年快樂。2024年，我們所有品牌都取得了顯著的進步。讓我按品牌分享一些顏色。我先從肯德基開始說起，其表現一直非常強勁。2024年，肯德基系統銷售額成長6%，超過產業水準。

We have developed innovative products for our flagship categories of original recipe chicken and juicy whole chicken, resulting in double-digit sales growth. We have also expanded our delivery market share on aggregator platforms by capturing more smaller orders.

我們針對原味雞和多汁全雞這兩個旗艦類別開發了創新產品，實現了兩位數的銷售成長。我們也透過獲取更多小額訂單擴大了我們在聚合平台上的配送市場份額。

At the same time, we improved rider efficiency and further enhanced customer experience. KFC opened a record 1,352 net new stores in 2024, bringing our total store count to 11,648. Our flexible models enable us to broaden our reach with a mix of company-owned and franchise stores.

同時，我們提高了騎士效率，進一步提升了客戶體驗。肯德基於 2024 年淨開設了 1,352 家新店，創下新紀錄，使我們的總店數達到 11,648 家。我們靈活的模式使我們能夠透過公司自營店和特許經營店的組合來擴大我們的業務範圍。

We added nearly 1,000 company-owned net new stores in 2024. The payback period for our new stores remained healthy at two years. 30% of KFC's net new stores were franchise stores. They help us unlock incremental opportunities in lower-tier cities remote areas and strategic locations such as highways, campuses and tourist areas. KFC's growth potential in China is huge.

2024 年，我們新增了近 1,000 家公司自有淨新店。我們新店的投資回收期仍維持在兩年的健康水準。肯德基淨新店有30%是特許經營店。它們幫助我們在二線城市偏遠地區以及高速公路、校園和旅遊區等戰略位置發掘增量機會。肯德基在中國的成長潛力巨大。

Coffee is a key growth driver for KFC. In 2024, KFC sold 250 million cups of KCOFFEE, marking a 30% growth. Our breakthrough KCOFFEE Cafe model expanded from around 50 cafes in 2023 to 700 cafes in 2024. We plan to expand the model to 1,300 locations by the end of 2025. KFC and KCOFFEE Cafe generated synergies, driving incremental sales and profit.

咖啡是肯德基的主要成長動力。2024年，肯德基銷售2.5億杯KCOFFEE，成長30%。我們突破性的KCOFFEE咖啡館模式將從2023年的約50家咖啡館擴展到2024年的700家咖啡館。我們計劃在 2025 年底將模式擴展到 1,300 個地點。肯德基與KCOFFEE咖啡廳產生綜效，推動銷售額和利潤的增量。

In terms of product innovation, aside from our signature fruity sparkling coffee, this winter, we launched the handshake Americano with frozen pear. The drink features a real frozen pear, a traditional NorthernChinese delicacy, and has generated significant social buzz. Pizza Hut has made substantial progress in becoming more affordable for customers, and profitable for our company. In 2024, Pizza Hut achieved the highest level of OP in RMB since our spin-off. Same-store transactions grew 5%.

在產品創新方面，除了招牌的果味氣泡咖啡外，今年冬天，我們還推出了加冰凍梨的握手美式咖啡。這種飲料的特色是真正的冰凍梨，這是中國北方的傳統美食，引起了巨大的社會轟動。必勝客在為顧客提供更實惠的價格並為公司帶來利潤方面取得了長足的進步。2024年，必勝客實現人民幣營業利潤達到分拆以來的最高水準。同店交易量成長5%。

Restaurant margin expanded by 60 basis points on a comparable basis. Pizza Hut also opened a record of 412 net new stores, bringing the total to 3,724 stores. Pizza Hut's payback period for new stores improved from three years in 2023 to two to three years in 2024. We're transforming Pizza Hut into a more mass market brand by widening price range and enriching the menu. Sales of pizza price under RMB50 increased 50% year-over-year.

餐廳利潤率在可比較基礎上擴大了60個基點。必勝客還創紀錄地開設了 412 家新店，使其門市總數達到 3,724 家。必勝客新店的投資回收期從2023年的3年改善至2024年的2至3年。我們正在透過擴大價格範圍和豐富菜單將必勝客轉變為更大眾化的品牌。50元以下價位的披薩銷量較去年同期成長50%。

Pizza dough burgers, a new category we launched in April has already reached a low single-digit percentage of our sales mix, showing good potential. As Pizza Hut expanded its addressable market, we also streamlined operations to improve efficiency.

我們四月推出的新產品——披薩麵團漢堡，已經在我們的銷售組合中佔據了低個位數的百分比，顯示出良好的潛力。隨著必勝客擴大其目標市場，我們也簡化了營運以提高效率。

We managed to reduce our cost of labor by 110 basis points in 2024. Our breakthrough WOW model is gradually maturing, exceeding 200 stores in 2024. Dine-in sales saw solid growth. WOW delivery sales also improved, while stores attract younger customers and meet functional needs, expanding Pizza Hut's addressable market.

我們成功在 2024 年將勞動成本降低了 110 個基點。我們突破性的WOW模式正逐步成熟，預計2024年門市數量將超過200家。堂食銷售額穩定成長。WOW 外送銷售額也有所提高，同時門市吸引了更年輕的顧客並滿足了功能需求，擴大了必勝客的潛在市場。

Although the ticket average is lower by design due to smaller party sizes and lower per person spending, we successfully drove transaction growth. Margins have improved since launch. We'll continue to refine the WOW model and expand to more locations in 2025. Lavazza continued to grow through its dual growth engines of coffee shops and retail businesses. Store economics have meaningfully improved due to better operational efficiency and reduced new store capital expenditure.

儘管由於聚會規模較小且每人消費較低，平均票價設計較低，但我們成功推動了交易成長。自推出以來，利潤率有所提高。我們將繼續完善 WOW 模型，並在 2025 年擴展到更多地點。Lavazza 繼續透過咖啡店和零售業務的雙重成長引擎成長。由於營運效率的提高和新店資本支出的減少，商店經濟狀況得到了顯著改善。

The retail segment saw sales growth of over 30% and became profitable in 2024. We've made good progress in building appreciation for Lavazza's coffee expertise and enriching food choices, such as Lavazza's signature (inaudible) considered the first coffee on earth, and our Michelin Star chef-themed food offerings. For Little Sheep and Huang Ji Huang, our focus has been on improving their menus, refining store model and strengthening their supply chain.

零售部門銷售額成長超過30%，並於2024年獲利。我們在提高人們對 Lavazza 的咖啡專業知識和豐富的食品選擇的欣賞方面取得了長足的進步，例如 Lavazza 的招牌（聽不清）被認為是世界上第一款咖啡，以及我們以米其林星級廚師為主題的食品。對於小肥羊和黃記皇，我們的重點是改善他們的菜單、改進商店模式和加強他們的供應鏈。

Little Sheep's new conveyor belt (inaudible)model is designed to appeal to solo diners and younger consumers. Huang Ji Huang has demonstrated resilience, delivering profits for five consecutive years ever since our acquisition.

小肥羊的新款輸送帶（聽不清楚）模式旨在吸引單獨用餐的顧客和年輕的消費者。黃記皇表現出韌性，自被收購以來已連續五年獲利。

For Taco Bell, in 2024, we pruned our store portfolio to focus on our key markets, Beijing and Shanghai. These efforts led to improved operating results. Let me now go through our quarter four P&L. As a reminder, restaurant margin on a comparable basis excludes additional VAT deductions as well as temporary relief from landlords and government agencies received in the prior year. Core OP further excludes foreign exchange impact and special items.

對於塔可鐘而言，2024 年，我們將精簡門市組合，專注於我們的關鍵市場北京和上海。這些努力提高了經營績效。現在讓我來介紹一下我們第四季的損益表。提醒一下，可比基礎上的餐廳利潤率不包括額外的增值稅扣除以及去年從房東和政府機構獲得的臨時救濟。核心營業利潤進一步排除了外匯影響和特殊項目。

For quarter four, system sales grew 4% year-over-year, and same-store sales index sequentially improved to 99% of prior year levels. KFC system sales increased 5% year-over-year. Same-store sales index improved sequentially, reaching 99% of prior year levels, with a 3% same-store transaction growth year-over-year.

第四季度，系統銷售額年增4％，同店銷售指數較上季提高至去年同期的99％。肯德基系統銷售額較去年同期成長5%。同店銷售指數較上季改善，達到去年同期的 99%，同店交易額較去年同期成長 3%。

Our widened price range reduced delivery fees and smaller ticket items like coffee and breakfast successfully attracted consumers. Quarter four ticket average was RMB38, 4% lower than prior year levels yet stable with quarter three.

我們擴大了價格範圍，降低了送貨費，咖啡和早餐等小型商品成功吸引了消費者。第四季平均票價為人民幣 38 元，較去年同期下降 4%，但與第三季持平。

Pizza Hut system sales increased 3% year-over-year. Same-store sales index achieved 98% of prior year levels, improving by 4 percentage points sequentially. Same-store transactions grew 9% year-over-year, the highest growth quarter in 2024. The ticket average was 10% lower year-over-year, which is in line with our strategy to transform Pizza Hut into a more mass market brand. More importantly, Pizza Hut's profitability continued to grow. Core OP in quarter four more than tripled year-over-year.

必勝客系統銷售額較去年同期成長3%。同店銷售指數達到去年同期的98%，較上一季提高4個百分點。同店交易額年增 9%，為 2024 年成長最高的一個季度。平均票價較去年同期下降了 10％，這符合我們將必勝客轉變為大眾市場品牌的策略。更重要的是，必勝客的獲利能力持續成長。第四季的核心營業利潤年增了兩倍多。

Our restaurant margin was 12.3%, 160 basis points higher year-over-year. On a comparable basis, restaurant margin was 180 basis points higher year-over-year. We achieved savings across all cost lines. Cost of sales was 31.9%, 50 basis points lower year-over-year. Cost of sales improved through favorable commodity prices and our spending better and buying better initiatives under Project Red Eye.

我們的餐廳利潤率為 12.3%，比去年同期高出 160 個基點。以可比較價格計算，餐廳利潤率比去年同期高出 180 個基點。我們在所有成本方面都實現了節約。銷售成本為31.9%，較上年同期下降50個基點。透過優惠的商品價格和「紅眼計畫」下更好的支出和更好的購買舉措，銷售成本得到了改善。

We continued to pass savings from these initiatives to our consumers, offering excellent value for money. Cost of labor was 28.2%, 80 basis points lower year-over-year, or 90 basis points lower on a comparable basis. Improved operational efficiency more than offset wage increases for our frontline staff. Occupancy and other was 27.6%, 30 basis points lower year-over-year, or 40 basis points lower on a comparable basis. This came from cost optimizations such as utility savings and simplified operations.

我們繼續將這些措施節省的資金轉嫁給消費者，為他們提供物超所值的服務。勞動成本為 28.2%，較上年同期下降 80 個基點，以可比較口徑計算下降 90 個基點。營運效率的提高超過了我們第一線員工薪資的成長。入住率及其他為 27.6%，較上年同期下降 30 個基點，或以可比口徑下降 40 個基點。這是透過節省公用事業和簡化操作等成本優化來實現的。

Our OP margin was 5.8%, 140 basis points higher year-over-year, driven by improved restaurant margin. Operating profit was USD151 million, growing 35% year-over-year. Core OP also increased 35% year-over-year.

我們的營業利潤率為 5.8%，比去年同期高出 140 個基點，這得益於餐廳利潤率的提高。營業利潤為1.51億美元，年增35%。核心營業利潤也比去年同期成長了35%。

Net income was USD115 million, growing 17% year-over-year. As a reminder, our mark-to-market equity investment had a negative impact of $9 million in quarter fur compared to a negative impact of $14 million in the same period last year.

淨收入為1.15億美元，年增17%。提醒一下，我們的以市價計價的股權投資在本季產生了 900 萬美元的負面影響，而去年同期的負面影響為 1,400 萬美元。

We recognized $16 million lower interest income this year from a lower cash balance. Diluted EPS was $0.30, growing 27% year-over-year, or 20% excluding mark-to-market equity investment impact. For the full year, system sales grew 5%, and same-store sales index reached 97% of prior year levels. Restaurant margin was 15.7%, steady year-over-year on a comparable basis. G&A expenses were 5.0% of revenue, in line with our target, and 80 basis points lower compared to 5.8% in the prior year.

由於現金餘額減少，我們今年的利息收入減少了 1,600 萬美元。稀釋每股收益為 0.30 美元，年增 27%，若不包括以市價計算的股權投資影響則成長 20%。全年系統銷售額成長5%，同店銷售指數達到去年同期的97%。餐廳利潤率為 15.7%，與去年同期相比保持穩定。一般及行政開支佔收入的 5.0%，符合我們的目標，較前一年的 5.8% 下降了 80 個基點。

This was due to operational efficiency gains and lower performance-based compensation in the year, among other factors. Operating profit grew 8% to $1.2 billion. Core operating profit increased 12%. Effective tax rate was 26.7%, in line with our guidance and prior year. Net income was $911 million, up 13% year-over-year. Diluted EPS was $2.33, growing 22% year-over-year, or 12% excluding mark-to-market equity investment impact.

這是由於本年度營運效率提高以及績效薪酬降低等因素所致。營業利潤成長 8%，達到 12 億美元。核心營業利潤成長12%。有效稅率為 26.7%，與我們的預期和前一年一致。淨收入為9.11億美元，年增13%。稀釋每股收益為 2.33 美元，較去年同期成長 22%，若不包括以市價計算的股權投資影響則成長 12%。

Now let's turn to capital returns to shareholders. We are on track to return $4.5 billion to shareholders from 2024 through 2026, with a total of $3 billion allocated for 2025 and 2026. The average annual amount is equivalent to around 9% of our market cap. In 2024, we returned $1.5 billion including USD248 million in quarterly cash dividends and $1.24 billion in share repurchases.

現在我們來談談股東的資本回報。我們預計在 2024 年至 2026 年期間向股東返還 45 億美元，其中 2025 年和 2026 年總計將分配 30 億美元。每年的平均金額相當於我們市值的9%左右。2024年，我們回報了15億美元，其中包括2.48億美元的季度現金股利和12.4億美元的股票回購。

Total repurchases exceeded 31 million shares, representing 8% of our total shares outstanding. We generated $714 million in free cash flow in 2024 and ended the year with $2.8 billion in net cash. With our healthy cash position and robust cash-generating capabilities, we're stepping up our quarterly dividend significantly by 50% from $0.16 to $0.24. Assuming $0.24 per quarter, our payout ratio would be equivalent to over 40% of our diluted EPS in 2024. Additionally, our $360 million of share repurchase plan for the first half of 2025 has been executed daily. We're committed to providing attractive capital returns to shareholders.

總回購量超過 3,100 萬股，占我們總流通股的 8%。我們在 2024 年產生了 7.14 億美元的自由現金流，年底的淨現金為 28 億美元。憑藉我們健康的現金狀況和強勁的現金創造能力，我們將季度股息大幅提高 50%，從 0.16 美元提高到 0.24 美元。假設每季 0.24 美元，我們的派息率將相當於 2024 年攤薄每股收益的 40% 以上。此外，我們 2025 年上半年 3.6 億美元的股票回購計畫已每日執行。我們致力於為股東提供有吸引力的資本回報。

Finally, moving on to our 2025 outlook. We continue to maintain our dual focus on system sales and same-store sales growth. In terms of our footprint expansion, we are on track to reach 20,000 stores by 2026. In 2025, we expect to open between 1,600 and 1,800 net new stores.

最後，我們來談談 2025 年的展望。我們將繼續雙重關注系統銷售和同店銷售成長。就我們的足跡擴張而言，我們預計在 2026 年達到 20,000 家門市。2025年，我們預計將淨開設1,600至1,800家新店。

Capital expenditure in 2024 totaled USD705 million. In 2025, we expect capital expenditure to be in the range of USD700 million to USD800 million.

2024年資本支出總計7.05億美元。2025年，我們預計資本支出將在7億至8億美元之間。

Turning to margins. While commodity prices remain largely favorable, we continue to expect wage inflation in 2025. With our ongoing efforts in operational efficiency, we expect G&A expenses as a percentage of revenue to slightly decrease for the year.

轉向利潤。儘管大宗商品價格總體上仍保持有利，但我們預計 2025 年薪資仍將上漲。隨著我們不斷努力提高營運效率，我們預計今年的一般及行政費用佔收入的百分比將略有下降。

For 2025, we expect to hold core OP margin relatively stable or even slightly improved year-over-year. By brand, we're committed to maintaining healthy restaurant margins for KFC and improving Pizza Hut in the mid- to long run.

展望2025年，我們預期核心營業利潤率將維持相對穩定，甚至較去年同期略有提升。從品牌角度而言，我們致力於在中長期維持肯德基健康的餐廳利潤率，並提升必勝客的品牌影響力。

As consumers celebrate the Chinese New Year, we're offering them delicious food, great value and an enjoyable experience. While trading so far has met our expectations, we need to closely monitor post-holiday trading. The external environment remains dynamic.

在消費者慶祝中國新年之際，我們將為他們提供美味的食物、超值的服務和愉快的體驗。雖然迄今為止的交易符合我們的預期，但我們需要密切注意假期後的交易。外部環境依然動態。

Consumers are willing to spend more during holidays but may become more cautious afterwards. We remain hopeful that stimulus policies may positively impact consumption in the mid- to long run. For quarter one, we're confident that same-store transaction index will continue to be positive for the ninth consecutive quarter, and our goal is to outperform the industry.

消費者願意在假日期間花費更多，但假日過後可能會變得更加謹慎。我們仍然希望刺激政策能夠在中長期對消費產生正面影響。對於第一季度，我們有信心同店交易指數將連續第九個季度保持正成長，我們的目標是超越產業。

Let me pass it back to Joey for her comments on CNY and our strategy.

讓我把這個問題轉交給 Joey，請她評論一下人民幣和我們的策略。

Thank you, Adrian. Building on Adrian’s observations on Chinese New Year trading, I was delighted to see our stores bustling with customers. We offered them great food at an incredible value and exciting campaigns featuring Olympic champion and popular IPs. At KFC, we brought crayfish back for the eighth consecutive year. We even combined it with our iconic be Beef Wrap to create a new customer favorite.

謝謝你，阿德里安。根據 Adrian 對農曆新年交易的觀察，我很高興看到我們的商店裡顧客熙熙攘攘。我們為他們提供了超值的美食以及以奧運冠軍和熱門IP為主題的精彩活動。在肯德基，我們連續第八年重新推出小龍蝦。我們甚至將它與我們標誌性的牛肉捲相結合，創造出新的顧客最愛菜餚。

Our Chinese New Year tradition is the golden bucket. This year, for the first time, it included a whole chicken, making it a great choice for sharing with family and friends. At Pizza Hut, we introduced festive trade-up options for our pizzas such as Pistachio Stuffed Crust and Fortune Cat, a crust in the shape of Fortune Cat. In China, the pistachio symbolizes happiness and the Fortune cat represents luck and prosperity. Customers love these good wishes for starting the new year.

我們中國新年的傳統是金桶。今年首次包含整隻雞，是與家人和朋友分享的絕佳選擇。在必勝客，我們為披薩推出了節日昇級版選擇，如開心果餡披薩餅皮和招財貓披薩（一種招財貓形狀的披薩餅皮）。在中國，開心果象徵幸福，招財貓代表好運和繁榮。顧客們都很喜歡這些對新年的美好祝福。

As I reflect on our industry-leading results over the past few years, I come back to our dual focus on operational efficiency and innovation. I think it's fair to say that most view these two as a trade-offs to get one you must compromise on the other. At Yum China, we reject that as a false trade-off. We need both, and both is the only outcome we will accept. Operational efficiency has been a hallmark of Yum China from the beginning, but we have dialed up our efforts significantly in the last couple of years.

當我回顧過去幾年我們行業領先的業績時，我又回到了對營運效率和創新的雙重關注。我認為可以公平地說，大多數人認為這兩者是一種權衡，為了得到其中一個，就必須在另一個上做出妥協。在百勝中國，我們拒絕這種虛假的權衡。我們需要兩者，而兩者也是我們唯一能接受的結果。自成立伊始，營運效率一直是百勝中國的標誌，但在過去幾年中，我們加強了努力。

Our Project Fresh Eye and Red Eye initiatives have given us new perspectives on our operations and transformed our organization. They have made us more efficient, agile and competitive from our restaurants and shared service centers to our supply chain.

我們的「新眼計畫」和「紅眼計畫」為我們的業務運作提供了新的視角，並改變了我們的組織。他們使我們從餐廳、共享服務中心到供應鏈變得更有效率、靈活和競爭力。

At the same time, we have doubled down on digitization, leveraging technology and generative AI to enhance customer experience and efficiency. The gains we have realized from these initiatives are not merely incremental. They represent structural improvements in our business capabilities that set us up for profitable growth far into the future.

同時，我們加倍推動數位化，利用科技和生成式人工智慧來提升客戶體驗和效率。我們從這些措施中獲得的利益不僅僅是漸進的。它們代表了我們業務能力的結構性改進，為我們未來較長時間的獲利成長奠定了基礎。

Innovation colors everything we do in every aspect of our business. We introduced around 600 new or upgraded menu items in 2024. Exciting new food and excellent value for money drive traffic to our stores. We innovated new store models such as KFC Small Town Mini and Pizza Hut will to tap into underserved customer segments. We have found that operational efficiency and innovation fit all and reinforce one another.

創新為我們業務的各個方面所做的每件事增添色彩。我們在 2024 年推出了約 600 種全新或升級的菜單。令人興奮的新食品和物超所值的價格為我們的商店帶來了客流。我們創新了肯德基小鎮迷你店和必勝客等新門市模式，以挖掘尚未充分服務的客戶群。我們發現營運效率和創新相輔相成、相互促進。

We have employed innovation to attack the problem of operational capacity. At KFC, our menu innovation focuses on infusing fresh energy into our flagship categories to unleash their huge potential. Our original Recipe Chicken burger, (inaudible), Gigantic Egg Tart (inaudible), and Crispy whole chicken, (inaudible), generated a lot of excitement. At the same time, we are simplifying operations to support these menu innovations. The same strategy applies to Pizza Hut.

我們用創新來解決營運能力的問題。在肯德基，我們的菜單創新專注於為我們的旗艦類別注入新鮮活力，以釋放其巨大潛力。我們原創的食譜雞肉漢堡（聽不清楚）、巨型蛋撻（聽不清楚）和脆皮整雞（聽不清楚）引起了極大的轟動。同時，我們正在簡化操作以支援這些選單創新。同樣的策略也適用於必勝客。

In December, we launched a brand-new menu with delicious new products while streamlining operations. For example, the Golden Salty Egg Chicken Pizza, crafted with our existing ingredients instantly became a popular choice. We also lowered prices on several of our iconic products while protecting margins. Our value for money communication is now more straightforward and compelling. Customers love our new menu, and in quarter four, Pizza Hut achieved the best same-store transaction growth in 2024.

12月，我們推出了全新的菜單和美味的新產品，同時精簡了營運。例如，利用我們現有的食材精心製作的黃金鹹蛋雞肉披薩立即成為了受歡迎的選擇。我們也在保護利潤率的同時降低了幾種標誌性產品的價格。我們的金錢價值溝通現在更加直接和引人注目。顧客喜歡我們的新菜單，第四季度，必勝客實現了 2024 年最佳同店交易成長。

Before we turn to Q&A, I would like just to recap the three key takeaways from today. First, we achieved record-breaking results in 2024 from top line to bottom line. KFC remains our key growth engine and profit contributor. Pizza Hut has made significant progress, transforming in every aspect and feels to me as though it has reached an inflection point. Second, our dual focus on operational efficiency and continuous innovation has made our business more resilient and competitive, positioning us for long-term sustainable growth.

在我們進入問答環節之前，我想回顧一下今天的三個關鍵要點。首先，我們在2024年從營隊收到淨利都取得了破紀錄的成績。肯德基仍然是我們主要的成長引擎和利潤貢獻者。必勝客取得了長足的進步，各個方面都在發生變革，我覺得它已經到達了一個轉折點。第二，我們對營運效率和持續創新的雙重關注，使我們的業務更具彈性和競爭力，為我們實現長期永續成長奠定了基礎。

Lastly, we remain committed to both sustainable growth and capital returns to shareholders. We are on track to return $4.5 billion to shareholders from 2024 through 2026. The average annual amount represents around 9% of our market cap. This quarter, we are stepping up dividends by 50%.

最後，我們仍然致力於永續成長並向股東提供資本回報。我們預計在 2024 年至 2026 年期間向股東返還 45 億美元。平均年金額約占我們市值的 9%。本季度，我們將股利提高 50%。

With that, I will pass it back to Florence.

說完這些，我就將它交還給佛羅倫斯。

Thanks, Joey. (Event Instructions). Operator, please start the Q&A.

謝謝，喬伊。（活動說明）。接線員，請開始問答。

(Operator instructions)

（操作員指令）

Michelle Cheng, Goldman Sachs.

高盛的 Michelle Cheng。

Hi Joey, Adrian congrats again for the very solid results. And understand the consumption environment is still quite fluid. So I would like to take a chance to hear your observation on the competitive landscape. So we indeed hear some companies who are slowing down the expansion and even they are starting to withdraw some of the promotion activities. And we noticed that KFC actually started to raise the price early of the year.

嗨，喬伊，阿德里安，再次祝賀你取得了非常堅實的成績。並且了解消費環境仍然相當不穩定。因此，我想藉此機會聽聽您對競爭格局的看法。因此，我們確實聽到一些公司正在放慢擴張的步伐，甚至開始撤回一些促銷活動。我們注意到，肯德基其實從今年初就開始漲價了。

So are we seeing the competitive landscape improving? And also, we see more opportunities to further accelerate, penetrate expanding our market share. So it will be great to hear your insights.

那麼我們是否看到競爭格局正在改善？此外，我們還看到了更多進一步加速、滲透和擴大市場份額的機會。我很高興聽到您的見解。

Thank you, Michelle. We do see some rationalization of marketing promotion and also a little bit of a price increase, including ourselves. So I think that is healthy because very modest price increase and the rationalization of the promotion, they do help to manage the cost pressure.

謝謝你，米歇爾。我們確實看到行銷促銷有一些合理化，價格也稍微上漲了，包括我們自己。所以我認為這是健康的，因為適度的價格上漲和促銷的合理化確實有助於控製成本壓力。

So that is sort of the overall what we are observing. However, most importantly, I think, for us, we know what our focus and maybe I'll take this time to just really highlight the few things that Adrian and I will both make in our opening remarks earlier.

這就是我們觀察到的整體情況。然而，我認為，對我們來說，最重要的是，我們知道我們的重點是什麼，也許我會利用這段時間來真正強調阿德里安和我之前在開場白中提到的幾件事。

Obviously, our hardware in Pizza Hut for change, let me start with Pizza Hut. We have done something right because we actually use the word inflection point for this quarter because we really have seen every aspect of the business has been transformed in a very positive way. The results speak for itself. Very nice improvement of the same-store sales, 4%, and then the OP improvement is solid. And then the net new store opening is 412 this year, 2024.

很明顯，我們必勝客的硬體發生了變化，我先從必勝客說起。我們做對了一些事情，因為我們實際上用轉折點這個詞來形容這個季度，因為我們確實看到業務的各個方面都發生了非常積極的轉變。結果不言而喻。同店銷售額成長非常可觀，達到 4%，且營業利潤成長也很穩健。今年（2024年）淨開設新店的數量將為 412 家。

It's the best net new store in the last 10 years really, and still, the breakeven is two to three years. And the breakthrough of the two business -- of the business model, one is just to become even more mass market, which has been our goal in the last many years with the introduction of additional product and lowering the price. And then the second breakthrough is the WOW. So a very nice result with very clear growth drivers. So we are at the inflection point for Pizza Hut.

這確實是過去 10 年來最好的淨新店，而且損益平衡仍需要兩到三年。這兩個業務——商業模式的突破，一是更面向大眾市場，這是我們多年來透過推出更多產品和降低價格所實現的目標。第二個突破就是WOW。因此，這是非常好的結果，成長動力也非常明確。所以，我們正處於必勝客的轉捩點。

For KFC, it's a very big business already, but yet we still see quarter four and ongoing strong momentum and performance in three ways. One is we continue to widen the offering in terms of price point, increasing the entry price point, but also higher ticket average, such as whole chicken. And then also, secondly, is the KCOFFEE improvement. It's 30% growth for KCOFFEE alone, and that's very, very nice. And then the delivery, so delivery is not only one quarter, it's 10 years of double-digit increase.

對於肯德基來說，這已經是一項非常大的業務，但我們仍然看到第四季度將在三個方面持續保持強勁的發展勢頭和表現。一是我們持續拓寬產品的價格範圍，提高入門價位，同時也提高平均票價，例如整隻雞。其次是 KCOFFEE 的改進。僅KCOFFEE一項就增長了30％，這非常非常好。然後是交付量，交付量不只是一個季度的，而是10年的兩位數成長。

And net-net, for both business, just to do another health check is -- the same-store transaction growth is -- it's nice and healthy on the eighth quarter of such. So with all this happening, we are capturing incremental business and hopefully, a little bit of market share. But with that said, Michelle, it's still a very big market. And our market share, relatively speaking, is still very small, even though we are the biggest player in the market. And there's still a lot of the opportunity for us to expand the business, have more market share by going to lower-tier city and going for the incremental franchisees store, et cetera, et cetera. Thank you, Michelle.

對於這兩項業務而言，再做一次健康檢查就是，第八季度的同店交易成長良好且健康。因此，隨著這一切的發生，我們正在獲得增量業務，並希望獲得一點市場份額。不過話雖如此，米歇爾，這仍然是一個非常大的市場。儘管我們是市場上最大的參與者，但相對而言，我們的市場份額仍然很小。我們仍有許多機會擴大業務，透過進入低線城市和增加特許經營店來獲取更多的市場份額，等等。謝謝你，米歇爾。

Thank you, Joey for the explanation and congrats again.

謝謝喬伊的解釋，再次恭喜。

Chen Luo, Bank of America.

陳羅，美國銀行。

Congrats again on the results. So my question is focused on the new store expansion. We also noticed that; A, we have opened more and more smaller stores; and B, we are also expanding to more and more to the lower tier cities. And number three, we are now shifting from equity store-focused model to a hybrid model with more and more franchise stores to be opened in the next few years? And what's the implication from these changes?

再次恭喜你取得的成績。所以我的問題集中在新店擴張。我們也注意到； A、我們開了越來越多的小店； B，我們也在向越來越多的低線城市擴張。第三，我們現在正從以股權店為中心的模式轉向混合模式，未來幾年將開設越來越多的特許經營店？這些變化意味著什麼？

For example, if you look at the second half numbers of last year, so our net store opening growth was around low teens. But then if you look at the revenue contribution from new stores, it should be around 5% for Q4 and about 6% for second half. And meanwhile, our franchise stores as a percentage of total net new stores increased to about 33% versus only teens in the first half.

例如，如果你看看去年下半年的數據，我們的淨店開幕成長率大約在百分之十幾。但如果你看看新店的營收貢獻，第四季應該在 5% 左右，下半年應該在 6% 左右。同時，我們的特許經營店佔新店總數的比例從上半年的百分之十幾上升到約 33%。

So with all these things in mind, is it fair to say that the near-term algo in terms of the revenue contribution from new store opening in the coming few quarters could be just around 5% or 6%, similar to second half of last year due to smaller stores and more and more expansion into lower tier cities as well as the franchise stores? I hope my answer is -- my question is clear.

那麼，考慮到所有這些因素，是否可以說，由於門市規模較小且越來越多地擴張到二三線城市以及特許經營店，未來幾個季度新店開業對收入的貢獻短期內可能僅為 5％或 6％ 左右，與去年下半年類似？我希望我的答案是──我的問題是清楚的。

Thank you, Luo Chen. I'll address your question of the new store and franchise store and then Adrian probably can help elaborate a bit in terms of relationship of the store number versus the revenue contribution. So I mean, (inaudible), we are pursuing new focus on both returning a lot of capital to the shareholder and, at the same time, pursuing high growth.

謝謝你，羅晨。我將回答您關於新店和特許經營店的問題，然後 Adrian 可能可以就商店數量與收入貢獻之間的關係稍微詳細說明一下。所以我的意思是，（聽不清楚），我們正在追求新的重點，既要向股東返還大量資本，又要追求高成長。

So we have addressed the capital allocation already in our opening remarks. So on the new store opening area, you can see that we just continue to be very aggressive with that because as I answered my question to Michelle earlier, there's still a lot of opportunity for us to open store, both in the top-tier city and lower-tier city.

我們在開場白中已經討論了資本配置問題。因此，在新店開設方面，你可以看到我們繼續積極進取，因為正如我之前回答米歇爾的問題一樣，我們仍然有很多開店的機會，無論是在一線城市還是二線城市。

And the strategy needs to be slightly different, but we see that opportunity. And then the lower-tier city right now is a big focus because even we observed the trading in the last year or even last quarter, lower-tier city is still doing better.

策略需要略有不同，但我們看到了這個機會。目前，低線城市是我們關注的重點，因為即使我們觀察了去年甚至上個季度的交易，低線城市的表現仍然更好。

So we'll continue to do that. But it does require a different model, for example, lower investment, smaller menu simpler operation, but net-net, the criteria is we still want a two year payback for the stores across all city tiers and for KFC and two to three years for Pizza Hut. As long as we can achieve that, we'll continue our journey to open more store in top-tier city and lower-tier cities.

因此我們會繼續這樣做。但它確實需要不同的模式，例如更低的投資、更小的菜單、更簡單的操作，但淨收益的標準是，我們仍然希望所有城市線的門市和肯德基能在兩年內收回成本，必勝客能在兩到三年內收回成本。只要我們能夠實現這一目標，我們就會繼續我們的旅程，在一線城市和二線城市開設更多門市。

When it comes to the relationship between company-owned stores and franchisee stores, despite our accelerated franchisee store opening in the last year and particularly last quarter, the company-owned store still contribute to vast majority actually specifically 85% of our entire portfolio.

談到自營店和加盟店的關係，儘管我們去年，特別是上個季度加速了加盟店的開業，但自營店仍然占我們整個投資組合的絕大部分（實際上具體來說是 85%）。

So it's going to take a while for the franchise store to catch up even though we are catching up. So for the company owned stores, it does have very nice store economics. However, why we're accelerating the franchisee store because they're incremental. They are incremental in two areas.

因此，儘管我們正在追趕，但特許經營店仍需要一段時間才能趕上。因此對於公司自營商店而言，確實具有非常好的商店經濟效益。然而，為什麼我們要加速特許經營店的發展，因為它們是漸進式的。它們在兩個領域中不斷進步。

One is strategic location such as highway service center, college campus, hospitals, et cetera, et cetera. And secondly, they are in the lower tier city and remote areas as well. So both are incremental. And operationally, we can do it. Our team can do it.

一是戰略位置，如高速公路服務中心、大學園區、醫院等等。其次，他們也位於低線城市和偏遠地區。因此兩者都是增量的。從操作上來說，我們可以做到。我們的團隊可以做到。

And operationally, we have the appropriate store models such as KFC Small Town Mini for KFC. And then right now, the Pizza Hut WOW is very promising for the lower-tier city as well. So therefore, we are doing more. So it's a natural development of our company's capabilities.

並且在營運上，我們有適合肯德基的肯德基小鎮迷你店等門市模式。現在，必勝客 WOW 在低線城市也非常有前景。因此，我們正在做更多的事情。這是我們公司能力的自然發展。

And then I'll pause I'll let Adrian answer the relationship between the revenue and the stores.

然後我會暫停一下，讓阿德里安回答收入和商店之間的關係。

Thank you, Joey. So Luo Chen, you are exactly right that the size of the stores become smaller and smaller. And it's worth noting that even for the larger stores, in the first year of opening, the revenue tends to be smaller. Overall, our new store that opened this year enjoy a 50% to 60% of revenue compared to the mature stores.

謝謝你，喬伊。所以羅晨，你說的完全正確，商店的規模確實越來越小。值得注意的是，即使是規模較大的商店，開業第一年的收入往往也較小。整體來說，我們今年新開的店相對於成熟店來說，收入有50%到60%的提升。

So that's the first point. The second point is the store week also play a role here. So if keeping all else equal, and net new store growth rate is the same, the time at which we open the stores within the quarter will play a role in the system sales growth.

這是第一點。第二點是商店週在這裡也發揮作用。因此，如果其他所有條件相同，且新店淨成長率相同，我們在該季度開設新店的時間將對系統銷售成長產生影響。

So that -- I think these 2 points combined will address your question on the mathematical relationship there. And lastly, I think you asked the question over the next few quarters, what is our system sales growth guidance.

所以——我認為這兩點結合起來可以解答你關於其中數學關係的問題。最後，我想您會問接下來幾季我們的系統銷售成長預期是多少。

I think if overall macro situation is stable, as it is right now, we would, as you pointed out, enjoy a mid-single-digit growth of system sales this year in 2025. Obviously, new store only play a portion of the role here. It's important to note that SSSG is also important in deciding what is the ultimate system sales growth. So these two combined will contribute to the final figure of system sales growth. But at this point in time, we do expect mid-single digit growth for this year, 2025.

我認為，如果整體宏觀形勢穩定，就像現在這樣，那麼正如您所指出的，到 2025 年，我們的系統銷售額將實現中等個位數成長。顯然，新店在這裡只扮演了部分角色。值得注意的是，SSSG 對於決定最終的系統銷售成長也起著重要作用。因此，這兩者結合起來將有助於實現系統銷售成長的最終數字。但目前，我們確實預計 2025 年將實現中等個位數成長。

Thank you. That's very clear. Congrats again and also Happy Chinese New year.

謝謝。這非常清楚。再次恭喜並祝您新年快樂。

Thank you. See you.

謝謝。再見。

Anne Ling, Jeffries.

安妮凌，杰弗里斯。

Hello. Thank you very much for taking my question. Just one question regarding the TA. So I understand that the same-store sales growth, the decline actually narrowed then like if we take a look at the breakdown, TA is still negative, but however, we have a very strong TC to offset this. So my question is, when do you think that this TA will start to turn positive, or Yeah. So I think that's the key question that I have, especially for KFC. Thanks.

你好。非常感謝您回答我的問題。關於 TA，我只有一個問題。因此，我了解到同店銷售額成長，降幅實際上有所收窄，如果我們看一下細目，TA 仍然為負，但是，我們有非常強大的 TC 來抵消這一點。所以我的問題是，您認為這個 TA 什麼時候會開始轉為積極，或者是的。所以我認為這是我的關鍵問題，特別是對於肯德基而言。謝謝。

Thank you, Anne. So our TA trend is basically consistent with our intended strategy to drive traffic. And as you point out, we continue to drive same-store transaction growth, it's the eighth conserve quarter, and that allow us to grow our business in underserved market segment, which is working. And at the same time, it's important to note that while we are doing that, we are able, at the same time, protect the margin as it show in the quarter four margin, restaurant margin or OP margin both actually improved because our TA strategy is also aligned with our dual focus on operational efficiency and innovation. And then answering your question about our plan going forward.

謝謝你，安妮。所以我們的TA趨勢與我們預期的流量驅動策略基本上一致。正如您所指出的，我們繼續推動同店交易量成長，這是連續第八個季度保持成長，這使我們能夠在服務不足的細分市場中發展業務，這是行之有效的。同時，值得注意的是，在我們這樣做的同時，我們能夠保護利潤率，正如第四季度的利潤率所顯示的那樣，餐廳利潤率或營業利潤率實際上都有所提高，因為我們的 TA 策略也與我們對營運效率和創新的雙重關注相一致。然後回答您關於我們未來計劃的問題。

Well, in the long term, we take a balanced approach to maintain a steady TA. For example, our quarter four TA, which is KFC, would be RMB38 again is still higher than the TA pre-pandemic. In the short term, our goal of the TA is to remain relatively stable. Our quarter four TA RMB38 gain is stable versus quarter three. And our focus is on value and then also widening the price range and also to drive the traffic and it's working.

嗯，從長遠來看，我們採取平衡的方法來維持穩定的 TA。例如，我們第四季的技術評估（肯德基）將再次達到人民幣38元，仍高於疫情前的技術評估。短期內，我們的TA目標是維持相對穩定。我們第四季的技術評估收益為38元人民幣，與第三季相比保持穩定。我們的重點是價值，然後擴大價格範圍，並推動流量，而且它正在發揮作用。

And we don't have any material plan to change our approach even after the modest price increase back to December 2024. And for Pizza Hut, our strategy is to continue to drive the TA down to make it more mass market while improving the sales and the profit. Thank you, Anne.

即使價格在 2024 年 12 月小幅上漲之後，我們也沒有任何實質計劃來改變我們的方法。對於必勝客來說，我們的策略是繼續降低價格，使其更適合大眾市場，同時提高銷售和利潤。謝謝你，安妮。

Lillian Lou, Morgan Stanley.

摩根士丹利的 Lillian Lou。

Thanks a lot. Hi Joey, hi Adrian, congrats again. My question is more on margin. Obviously, I think the fourth quarter is another evidence of a very strong execution, efficiency and all around the operation management. And in particular, I think the payroll and the labor cost savings was quite significant. So trying to understand going forward in 2025 with all the cost project initiatives continuing, what are line items in particular are we seeing more chance or savings further? And what kind of overall margin improvement trend we can expect for 2025?

多謝。嗨，喬伊，嗨，阿德里安，再次恭喜你。我的問題更多與保證金有關。顯然，我認為第四季再次證明了我們非常強大的執行力、效率和全面的營運管理。特別是，我認為工資和勞動成本的節省相當可觀。因此，試圖了解在 2025 年所有成本項目計劃繼續進行的情況下，具體而言，哪些項目是我們是否看到更多機會或進一步節省？我們可以預期2025年的整體利潤率將呈現什麼樣的改善趨勢？

Thank you, Lillian. So let me try to address this question. Firstly, sales is an important factor to determine the margin for 2025. And I'll actually first -- take the conclusion first on the overall margin trend and then break it down for the different drivers. As to the conclusion, as I mentioned in the prepared remark, we look to keep the core margin for the full year relatively stable or even slightly improved year-over-year.

謝謝你，莉蓮。因此讓我嘗試解答這個問題。首先，銷售額是決定2025年利潤率的重要因素。我首先要對整體利潤趨勢得出結論，然後再根據不同的驅動因素進行分解。至於結論，正如我在準備好的評論中提到的，我們希望全年核心利潤率保持相對穩定，甚至比去年同期略有提高。

And by brand, we're committed to maintain a healthy restaurant margin for KFC and improving Pizza Hut restaurant margin in the mid- to long run. And then now I'll break it down into different drivers. Firstly, I'll discuss about COS.

從品牌角度而言，我們致力於在中長期維持肯德基的健康餐廳利潤率，並提高必勝客的餐廳利潤率。現在我將把它分解為不同的驅動因素。首先，我來討論一下 COS。

So continue to invest in value for money to drive incremental traffic and commodity price remained favorable, as I mentioned in the prepared remarks, in the near term, and we continued improvement -- continue to seek improvements through project Redeye initiatives, redesigning our product approach to optimize ingredient use. In term of our long-term guidance, we still aim to keep our (inaudible) at 31%, plus or minus 1%.

因此，繼續投資於物有所值的產品以推動增量流量和商品價格保持有利，正如我在準備好的發言中提到的那樣，在短期內，我們將繼續改進 - 繼續通過 Redeye 項目計劃尋求改進，重新設計我們的產品方法以優化成分的使用。就我們的長期指導而言，我們仍旨在將（聽不清楚）保持在 31%，上下浮動 1%。

But for the year of 2025, this ratio is likely to fall in the upper half of our guided range with some slight improvement year-over-year from 2024. So COS as a percentage of sales will slightly improve year-over-year, but it will fall in the upper half of our guided range. So that's on COS. In terms of COL, we will face some headwinds. So we are facing ongoing cost pressure from wage inflation, which over the years tend to be low single digit to mid-single digit.

但到 2025 年，這一比率可能會降至我們指導範圍的上半部分，並與 2024 年相比略有改善。因此，COS 佔銷售額的百分比將同比略有提高，但仍將處於我們指導範圍的上半部分。這就是 COS。在COL方面，我們將面臨一些阻力。因此，我們面臨著薪資通膨帶來的持續成本壓力，多年來薪資通膨往往維持在低個位數到中個位數的水平。

And then increase in our rider cost is also a challenge because the delivery mix will increase. But to clarify, the rider cost per ticket will go down, as we previously discussed about, but the increasing delivery mix will make the rider cost as a percentage of our sales increase.

同時，增加我們的乘客成本也是一個挑戰，因為配送組合將會增加。但需要澄清的是，正如我們之前討論的那樣，每張票的乘客成本將會下降，但配送組合的增加將使乘客成本占我們銷售額的百分比增加。

We continue to make every effort to drive operational efficiency to partially offset those cost pressures on COL, but overall, we do expect to face some headwind on COL as a percentage of sales. And then thirdly, coming to O&O. We do see much improvement from O&O from the past few years. If you compare 2024 from 2019 before the COVID times, there is a significant improvement in rental. Back then, the rental was around 10% of sales.

我們將繼續竭盡全力提高營運效率，以部分抵消 COL 的成本壓力，但總體而言，我們預計 COL 在銷售額中所佔比例將面臨一些阻力。第三，談到 O&O。我們確實看到過去幾年 O&O 取得了很大的進步。如果將 2024 年與 COVID 疫情爆發之前的 2019 年進行比較，會發現租金有顯著改善。當時，租金約佔銷售額的 10%。

Now as you know, it's below 9%, although we don't disclose the exact figures. Depreciations also meaningfully improved as a result of capital expenditure improvement. And also, we see a higher return on investment on advertising expenses. So advertising A&P expense have been improving over the past 5 years. And then speaking of 2025, we will continue to look for opportunities to generate some savings in O&O., but the O&O cost as a percentage of revenue is likely to be stable year-over-year from 2024 to 2025.

如您所知，儘管我們沒有透露具體的數字，但這一比例低於 9%。由於資本支出的改善，折舊也得到了顯著改善。而且，我們看到廣告費用的投資報酬率更高。因此，過去 5 年來，廣告 A&P 費用一直在改善。談到 2025 年，我們將繼續尋找機會在 O&O 方面節省一些開支，但從 2024 年到 2025 年，O&O 成本佔收入的百分比可能會保持逐年穩定。

The opportunities that I mentioned include the AMP opportunities, particularly for Pizza Hut because the AMP as a percentage of sales for Pizza Hut is still slightly higher than KFC. So we do see some opportunities there. But for some other lines within the O&O, we also feel some pressure. So overall, for occupancy other costs is likely to be stable. And lastly, coming to AI, as I mentioned in the prepared remarks, we target a full year G&A expense of presented sales to slightly decrease, but we do expect some quarterly fluctuations.

我提到的機會包括 AMP 機會，特別是對於必勝客來說，因為必勝客的 AMP 佔銷售額的百分比仍然略高於肯德基。因此我們確實看到了一些機會。但對於O&O內部的一些其他線路，我們也感受到了一些壓力。因此整體而言，入住的其他成本可能保持穩定。最後，談到人工智慧，正如我在準備好的發言中提到的那樣，我們的目標是全年的一般及行政管理費用與所列銷售額之比略有下降，但我們確實預計會出現一些季度波動。

So that hope gives you some more color on our margin. And in a nutshell, the conclusion is the core OP margin will remain relatively stable or slightly improved year-over-year.

因此，我們希望能夠為我們的利潤帶來更多的色彩。簡而言之，結論是核心營業利潤率將保持相對穩定或同比略有提高。

Thank you, Adrian. One short comment regarding the cost of labor. In terms of approach, specifically, what exactly have we been doing mainly focusing on a few things, simplification, automation, centralization, digitization. So all these activities in the stores are going through these few approach to improve the efficiency of COL. So exactly what are we doing?

謝謝你，阿德里安。關於勞動力成本的一個簡短評論。在方法方面，具體來說，我們主要做了一些事情，簡化、自動化、集中化、數位化。因此，商店中的所有這些活動都透過這幾種方法來提高 COL 的效率。那我們到底在做什麼？

Well, for example, generative AI, we'll be using generative AI to screen millions of resume and then also forecasting, et cetera, and that certainly helped save the labor cost. And we're also outsourcing some activities in the stores to the Central Kitchen and not only save the COL, also change the profile of the staff number in the store, which we're going to share more in annual report later on.

例如生成式人工智慧，我們將使用生成式人工智慧來篩選數百萬份履歷，然後進行預測等等，這無疑有助於節省勞動成本。我們還將商店中的一些活動外包給中央廚房，這不僅節省了 COL，還改變了商店中員工數量的分佈情況，我們將在以後的年度報告中分享更多內容。

So specifically, that's what we have been doing, and it's been ongoing and particularly a focus since project Fresh Eye last year as well. But it will be ongoing. Thank you, Lillian.

具體來說，這就是我們一直在做的事情，而且它一直在進行，特別是自去年的 Fresh Eye 計畫以來一直是關注的焦點。但這一進程將會持續下去。謝謝你，莉蓮。

Thanks a lot, Joey and Adrian. That's very detailed and very helpful. Thank you again.

非常感謝，喬伊和阿德里安。這非常詳細並且非常有幫助。再次感謝您。

Thank you.

謝謝。

Christine Peng, UBS.

瑞銀的 Christine Peng。

Thank you management for the opportunity to raise the question. So I have a very quick question regarding Pizza Hut WOW. I think Adrian probably mentioned earlier that Pizza Hut WOW, the capital return is actually pretty good compared with the traditional Pizza Hut store. But I just want to get more clarity in terms of the store economics such as unit revenue margin? Is that your though that we can better understand the potential of this business new format going forward? Thank you.

感謝管理層給予我們提出這個問題的機會。我有一個關於必勝客 WOW 的簡短問題。我覺得 Adrian 之前可能有提到過，Pizza Hut WOW，跟傳統的必勝客門市相比，資本報酬率其實還是相當不錯的。但我只是想更清楚地了解商店經濟狀況，例如單位收入利潤率？您是否認為這樣我們才能更了解這種新商業模式未來的潛力？謝謝。

So thank you, Christine. Indeed, as I mentioned in the prepared remarks, Pizza Hut WOW, we do observe some pretty encouraging progress, but I need to caution that it's a new model that's only like a seven months old. It takes time for any new model to become mature. And the right word we are using -- we were using in the prepared remarks was the modest maturing as in the process of maturing.

所以謝謝你，克里斯汀。確實，正如我在準備好的評論中提到的，必勝客哇，我們確實觀察到了一些相當令人鼓舞的進展，但我需要提醒的是，這是一個只有七個月大的新模式。任何新模式的成熟都需要時間。我們在準備好的發言中使用的正確字詞是適度成熟，就像成熟的過程一樣。

So we do observe some early signs of significant outperformance on the dine-in part of the sales and the delivery part of sales, it's improving since the first Pizza Hut WOW model opened in May. But still, there is a slight gap versus the regular Pizza Hut model in terms of delivery sales.

因此，我們確實觀察到店內銷售部分和外賣銷售部分錶現顯著優異的早期跡象，自 5 月份第一家必勝客 WOW 模式開業以來，情況一直在改善。但在外送銷售方面，與普通的必勝客模式相比仍存在些許差距。

And in terms of cost comp margin it's always our philosophy, the transaction comes first and then sales and the margin. So margin, we're still in the process of fixing the margin. Currently, in terms of the 200 WOW stores, the COS and COL for many of those stores become broadly on par versus the regular Pizza Hut model as percent of sales. But the overall margin, there is still a slight gap versus the main model. So we are still in the process of fixing those.

就成本補償利潤率而言，我們的理念始終是先交易，然後才是銷售和利潤。因此，我們仍處於修復利潤的過程中。目前，就 200 家 WOW 門市而言，其中許多門市的 COS 和 COL 的銷售額百分比與普通必勝客模式大致相同。但整體利潤率與主力機型相比還是稍有差距。因此我們仍在修復這些問題。

So for the year, for 2025, the focus here on WOW model is really to, firstly, further improve the delivery sales; and secondly, to fix the margins. Obviously, over the past seven months, over the 200 WOW stores, a vast majority or almost all of those stores are flipping from the regular Pizza Hut models. We only opened the first new Pizza Hut Wow store in December. This year, we'll test opening new Pizza Hut WOW stores, especially we do see some good potential in lower-tier cities and in a highly competitive trade zones where the consumers do seek value for money. So it's a new model again, and then it takes time for the model to mature, but we do have high hopes excitement on this model.

所以對於 2025 年來說，WOW 模型的重點其實是先進一步提高交付銷售額；其次，固定邊距。顯然，在過去七個月中，在 200 家 WOW 門市中，絕大多數或幾乎所有門市都是從常規必勝客模式轉型而來的。我們去年 12 月才新開了第一家 Pizza Hut Wow 店。今年，我們將嘗試開設新的必勝客 WOW 店，尤其是我們確實看到了在低線城市和競爭激烈的貿易區的良好潛力，因為這些地區的消費者確實追求物有所值。所以這又是一個新模型，然後模型需要時間來成熟，但我們對這個模型寄予厚望。

Thank you, Adrian.

謝謝你，阿德里安。

Ethan Wang Wise, CLSA.

里昂證券的 Ethan Wang Wise。

Thank you. Good evening, Joey, Adrian. Happy Spring Festival and just a follow-up question on Adrian’s previous comment on the headwind on labor cost. So Adrian you mentioned, labor cost ticket delivery has been down, but because delivery as a percentage of the sales going up, so that may move to some headwinds.

謝謝。晚上好，喬伊，阿德里安。春節快樂，我只是想就 Adrian 之前關於勞動成本逆風的評論提出一個後續問題。所以阿德里安，你提到，機票配送的勞動成本一直在下降，但是由於配送佔銷售額的百分比正在上升，所以這可能會帶來一些阻力。

Just wanted to understand more on that point, (inaudible) actually the sales of percent of total revenue has been going up last year, but you are able to achieve lower labor cost per store, that's quite impressive. So why is that not the case going into 2025, I just want to understand it?

只是想更多地了解這一點，（聽不清楚）實際上，去年銷售額佔總收入的百分比一直在上升，但你能夠降低每個商店的勞動力成本，這非常令人印象深刻。那為什麼到 2025 年情況就不會如此了，我只是想了解一下？

Thank you, Ethan. So just to offer some more color here. you are right in pointing out that the 2024, we successfully managed to improve our operational efficiency significantly to offset the impact of delivery sales mix increase on the COL. So as a natural consequence, that will be a high base for us. That will be a tough lapping for us.

謝謝你，伊森。這裡只是提供更多顏色。您指出的很對，到 2024 年，我們成功大幅提高了營運效率，以抵消交付銷售組合增加對 COL 的影響。因此，自然而然地，這對我們來說將是一個很高的基礎。對我們來說這將是一場艱難的比賽。

As you know, the project Fresh Eye actually kicked off in late 2023. So the full year, there is an impact on 2024. And the COL is one of the key areas of project Fresh Eye in terms of efficiency enhancement and productivity improvement. So with this tough lapping and tough base, for 2025, I just gave some pretty transparent guidance on how the COL as percent of salesmay evolve. First, I'll break down into two parts, just offer some more color.

如您所知，Fresh Eye 計畫實際上於 2023 年底啟動。因此全年都會對 2024 年產生影響。而COL正是Fresh Eye計畫提升效率、改善生產力的重點領域之一。因此，透過這種嚴格的研磨和嚴格的基礎，對於 2025 年，我只是對 COL 佔銷售額的百分比如何演變給出了一些非常透明的指導。首先，我將分成兩個部分，只提供一些更多細節。

The first part is the non-rider part, right? The non-rider part, obviously, we do face a low to mid-single-digit wage inflation, but we will make every effort to try to further enhance our operational efficiency to hopefully offset that wage inflation.

第一部分是非騎士部分，對嗎？對於非騎手部分，顯然，我們確實面臨低至中等個位數的薪資通膨，但我們將盡一切努力進一步提高我們的營運效率，以期抵消薪資通膨。

So we do look at the non-rider part of COL to be broadly stable as a percentage of sales for the full year 2025. And then the second part is obviously the delivery part. In terms of the delivery cost per ticket, it will be lower year-over-year from 2024 to 2025.

因此，我們確實預計到 2025 年全年，COL 的非騎士部分銷售額佔比將大致保持穩定。然後第二部分顯然是交付部分。就每張票的運送成本而言，2024年至2025年將逐年下降。

There are a lot of efficiency measures there. Notably, the platform riders, which is one of the key initiatives, improve the cost and, at the same time, the quality of service still improving. As we mentioned in one of our previous earnings release, KFC currently already enjoy around half of the stores with the platform riders doing the delivery. And Pizza Hut is having a lower percentage. And obviously, there is room to improve on both this penetration for platform riders in our stores.

那裡有很多效率措施。值得注意的是，作為重點舉措之一的平台騎士改善了成本，同時服務品質還在不斷提升。正如我們在先前的收益報告中提到的那樣，肯德基目前已經擁有大約一半的門市由平台騎士進行配送。而必勝客的比例較低。顯然，我們商店的平台騎士的滲透率還有提升空間。

So that's some of the drivers to drive down the per ticket cost on delivery. But the increase in delivery mix as a percentage of sales is probably more than the savings we can generate from there. So all in all, the delivery part of the COL as a percent of sales may likely slightly increase year-over-year. So overall, if you add these two together, one is probably stable, the other one is slightly increased, we do face some headwinds there on COL. But as I mentioned, we do have some other margin initiatives, for instance, COS.

這就是降低每張票運送成本的一些驅動因素。但配送組合佔銷售額的百分比的成長可能超過了我們從中所能產生的節省。因此，總體而言，COL 的交付部分佔銷售額的百分比可能比去年同期略有增加。因此總的來說，如果將這兩者加在一起，一個可能是穩定的，另一個則略有增加，我們在 COL 上確實面臨一些阻力。但正如我所提到的，我們確實有一些其他的利潤計劃，例如 COS。

Hopefully, it will be slightly better year-over-year for both the brands and for Yum China and O&O will be broadly stable. All in all, as a result, the restaurant margin for KFC, we hope to maintain the healthy level of restaurant margin year-over-year. For Pizza Hut, we look to improve it over the mid- to long run, and hopefully slightly improve it for this year as well. And for Yum China as a whole, for 2025, the core OP margin, we expect that to be stable or slightly increase year-over-year. Thank you.

希望這兩個品牌的業績年增會略有好轉，百勝中國和線上線下業務也能基本保持穩定。總而言之，對於肯德基的餐廳利潤率，我們希望能夠維持年比健康的餐廳利潤率水準。對於必勝客，我們希望在中長期內對其進行改進，並希望今年也能略有改善。對於百勝中國整體而言，我們預計到 2025 年，核心營業利潤率將保持穩定或較去年同期略有成長。謝謝。

Got it. Thank you, Adrian and congratulations. Ending the year on a strong note, especially with margin. Thank you.

知道了。謝謝你，阿德里安，恭喜你。以強勁的勢頭結束這一年，尤其是利潤方面。謝謝。

Thank you.

謝謝。

Sijie Lin, CICC.

林思傑，中金公司。

Thank you for the chat for the last question. And I have one question. So our pricing strategy is very clear, both for KFC and Pizza Hut. So I just want to further evaluate our actions. So for Pizza Hut, it has been going through promotion activities from December last year to February this year. So how does this affect same-store sales and margin?

感謝您對最後一個問題的回答。我有一個問題。所以我們的定價策略非常明確，無論是肯德基還是必勝客。所以我只是想進一步評估我們的行動。所以對於必勝客來說，從去年12月到今年2月，它一直在進行促銷活動。那麼這對同店銷售額和利潤有何影響？

And also, we see that the TA for Pizza Hut has already reached [78] in Q4. So do you think this level has already reached our expectation? Or you still have some room to trade down in the future? Thank you.

而且我們也看到必勝客的 TA 在第四季已經達到 [78]。那麼您覺得這個水準已經達到我們的預期了嗎？或者說未來你還有一定的降價空間？謝謝。

Thank you, Sijie. For Pizza Hut, our goal actually will continue to drive down the TA for the pizza model. It's very impressive the brand team has done to move it to 78, but we see room to go that slightly further, but above KFC, obviously, and also about Pizza Hut WOW, then I think we'll be happy. In terms of the pizza pricing and promotion, let's take the new menu that we just launched.

謝謝你，思傑。對於必勝客來說，我們的目標實際上是繼續降低披薩模式的TA。品牌團隊將其提升至 78 位，這令人印象深刻，但我們認為還有進一步提升的空間，但顯然要高於肯德基，並且也要高於必勝客 WOW，那麼我想我們會很高興。就披薩的定價和促銷而言，我們以剛推出的新菜單為例。

We launched 40 new products in the December 2024 new menu, and then we lowered the list price of about 30 iconic products for the Pizza Hut model, starting from RMB9.9 for the drinks and desert, So it's very attractive.

我們在2024年12月的新菜單中推出了40種新產品，然後我們為必勝客模式降低了約30種標誌性產品的標價，從飲料和甜點的9.9元人民幣起，所以非常有吸引力。

And then in the price reduction, some item, very iconic, for example, escargot, we halved the price. However, here's the little, very important point. We kept the margin neutral through the innovation. So we are very happy that we found ways to deliver our iconic product, which -- with much better value for money for the customer and also protect the margin. And the communication becomes very straightforward as well.

然後在降價過程中，我們將一些非常代表性的商品，例如蝸牛，的價格減半。然而，這裡有一個非常重要的小點。我們透過創新保持利潤率中立。因此，我們很高興找到了提供我們標誌性產品的方法，它為客戶帶來了更高的性價比，同時也保護了利潤。而且溝通也變得非常直接。

No need to go through the very sophisticated promotional pricing, we just go straight to the very attractive menu price, and we still prepare the margin. So that's what we have been doing, and customers resonate very well with that. And thus, we have observed a very nice transaction growth.

不需要經過非常複雜的促銷定價，我們直接給出非常有吸引力的菜單價格，而且我們還預留了利潤。這就是我們一直在做的事情，客戶也對此反應良好。因此，我們觀察到非常好的交易成長。

So we'll continue to do that. So I'm glad that we -- our team took a very bold move with that 30iconic product price reduction and still protect the margins. So we'll continue to find new ways to serve our customers even better going forward. Thank you.

因此我們會繼續這樣做。因此我很高興我們——我們的團隊採取了非常大膽的舉措，將 30% 的標誌性產品降價，同時仍然保護了利潤率。因此，我們將繼續尋找新的方式，為客戶提供更好的服務。謝謝。

Thank you, Joey, and congrats again.

謝謝你，喬伊，再次恭喜你。

Thank you.

謝謝。

Thanks, Joey. Thanks, Adrian. Thank you, everyone, for joining the call today. For further questions, please reach out through the contact information in our earnings release and on our website.

謝謝，喬伊。謝謝，阿德里安。感謝大家今天的電話會議。如有其他問題，請透過我們的收益報告和網站上的聯絡資訊與我們聯絡。

Thank you.

謝謝。

Thank you, all.

謝謝大家。

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.

今天的電話會議到此結束。感謝大家的參與。現在您可以斷開線路了。謝謝。