Yum China Holdings Inc (YUMC) 2025 Q1 法說會逐字稿

(Operator Instructions)

（操作員指示）

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（技術難度）

Thank you for joining and China's first quarter 2025 earnings conference call. On today's call, our CEO, Ms. Joey Wat; and our CFO, Mr. Adrian Ding. I'd like to remind everyone that our earnings call and investor materials contain forward-looking statements, which are subject to future events and uncertainties.

感謝您參加中國2025年第一季財報電話會議。在今天的電話會議上，我們的執行長 Joey Wat 女士；以及我們的財務長 Adrian Ding 先生。我想提醒大家，我們的收益電話會議和投資者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 cautionary statements in our earnings release on the risk factors included in our filings with the SEC.

實際結果可能與這些前瞻性陳述有重大差異。所有前瞻性陳述都應與我們向美國證券交易委員會提交的文件中涉及的風險因素的收益報告警示性陳述一起考慮。

This call also includes certain non-GAAP financial measures. You should carefully consider the comparable GAAP measures. A 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.

本次電話會議也包括某些非公認會計準則財務指標。您應該仔細考慮可比較的 GAAP 指標。非 GAAP 和 GAAP 指標的對帳表已包含在我們的獲利報告中，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 PowerPoint presentation on our website. Please note that during today's call, all year-over-year growth results exclude the impact of foreign currency, unless, otherwise noted.

您也可以在我們的網站上找到本次電話會議的網路直播和 PowerPoint 簡報。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.

現在我想把電話轉給百勝中國執行長屈翠容（Joey Wat）。

Hello, everyone. And thank you for joining us. In quarter one, we delivered another solid set of results. Our dual focus on operational efficiency and innovation led to improvements in both our top and bottom lines.

大家好。感謝您加入我們。在第一季度，我們又取得了一系列可喜的成績。我們對營運效率和創新的雙重關注使我們的營收和利潤均提高了。

We achieved first quarter record highs in revenue, net income, and diluted EPS. Our same store sales index advanced to 100% of prior year level for the first time since the first quarter of 2024 for both KFC and Pizza Hut. Same-store transactions have grown for nine consecutive quarters.

我們第一季的營收、淨收入和稀釋每股盈餘均創下歷史新高。我們的同店銷售指數自 2024 年第一季以來首次升至上年水準的 100%，肯德基和必勝客都是如此。同店交易額已連續九季成長。

As our top line expanded, our margins also improved. Restaurant margin expanded by 100 basis points year over year. As a result, our operating profit grew by 8% and diluted EPS increased by 10%. This performance underscores our team's diligent efforts and the effectiveness of our strategy.

隨著我們的營業收入不斷擴大，我們的利潤率也隨之提高。餐廳利潤率年增100個基點。結果，我們的營業利潤成長了 8%，稀釋每股收益成長了 10%。這項業績凸顯了我們團隊的勤奮努力和我們策略的有效性。

Last quarter, I mentioned that I felt Pizza Hut had reached an inflection point. I'm pleased to report that we've been able to sustain the positive momentum. In quarter one, we achieved notable improvements in both same-store sales index and margins.

上個季度，我提到我覺得必勝客已經到達了一個轉捩點。我很高興地報告，我們已經能夠保持積極的勢頭。第一季度，我們的同店銷售指數和利潤率都取得了顯著的提升。

Pizza has 2025 new menu, further enhance value for money proposition and mass market positioning, driving significant traffic growth. It also enabled simpler operations contributing to the restaurant margin improvement in Q1.

2025年Pizza推出全新菜單，進一步提升性價比主張與大眾市場定位，帶動客流量大幅成長。它還簡化了運營，有助於提高第一季餐廳的利潤率。

KFC remains resilient fortress, achieving solid growth and profitability through both good times and bad. In Q1, KFC system sales grew by 3% and as restaurant margin expanded to 19.8%. In Q1, we also opened 300 KCOFFEE cafes, reaching a total of 1,000 locations nationwide.

肯德基依然是堅韌的堡壘，無論在順境或逆境中都實現了穩健的成長和獲利。第一季度，肯德基系統銷售額成長 3%，餐廳利潤率擴大至 19.8%。第一季度，我們也開了300家KCOFFEE咖啡館，全國門市總數達到1,000家。

Let me now turn the call over to Adrian to discuss our results in detail. However, I will share additional color on our strategies.

現在，讓我將電話轉給 Adrian，詳細討論我們的結果。不過，我將分享更多關於我們策略的細節。

Thank you, Joey. Let me start with KFC. In the first quarter, KFC deliver solid sales and profit growth. We added 295 net new stores, bringing our total to 11,943 stores, new to a payback remain healthy at two years.

謝謝你，喬伊。讓我先從肯德基說起。第一季度，肯德基的銷售額和利潤均實現了穩健的成長。我們淨增 295 家新店，總數達到 11,943 家，新店投資回報在兩年內保持健康。

System sales increased 3% year over year. Same-store sales index advanced to 100% of prior year level for the first time since the first quarter of 2024, fueled by same-store transaction growth of 4%. We observe strong growth in smaller orders driven by wider price ranges, lower delivery fees and rapid growth in coffee.

系統銷售額較去年同期成長3%。受同店交易金額成長 4% 的推動，同店銷售指數自 2024 年第一季以來首次升至上年水準的 100%。我們觀察到，由於價格範圍擴大、配送費降低以及咖啡的快速成長，小額訂單呈現強勁成長。

The ticket average for quarter one was RMB40, 4% lower than the prior year period, similar to the trend in the second half of 2024. There may still be some short-term fluctuations, but we expect TA to be relatively stable over the long run.

第一季平均票價為 40 元人民幣，比去年同期下降 4%，與 2024 年下半年的趨勢相似。短期內可能仍會出現一些波動，但我們預期長期來看TA會相對穩定。

Despite a lower TA, restaurant margin improved by 50 basis points year-over-year to 19.8%. Operating profit grew 5% year over year to $386 million. We innovated by adding first twist to our classic menu items to excite customers and fulfill their changing needs.

儘管技術評估較低，但餐廳利潤率年增 50 個基點，達到 19.8%。營業利潤年增5%至3.86億美元。我們透過在經典菜單上添加新意進行創新，以激發顧客的興趣並滿足他們不斷變化的需求。

KFC launched a spicy flavor of Original Recipe Chicken, for the first time since we entered China in 1987. The classic taste pairs well with the exotic spicy flavor. Sales mix of Original Recipe Chicken increased 50% during the promotion period.

肯德基自1987年進入中國市場以來，首次推出原味雞丁香辣口味。經典的口味與異國風味的辛辣味道完美搭配。促銷期間，原味雞肉的銷售量增加了 50%。

We also introduced the Spicy Original Recipe Chicken Burger, which of course, comes with mashed potatoes. These innovative new products resonate well with our consumers, not just regionally but nationwide, attracting new traffic.

我們還推出了原味辣味雞肉漢堡，當然還有馬鈴薯泥。這些創新的新產品不僅在地區範圍內，而且在全國範圍內引起了我們消費者的共鳴，吸引了新的客流。

Serving bucket has been a Chinese New Year tradition for KFC. This year, we enhanced the Golden Bucket by including our popular whole chicken, making it even more ideal for sharing. To address the trend to smaller gatherings, we also offered a variety of smaller buckets. Total sales of our Chinese New Year buckets grew over 50% year over year.

提供桶裝食物已成為肯德基的農曆新年傳統。今年，我們在金桶中加入了廣受歡迎的整雞，使其更加適合分享。為了適應聚會人數減少的趨勢，我們也提供了各種小桶。我們的農曆新年桶總銷量年增超過50％。

Let's now move on to Pizza Hut. For four consecutive quarters, Pizza Hut has achieved significant progress, marked by sequential improvement in the same-store sales index and year-over-year margin expansion. Operating profit also grew 29% year over year in quarter one.

現在我們來談談必勝客。連續四個季度，必勝客取得了顯著的進步，同店銷售指數環比提升，利潤率同比增長。第一季營業利潤也較去年同期成長29%。

In quarter one, system sales increased 2% year over year. Same-store sales index advanced to 100% of prior-year level, also for the first time since the first quarter of 2024, up two percentage points versus quarter four last year.

第一季度，系統銷售額較去年同期成長2%。同店銷售指數升至去年同期的 100%，也是自 2024 年第一季以來的首次，比去年第四季上升了兩個百分點。

Same-store transactions grew substantially by 17% year over year, driven by rapid, delivery growth, increased popularity of pizzas below RMB50, and the successful launch of our new menu. The ticket average was RMB78, 14% lower year over year, consistent with our strategy and driven mainly by better value-for-money offered by our new menu.

受外送業務快速成長、50 元以下披薩越來越受歡迎以及新菜單成功推出的推動，同店交易額較去年同期大幅成長 17%。平均票價為人民幣 78 元，年減 14%，這與我們的策略一致，主要原因是我們的新菜單提供了更物有所值的服務。

Again, despite the lower TA, restaurant margins improved 190 basis points year over year. Our new menu allowed for simpler preparation at our stores. We also automated key kitchen processes.

儘管 TA 較低，但餐廳利潤率仍比去年同期提高了 190 個基點。我們的新菜單使得我們商店的準備工作變得更加簡單。我們也實現了廚房主要流程的自動化。

Additionally, Pizza Hut's all-you-can-eat campaign that took place in quarter one last year, was shifted to quarter two this year, and this accounted for nearly half of the year-over-year margin improvements. Pizza Hut has expanded to 3,769 stores with a net addition of 45 stores in quarter one. This number is lower than last year due to the timing of store openings and closures.

此外，必勝客去年第一季推出的「無限供應」活動今年已轉移到第二季度，佔了去年同期利潤率成長的近一半。必勝客門市數量已增至 3,769 家，第一季淨增 45 家。由於商店開業和關閉的時間安排，這一數字低於去年。

For the full year, we expect double digit percentage new store growth for Pizza Hut. The payback period for new stores remains healthy at two to three years.

我們預計必勝客全年新店數將達到兩位數的百分比成長。新店的投資回收期維持在兩至三年的健康水準。

Pizza Hut has made tremendous efforts to improve its menu and widen its addressable market. The new menu launch in December 2024, bolstered Pizza Hut's value-for-money perception and significantly boosted consumer traffic.

必勝客為改善菜單和擴大目標市場做出了巨大努力。2024 年 12 月推出的新菜單增強了必勝客的物有所值的認知，並顯著增加了消費者流量。

In March, we further upgraded the menu with new products such as expanded selection of Pizza Dough Burgers and more one-person meal options. For a limited time, consumers enjoyed our Super Supreme Pizza at just RMB39, half the regular price.

三月份，我們進一步升級了菜單，增加了新產品，例如擴大了披薩麵團漢堡的選擇範圍並增加了單人餐選擇。限時，消費者僅需 39 元人民幣（原價的一半）即可享用我們的超級至尊披薩。

Consumers love our flagship Super Supreme flavor. So we extended it from our pizza platform to other platforms such as burger, pasta, and rice.

消費者喜歡我們的旗艦超級至尊口味。因此，我們將其從披薩平台擴展到漢堡、義大利麵和米飯等其他平台。

Let me now go through our quarter one P&L. For the quarter one, system sales grew 2% year over year and same store sales index was 100% of prior year level. System sales growth was moderated this quarter for three reasons.

現在讓我來回顧一下我們第一季的損益表。第一季度，系統銷售額年增2%，同店銷售指數為去年同期的100%。本季系統銷售成長放緩有三個原因。

First, 2025, has one fewer business day as 2024 was a leap year, a 1% impact. Second, we had slightly more temporary closures during the Chinese New Year holiday this year compared with the prior year. We carefully evaluated holiday traffic patterns in various trade zones and dynamically adjusted our store operations. This enabled us to serve our consumers' needs better and more efficiently.

首先，由於 2024 年是閏年，因此 2025 年的工作日減少了 1 天，影響為 1%。第二，今年春節期間臨時停工的情況比去年略有增加。我們仔細評估了各個貿易區的假日客流量模式，並動態調整了商店營運。這使我們能夠更好、更有效地滿足消費者的需求。

In quarter one, net new units contributed 4% to sales growth. We're opening more smaller stores and expanding into lower tier cities. Also, we strategically closed more stores to enhance the strength of our store portfolio for better overall performance. This led to lower sales growth in quarter one, which will normalize as the year progresses.

第一季度，淨新增單位對銷售成長貢獻了4%。我們正在開設更多小型商店並向低線城市擴張。此外，我們也策略性地關閉了更多門市，以增強門市組合的實力，從而獲得更好的整體業績。這導致第一季的銷售額成長放緩，但隨著今年的進展，這種情況將會恢復正常。

Our restaurant margin was 18.6%, 100 basis points higher year over year. Savings in cost of sales and occupancy and other costs offset increases in cost of labor. Cost of sales was 31.2%, 90 basis points lower year over year. Cost of sales improved through favorable commodity prices and continued benefits from Project Red Eye. We continue to pass these savings from these initiatives to our consumers, offering excellent value for money. The timing shift of Pizza Hut's all-you-can-eat campaign also positively impacted quarter one cost of sales.

我們的餐廳利潤率為 18.6%，比去年同期高出 100 個基點。銷售成本、佔用成本和其他成本的節省抵消了勞動成本的增加。銷售成本為31.2%，較去年同期下降90個基點。透過優惠的商品價格和「紅眼計畫」的持續效益，銷售成本有所改善。我們將繼續將這些措施節省的資金轉嫁給我們的消費者，提供物超所值的服務。必勝客無限量供應活動的時間轉變也對第一季的銷售成本產生了正面影響。

Cost of labor was 25.7%, 30 basis points higher year-over-year due to higher rider costs as percentage of sales. While cost per delivery order lowered, increased delivery volume led to higher overall rider costs.

勞動成本為 25.7%，較上年同期高出 30 個基點，原因是附加成本佔銷售額的比例較高。雖然每筆配送訂單的成本降低了，但配送量的增加導致騎士整體成本上升。

Now, rider cost as percent of sales, remained stable year over year. Simplified operations, helped offset low single digit wage inflation for our frontline staff. Occupancy and other was 24.5%, 40 basis points lower year over year, as a result of cost optimizations in a number of areas, notably utilities and simplified operations.

現在，附加費用佔銷售額的百分比比去年同期保持穩定。簡化運營，有助於抵消第一線員工低個位數的薪資通膨。入住率及其他為 24.5%，年減 40 個基點，這是由於多個領域的成本優化，特別是公用事業和簡化營運。

G&A expenses 4.6% of revenue and 10 basis points lower compared to 4.7% in the prior year. Closure and impairment expenses increased year over year due to our strategic store optimization.

一般及行政費用佔收入的 4.6%，較前一年的 4.7% 下降 10 個基點。由於我們的策略性門市優化，關閉和減損費用同比增長。

Our OP margin was 13.4%, 80 basis points higher year over year, mainly driven by improved restaurant margin. Operating profit was $399 million, growing 8% year over year. Core OP also grew 8% year over year. Effective tax rate was 27.8%, 90 basis points higher year over year. Net income was $292 million, growing 3% year over year.

我們的營業利益率為 13.4%，比去年同期高出 80 個基點，主要得益於餐廳利潤率的提高。營業利潤為3.99億美元，年增8%。核心營業利潤也較去年同期成長8%。有效稅率為27.8%，較去年同期上升90個基點。淨收入為2.92億美元，年增3%。

As a reminder, we recognized $12 million less interest income this year due to a lower cash balance as a result of the cash used for shareholder returns.

提醒一下，由於用於股東回報的現金導致現金餘額減少，我們今年確認的利息收入減少了 1,200 萬美元。

Our mark-to-market equity investment also had a positive impact of $2 million in quarter one compared to a positive impact of $6 million in quarter one last year.

我們的以市價計價的股權投資在第一季也產生了 200 萬美元的正面影響，而去年第一季的正面影響為 600 萬美元。

Diluted EPS was $0.77, growing 10% year over year, or 12%, excluding the mark-to-market equity investment impact.

稀釋每股收益為 0.77 美元，年增 10%，扣除以市價計價的股權投資影響後，成長 12%。

Let's now move on to capital returns to shareholders. We're on track to return $3 billion to shareholders in 2025 through 2026. This is on top of the $1.5 billion in cash we returned in 2024. The average annual amount of capital return over the three years is around 8% to 9% of our current market cap.

現在讓我們來討論股東資本回報。我們預計在 2025 年至 2026 年期間向股東返還 30 億美元。這是我們在 2024 年返還的 15 億美元現金的基礎上的額外回饋。三年來平均每年的資本報酬率約為我們目前市值的8%至9%。

In quarter one, we returned $262 million with $172 million in share repurchases and $90 million in quarterly cash dividends. Our cash position remains healthy. We ended the quarter with $2.8 billion in the cash.

第一季度，我們透過股票回購返還了 1.72 億美元，並透過季度現金股息返還了 9,000 萬美元，共回報 2.62 億美元。我們的現金狀況依然健康。本季結束時，我們的現金為 28 億美元。

Finally, moving on to our 2025 outlook. We're operating in a complex and evolving landscape. Consumer spending remains rational. Our strategy is to offer innovative food and great value to drive traffic to our stores.

最後，我們來談談 2025 年的展望。我們正處在一個複雜且不斷變化的環境中。消費者支出保持理性。我們的策略是提供創新的食品和巨大的價值來吸引顧客到我們的商店。

We're working hard to achieve 10 consecutive quarters of positive same-store transaction growth in Q2. That said, we remain cautious of our potential fluctuations in same store sales index.

我們正努力實現第二季同店交易額連續10季正成長。儘管如此，我們仍對同店銷售指數的潛在波動保持謹慎。

Even with many moving parts, we reiterate our 2025 full year guidance of mid-single digits system sales growth. We expect to ramp up next store openings as the year progresses. For the full year, we're on track to open 1,600 to 1,800 net new stores.

即使存在許多變動因素，我們仍重申 2025 年全年系統銷售將實現中等個位數成長的預期。我們預計隨著時間的推移，新開店的數量將會增加。就全年而言，我們計劃淨增 1,600 至 1,800 家新店。

In quarter one, we opened 247 net new stores with franchise stores accounting for 41% of KFC net new openings and 33% for Pizza Hut. Franchise net new store mix for the 2025 full year is expected to be lower. Mid- to long-term, our outlook is unchanged. We expect the franchise net new store mix to reach 40% to 50% for KFC and 20% to 30% for Pizza Hut over the next few years.

第一季度，我們淨開設了 247 家新店，其中特許經營店佔肯德基淨新店數量的 41%，佔必勝客淨新店數量的 33%。預計 2025 年全年特許經營淨新店組合將會較低。從中長期來看，我們的展望沒有改變。我們預計未來幾年肯德基的特許經營淨新店比例將達到 40% 至 50%，必勝客的特許經營淨新店比例將達到 20% 至 30%。

We also target to maintain or slightly improve core OP margins for the full year.

我們也計劃維持或略微提高全年核心營業利潤率。

On the cost of sales front, we anticipate modest year-over-year improvements compared to 2024 remaining between 31% and 32%. We expect no material impact from tariffs as over 90% of our procurement is sourced locally. The direct impact from U.S. imports on our cost is expected to be minimal. Additionally, we have evaluated the indirect impact of tariffs on our upstream suppliers. Alternative raw materials solutions are available along our supply chain. So we are protected at the moment but we will monitor the situation closely.

在銷售成本方面，我們預計與 2024 年相比，年比將有小幅改善，維持在 31% 至 32% 之間。由於我們 90% 以上的採購都是本地採購，因此我們預期關稅不會產生實質影響。預計美國進口對我們成本的直接影響很小。此外，我們也評估了關稅對上游供應商的間接影響。我們的供應鏈中提供替代原料解決方案。因此我們目前受到保護，但我們會密切監視情況。

Moving on to cost of labor, we continue to face pressure on total rider costs driven by rapid delivery growth. Our goal for non-rider costs is to keep them stable by offsetting the wage inflation of frontline staff through more automation, simplification, and centralization.

談到勞動成本，我們繼續面臨著由快速交付成長帶來的騎士總成本壓力。我們對非騎士成本的目標是透過更多的自動化、簡化和集中化來抵消第一線員工的薪資上漲，從而保持非騎士成本的穩定。

In terms of occupancy and other, as a percent of sales, these are likely to stay relatively stable year over year. We continue to explore optimization opportunities to offset cost increases. By brand, we expect restaurant margins at KFC to be healthy and stable year over year and Pizza Hut margins to improve in the mid- to long-run.

就入住率和其他方面而言，作為銷售額的百分比，這些可能會逐年保持相對穩定。我們將繼續探索優化機會來抵消成本增加。按品牌劃分，我們預期肯德基的餐廳利潤率將逐年保持健康穩定，必勝客的利潤率將在中長期內有所提高。

Lastly, we expect G&A expenses as a percentage of revenue to slightly decrease and the effective tax rate to be in the high 20s. In terms of quarterly phasing, we expect tougher year-over-year margin comparisons later in the year.

最後，我們預計一般及行政費用佔收入的百分比將略有下降，有效稅率將達到 20% 左右。就季度分階段而言，我們預計今年稍後的同比利潤率比較將更加嚴格。

More meaningful benefits started to trickle in from Project Fresh Eye in Q2 of 2024 and from Project Red Eye in the second half of 2024. Overall, we're working hard towards our full-year targets.

2024 年第二季的「新鮮眼」計畫和 2024 年下半年的「紅眼」計畫開始帶來更有意義的好處。總體而言，我們正在努力實現全年目標。

Let me pass it back to Joey for her closing remarks.

讓我把它交還給喬伊，請她作最後發言。

Thank you, Adrian. Now let me spend some time on our strategy. Like everyone else, we are navigating choppy waters, but we have an excellent team capable of turning challenges into opportunities.

謝謝你，艾德里安。現在讓我花點時間談談我們的策略。就像所有人一樣，我們也在波濤洶湧的大海中航行，但我們擁有一支優秀的團隊，能夠將挑戰轉化為機會。

We will stay alert and concentrate on what we can manage. Our customers continue to love our brands, our delicious, innovative food and our very affordable prices. Our widened price ranges, field healthy transaction growth. We also offer abundant emotional value to customers.

我們將保持警惕並集中精力做好我們能做的事情。我們的客戶持續喜愛我們的品牌、美味、創新的食品以及非常實惠的價格。我們擴大了價格範圍，實現了健康的交易成長。我們也為客戶提供豐富的情感價值。

The 85th anniversary of KFC's Original Recipe Chicken (foreign language) brought back childhood memories for our customers.

肯德基原味炸雞（外語）85週年紀念活動讓顧客回憶起童年時光。

Pizza Hut celebrate Chinese New Year by wishing them good fortune with the Fortune Cat crust pizza (foreign language). We also collaborate with top IPs to offer member-exclusive deals through our own online and offline channels.

必勝客推出招財貓披薩慶祝中國新年，祝大家好運（外語）。我們也與頂級IP合作，透過我們自己的線上和線下管道提供會員專屬優惠。

A notable example was our campaign with a public Chinese mobile game Identity V (foreign language). We included tangible and virtual accessories with our meals, successfully engaging many young customers.

一個值得注意的例子是我們與中國手遊《第五人格》的合作（外語）。我們在餐點中加入了實體和虛擬的配件，成功吸引了許多年輕顧客。

Besides our amazing food and value, we offer exceptional convenience. With over 16,000 stores in 2,300 cities across China, we are rapidly expanding our store portfolio and deepening our reach. Our innovative and flexible store models help us to profitably expand our addressable market and capture additional funding opportunities.

除了我們美味的食物和價值之外，我們還提供卓越的便利性。我們在中國 2,300 個城市擁有超過 16,000 家門市，並且正在迅速擴大門市組合併深化業務覆蓋範圍。我們創新且靈活的商店模式幫助我們有利地擴大我們的潛在市場並抓住額外的融資機會。

At KFC, KCOFFEE sustained strong growth in quarter one with both cups and sales up around 20% year over year. We see huge growth potential by leveraging KFC's customers and membership base. In particular, a large majority of our vendors have yet to try KCOFFEE.

肯德基第一季咖啡銷量和杯量均較去年同期成長約20%。我們看到，利用肯德基的客戶和會員基礎具有巨大的成長潛力。特別是，我們的大多數供應商都還沒有嘗試過 KCOFFEE。

By utilizing KFC's footprint, KCOFFEE is expanding rapidly in this high-potential market. The incremental investment is light, both equipment and resources can be shared. With 1,000 KCOFFEE cafes now, we're aiming for 1,500 locations by end of 2025, which is 200 more than our original target. On the menu side, in addition to our signature Sparkling Americano (foreign language), we introduced premium Geisha beans (foreign language) for coffee lovers at just RMB12.9.

利用肯德基的影響力，KCOFFEE 正在這個潛力巨大的市場中迅速擴張。增量投資少，設備、資源可共享。目前，KCOFFEE 咖啡館已有 1,000 家，我們的目標是到 2025 年底達到 1,500 家，比我們最初的目標多 200 家。菜單方面，除了招牌的Sparkling Americano（外語）外，我們還為咖啡愛好者推出了僅售12.9元的優質藝伎咖啡豆（外語）。

We also launched a matcha (foreign language) lineup for tea drinkers, boosting afternoon sales. Having coffee in the morning and tea in afternoon is a great way to stay energized.

我們還為茶客推出了抹茶（外語）系列，以提高下午的銷售額。早上喝咖啡，下午喝茶是保持精力充沛的好方法。

At Pizza Hut, WOW is a simpler and more efficient model. Compared to the regular Pizza Hut, WOW's per person spending is lower. Its simpler menu, entry price point products, and sharp value for money appeal to young people and solo diners.

在必勝客，WOW 是一種更簡單、更有效率的模式。與普通的必勝客相比，WOW 的人均消費較低。其簡單的菜單、入門價位的產品以及極高的性價比吸引了年輕人和單獨用餐者。

As we fine-tuned the model, restaurant margin has expanded year over year. Building on the successful conversion of some Pizza Hut stores to the WOW model, we have started opening new WOW stores. A brand new WOW store's CapEx can be as low as half of a regular Pizza Hut store.

隨著我們對模型進行微調，餐廳利潤率逐年擴大。在部分必勝客門市成功轉型為WOW模式的基礎上，我們已開始開設新的WOW門市。一家全新的WOW店的資本支出可能只有普通必勝客店的一半。

With reduced CapEx, lower per-person spending and simplified operations, WOW seems suitable for lower tier cities, thereby expanding Pizza Hut's addressable market.

由於資本支出減少、人均支出降低和營運簡化，WOW 似乎適合低線城市，從而擴大必勝客的潛在市場。

Turning to our dual focus on operational efficiency and innovation, our approach is to rethink our operations from fresh perspectives. Over the past two years, we launched Project Fresh Eye and Project Red Eye. These initiatives will continue to benefit us far into the future.

談到我們對營運效率和創新的雙重關注，我們的方法是從新的角度重新思考我們的營運。在過去的兩年裡，我們啟動了「新鮮眼」計畫和「紅眼」計畫。這些舉措將在未來很長一段時間內繼續使我們受益。

We have streamlined our menu, simplified food preparation, centralized certain processes, and deployed more automation. Our innovative approach enables us to maintain consistent standards for quality and service.

我們精簡了菜單，簡化了食物準備，集中了某些流程，並部署了更多自動化。我們的創新方法使我們能夠保持一致的品質和服務標準。

Technology and innovation play a crucial role in boosting efficiency. Our end-to-end digitalization covers key operational processes, from customer service and quality control to staffing and inventory management.

技術和創新在提高效率方面發揮著至關重要的作用。我們的端到端數位化涵蓋關鍵營運流程，從客戶服務和品質控製到人員配備和庫存管理。

There are numerous examples. Just to name a few, we leverage AI to analyze customer feedback from various platforms.

有很多例子。舉幾個例子，我們利用人工智慧來分析來自各個平台的客戶回饋。

This means we can swiftly adjust our operations after a new product launch, often within just a day or two. In our digital customer service center, generative AI helps customers resolve around 90% of issues before they reach our team. We are also exploring the use of robotics to further advance our operational capabilities. Before we turn to Q&A, I would like just to recap the three key takeaways from today.

這意味著我們可以在新產品發布後迅速調整運營，通常只需一到兩天。在我們的數位客戶服務中心，生成式人工智慧可協助客戶在聯繫我們的團隊之前解決約 90% 的問題。我們也正在探索使用機器人技術來進一步提高我們的營運能力。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。

First, KFC continues to be a resilient fortress, performing well through both good times and bad. Pizza Hut has maintained its positive momentum, following last year's inflection point.

首先，肯德基繼續成為一座堅韌的堡壘，無論在順境或逆境中都表現良好。繼去年的轉捩點之後，必勝客一直保持著積極的勢頭。

Second, we are broadening our addressable markets with expanded menus, widened price ranges, and innovative models. These include our KCOFFEE cafe as well as KFC's small-town mini and Pizza Hut WOW models.

其次，我們正在透過擴大菜單、擴大價格範圍和創新模式來拓展我們的目標市場。其中包括我們的KCOFFEE咖啡廳以及肯德基的小鎮迷你和必勝客WOW模型。

Lastly, we remain committed to our dual-focus strategy of enhancing operational efficiency and fostering innovation to capture the amazing opportunities in China and create long-term value for our shareholders.

最後，我們將繼續致力於提高營運效率和促進創新的雙重點策略，以抓住中國市場的良機，為股東創造長期價值。

With that, I will pass it back to Florence.

說完，我將把它交還給佛羅倫薩。

Thanks, Joey. Now we will open the call for questions. In order to get more people a chance to ask questions, please limit your questions to one at a time. Operator, please start the Q&A.

謝謝，喬伊。現在我們開始提問。為了讓更多人有機會提問，請限制每次只問一個問題。接線員，請開始問答。

(Operator Instructions)

（操作員指示）

Lillian Lou, Morgan Stanley.

摩根士丹利的 Lillian Lou。

Hello? Can you hear me? This is Lillian. Okay. Thanks, Joey, Adrian and Florence. My question is more on the competition and the demand trends on -- after first Q, we've been seeing a bit general consumption slowdown post Chinese New Year. So I just want to understand any kind of new update of our business trend.

你好？你聽得到我嗎？這是莉蓮。好的。謝謝喬伊、阿德里安和佛羅倫斯。我的問題更多是關於競爭和需求趨勢——第一季之後，我們看到農曆新年後整體消費有所放緩。所以我只是想了解我們的業務趨勢的任何新更新。

And, in particular, since April, we all know that JD started to push on delivery with big subsidies and a lot of our competitors and the local players are joining. So, any impact to our business so far, and our strategy to this, for the aggregator competition if such competition is going to last for the longer run? Thank you.

特別是從四月開始，我們都知道京東開始透過大量補貼來推動配送業務，我們的許多競爭對手和本地企業也紛紛加入其中。那麼，如果聚合器競爭持續較長時間，這會對我們的業務以及我們的策略產生什麼影響？謝謝。

Thank you, Lillian. So far, our April performance is in line with our expectations. And we have not observed any significant negative impact. Bu, yet we continue to be watchful. we have to watch for. Let me comment what on the consumer trends and then touch upon the JD question.

謝謝你，莉蓮。到目前為止，我們四月的業績符合我們的預期。我們尚未觀察到任何重大的負面影響。但是，我們仍保持警惕。我們要注意。讓我先評論一下消費者趨勢，然後再談談京東的問題。

As I mentioned, we really have not observed any significant negative intel on our business, but of course, the situation remains fluid. And we will continue to be alert and monitor the trends with multiple scenarios marketing planning.

正如我所提到的，我們確實沒有發現任何對我們業務有重大負面影響的消息，但當然，情況仍然不穩定。我們將繼續保持警惕，並透過多種場景的行銷計劃來監測趨勢。

So with all these macro sort of a challenging environment, I just want to point out that we have successfully navigated a wide range of market conditions in the last 30-some years. Even in the last few quarters, we have faced challenging market conditions for some time, but we have consistently demonstrated our ability to thrive in both good times and bad times.

因此，在所有這些充滿挑戰的宏觀環境中，我只想指出，在過去 30 多年來，我們成功應對了各種各樣的市場狀況。即使在過去幾季中，我們也面臨著充滿挑戰的市場環境，但我們始終展現出無論在順境或逆境中都能蓬勃發展的能力。

I would like to make three points about the consumer sentiment. Point one is we are in China and dedicated to serving the Chinese people. And both KFC and Pizza Hut have a well-recognized brands beloved by Chinese consumer. We serve over 2 billion customers annually.

關於消費者情緒，我想講三點。第一，我們在中國，致力於為中國人民服務。肯德基和必勝客都是深受中國消費者喜愛的知名品牌。我們每年為超過 20 億客戶提供服務。

We have earned very strong customer support and established the connection with them. And in general, Chinese consumers have become more rational, sophisticated, and very pragmatic.

我們獲得了非常強大的客戶支援並與他們建立了聯繫。整體而言，中國消費者變得更加理性、成熟和務實。

Point 2 is we are also well recognized for supporting millions of jobs in China and giving back to the community. You know, some examples, 18 years of one-year donation and then food bank in over 1,000 store, et cetera, et cetera.

第二點是，我們也因支持中國數百萬個就業機會並回饋社會而獲得廣泛認可。您知道，舉幾個例子，18 年的一年期捐贈，然後在 1,000 多家商店設立食物銀行，等等，等等。

And three is our suppliers and franchisees and business partners are very supportive. So we have good momentum. In terms of competition with -- in terms of the question regarding the JD, I would like to make two points, Lillian.

三是我們的供應商、加盟商和業務夥伴都非常支持。因此我們擁有良好的發展動能。關於競爭——關於 JD 的問題，莉蓮，我想提出兩點。

One is we are open to work with all platforms. Our goal is always to serve customers where they are and attract new customers. With that, we do things at our own pace and we always balance short-term and long-term considerations.

一是我們願意與所有平台合作。我們的目標始終是為客戶提供服務並吸引新客戶。這樣，我們按照自己的步調做事，並且始終平衡短期和長期考慮。

Second point is even as we expand our aggregator platform, and by the way, we have continued to grow our delivery business for 11 years, and we just deliver another double-digit or 13% increase in delivery business, we continue to maintain strong control of our business. Over 70% of our sales are outside the delivery aggregators. So, the 70% business include dine-in, takeaway and our own, very own delivery channels.

第二點是，即使我們擴大了我們的聚合平台，順便說一下，我們的配送業務已經持續成長了 11 年，我們的配送業務剛剛再次實現了兩位數或 13% 的成長，我們仍然對業務保持著強有力的控制。我們的銷售額有 70% 以上來自配送聚合商以外。因此，70% 的業務包括堂食、外帶和我們自己的配送管道。

Our own App exclusive perks further drive customers. So that's where we are. And I think as of yesterday or today, there's another company stepping up delivery and competition. So will remain watchful. And then we'll balance our strategy in the short term and long term. Thank you, Lillian.

我們自己的應用程式獨有的優勢進一步吸引了客戶。這就是我們現在的狀況。我認為從昨天或今天開始，又有另一家公司正在加強交付和競爭。因此將保持警惕。然後我們會平衡短期和長期策略。謝謝你，莉蓮。

Michelle Cheng, Goldman Sachs.

高盛的 Michelle Cheng。

Hi Joey, Adrian, and Florence, thanks for taking my question. My question is regarding Pizza Hut. The first quarter Pizza Hut same-store sales and margins were really impressive. Especially, we know that actually first quarter last year, the same-store sales base was high, given the all-you-can-eat campaign.

嗨，喬伊、阿德里安和弗洛倫斯，謝謝你們回答我的問題。我的問題是關於必勝客的。第一季必勝客同店銷售額和利潤率確實令人印象深刻。特別是，我們知道，實際上去年第一季度，由於無限量供應活動的開展，同店銷售額基數很高。

So can you share with us how do you think about the same-store sales trajectory in the rest of the year? In the second quarter, we know we launched all-you-can-eat campaign again. So, on top of that, we have easier base supposedly for second quarter last year. So should we have a better expectation on the same store sales?

那麼，您能否與我們分享您對今年剩餘時間同店銷售走勢的看法？我們知道，在第二季度，我們再次推出了無限量自助餐活動。因此，最重要的是，我們為去年第二季奠定了更穩固的基礎。那麼我們是否應該對同店銷售抱持更好的期望呢？

And also on margins, we -- with the all-you-can-eat campaign, how these will impact the near-term margin while this WOW efficiency gain and the same store sales operating is positive and this will be a positive driver for the rest of the year. So just wondering that for the rest of the quarter, how should we think about the good performance in first quarter to carry on to Pizza Hut?

另外，在利潤率方面，我們——透過無限供應的活動，這些將如何影響短期利潤率，而這種WOW效率提升和同店銷售額的運營是積極的，這將成為今年剩餘時間的積極推動力。所以我只是想知道，在本季度的剩餘時間裡，我們應該如何看待第一季的良好表現以延續必勝客的勢頭？

Thank you very much.

非常感謝。

Thank you, Michelle. Yes, if it's okay with you, let me take this chance to actually address the question for both Pizza Hut and KFC and the Group as a whole. Obviously, in terms of SSSG, your question, you know, breaks down to two parts. One is top line one and one is the margins.

謝謝你，米歇爾。是的，如果您同意的話，請允許我藉此機會代表必勝客、肯德基和整個集團來解決這個問題。顯然，就 SSSG 而言，您的問題可以分為兩個部分。一個是頂線，一個是邊距。

I'll speak of top line first. In terms of SSSG, the market environment is still quite evolving and complex. Consumers stay rational. And as Joey mentioned, while we have not observe any significant negative impact of our business to date, we continue to be watchful for the development.

我首先要講的是頂線。就同​​店銷售成長而言，市場環境仍然相當變化且複雜。消費者保持理性。正如喬伊所提到的，雖然到目前為止我們還沒有觀察到對我們的業務有任何重大的負面影響，但我們仍將繼續專注於事態發展。

And April trading is generally in line with our expectation. But it's worth noting that for the month of June, we have a tougher lapping for that month. So overall for the quarter two, we're striving to achieve 10-consecutive quarters of positive same-store transaction growth.

四月份的交易總體符合我們的預期。但值得注意的是，六月我們的研磨工作更加艱鉅。因此，整體而言，在第二季度，我們力求連續 10 個季度的同店交易額正成長。

Amid the uncertain market conditions, we remain cautious about the potential fluctuations in same-store sales index. And this common is actually true for both KFC and Pizza Hut. And now comes down to margin, right? Specific to Pizza Hut, indeed the Pizza Hut all-you-can-eat campaign that took place in quarter one last year was shifted to quarter two this year.

在不確定的市場條件下，我們對同店銷售指數的潛在波動保持謹慎。而這個共同點其實對肯德基和必勝客來說都是如此。現在就到了利潤問題了，對吧？具體到必勝客，確實去年第一季的必勝客無限量供應活動今年已經轉移到了第二季。

So there is, you know, there's a quarterly shifting on the margins. But broadly speaking, in terms of the margin and outlook for the two brands, respectively, I would say there is no change to our 2025 full-year guidance on margin.

所以，你知道，利潤率每季都會改變。但總體而言，就這兩個品牌的利潤率和前景而言，我認為我們對 2025 年全年利潤率的預期不會改變。

We expect the core OP margin for the Group as a whole to stay either steady or slightly improve. That's our guidance provided three months ago.

我們預計整個集團的核心營業利潤率將保持穩定或略有提高。這是我們三個月前提供的指導。

And by brand specifically, we expect the restaurant margin for KFC to be healthy and stable year over year in this year and also over the mid to long run. And for Pizza Hut margin to slightly improve this year and for mid to long run, hopefully, the restaurant margin for Pizza Hut will improve in a bigger magnitude compared to this year.

具體到品牌方面，我們預計肯德基今年以及中長期的餐廳利潤率將保持健康和穩定。而對於必勝客的利潤率來說，今年以及中長期來看會略有提升，希望必勝客的餐廳利潤率能比今年有更大的提升。

On the top line, you know, the top line is obviously a very important factor, you know, deciding on the restaurant margin. We reaffirm our guidance for the top-line growth, which is a mid-single digit growth in the system sales.

就營業額而言，營業額顯然是一個非常重要的因素，它決定了餐廳的利潤率。我們重申對營收成長的預期，即係統銷售額將實現中等個位數成長。

And then I also like to take this opportunity to provide some more color on the line-by-line, margin outlook. For COS, as I mentioned, there is a quarterly shifting for Pizza Hut's all-you-can-eat campaign. But more broadly speaking for COS as a whole, we expect modest improvement year over year this year over last year, mainly driven by the benefits of Project Red Eye and deflation. And we continue to look to return much of the benefits to our consumers, we continue offering great value for money to our consumers.

然後，我也想藉此機會逐行提供一些關於邊距展望的更多細節。對於 COS，正如我所提到的，必勝客的無限量供應活動每季都會改變。但從更廣泛的角度來看，就 COS 整體而言，我們預計今年的同比情況將比去年略有改善，這主要得益於紅眼計畫和通貨緊縮帶來的好處。我們將繼續尋求為消費者帶來更多利益，並繼續為消費者提供物超所值的服務。

And breaking down into these two brands. You know, specifically, we expect the COS for KFC to remain in the range of 31% to 32% for the full year. And for Pizza Hut to be in the range of 32% to 33% for the full year.

並細分為這兩個品牌。具體來說，我們預計肯德基全年的 COS 將保持在 31% 至 32% 的範圍內。必勝客全年的成長率將在 32% 至 33% 之間。

And again, both these percentages will have a modest improvement year-over-year, this year over last year.

而且，與去年相比，今年這兩個百分比都將有小幅提升。

For COL, you know, as mentioned in the previous earnings release, we face some headwinds on the COL front, particularly, you know, because of the increase in delivery mix. Although the delivery cost per order decreased this year, but you know the, driven by the increase in delivery mix the overall rider cost as percentage of sales will increase for the Group and for the two brands this year.

對於 COL，正如先前的收益報告中提到的那樣，我們在 COL 方面面臨一些阻力，特別是由於交付組合的增加。雖然今年每單配送成本有所下降，但要知道，受配送組合增加的推動，今年集團和兩個品牌的整體騎士成本佔銷售額的百分比將會增加。

And we'll make all efforts to try to offset the wage inflation, which is, you know, kind of the non-delivery part, by the efficiency gain by the simplification, automation, and centralization. So tried to keep the non-delivery part of cost of labor to be stable year over year. And then comes to occupancy and other costs as percent of sales, that line item is likely to stay stable and we continue to explore optimization opportunities to offset the cost increases within that line item. And I think it is very important to note, and as you also alluded to in the question, there is a quarterly phasing for the margin. We expect tougher year-over-year comparison on both restaurant margin and operating profit margins later in the year.

我們將盡一切努力，透過簡化、自動化和集中化帶來的效率提升來抵消薪資上漲，也就是未交付的部分。因此，我們努力保持非交付部分的勞動成本逐年保持穩定。然後談到入住率和其他成本佔銷售額的百分比，該項目可能會保持穩定，我們將繼續探索優化機會以抵消該項目內的成本增加。我認為需要注意的是，正如您在問題中提到的那樣，利潤率是按季度分階段變化的。我們預計今年稍後餐廳利潤率和營業利潤率的同比對比將更加困難。

And this is because more meaningful benefits started to trickle in for Project Fresh Eye from quarter two of last year and from Project Red Eye from second half of last year. And obviously, the tailwinds from the favorable commodity prices will be narrowing in the second half of this year as well.

這是因為「新眼計畫」從去年第二季開始，以及「紅眼計畫」從去年下半年開始，開始帶來更多有意義的收益。顯然，今年下半年大宗商品價格上漲帶來的利多因素也將逐漸減弱。

And lastly, a couple of items of interest income will obviously be lower as a result of lower cash balance, given we significantly stepped up our shareholder return. And also there may be some headwinds on foreign exchange rate. And, you know, I guess one last item is the mark-to-market equity investment impact on Meituan, that's a volatile quarter-over-quarter and year-over-year.

最後，鑑於我們大幅提高了股東回報，由於現金餘額減少，幾項利息收入顯然會減少。此外，外匯匯率方面也可能存在一些阻力。而且，您知道，我想最後一件事是按市價計價的股權投資對美團的影響，這是一個季度環比和年度同比波動的情況。

So overall, we maintain our we maintain and reaffirm our annual guidance on margin and our top line. And then, you know, in terms of that line-by-line color, that's as I described. Thank you, Michelle.

因此總體而言，我們維持並重申我們對利潤率和營收的年度指引。然後，您知道，就逐行顏色而言，正如我所描述的那樣。謝謝你，米歇爾。

Thank later for the very detailed line-by-line explanation.

稍後感謝您非常詳細的逐行解釋。

Brian Bittner from Oppenheimer & Co.

Oppenheimer & Co. 的 Brian Bittner

Hi. Just for your investors outside of China, can you just maybe talk more about the consumer environment in China and how it's evolving so far in 2025? Are you seeing any positive indicators of maybe a potential inflection moving forward in the consumer?

你好。對於中國以外的投資者，您能否多談談中國的消費環境以及到 2025 年為止中國的消費環境將如何發展？您是否看到任何積極的指標表明消費者未來可能會出現潛在的轉變？

And separately, just, I wanted to address the transaction growth, particularly at KFC. It's been very solid transaction growth up 4% in the first quarter. Can you help us understand how this compares to the industry?

另外，我想談談交易成長問題，特別是肯德基的交易成長問題。第一季交易量成長非常穩健，達到 4%。您能幫助我們了解這與業界相比如何嗎？

What is the industry transactions looking like, so we can understand how much market share KFC is taking recently? Thank you.

產業交易情況如何，以便我們了解肯德基最近佔據了多少市場份額？謝謝。

Thank you, Brian. Let me start with the consumer sentiment. We have not seen sort of very different consumer sentiment change, so far.

謝謝你，布萊恩。我先從消費者情緒開始。到目前為止，我們還沒有看到消費者情緒有太大變化。

But if I could make some general comment of our consumer preference and that sort of reflecting in our numbers is that preference toward sort of the wider price range and products with even better entry price and still very innovative food. So that is still working for us.

但如果我可以對我們的消費者偏好做出一些總體評論，並且這在我們的數據中有所體現，那就是他們傾向於更廣泛的價格範圍和具有更優惠入門價格的產品以及仍然非常創新的食品。所以這對我們來說仍然有效。

And therefore, you know, you can see our transactions and are growing very nicely both in terms of our food business and drink business. So, the food business is the breakfast and then the delivery business as well. We have capture very nice incremental sales from lower delivery order, particularly in lower-tier cities.

因此，您可以看到我們的交易，無論是食品業務還是飲料業務，都在很好地成長。因此，食品業務包括早餐，然後也是送貨業務。我們從較低的配送訂單中獲得了非常好的增量銷售，特別是在低線城市。

So that helps a lot because the delivery transaction for KFC, the TC growth, actually is 24%, while the delivery sales is 13%. A similar trend in Pizza Hut, while the Pizza Hut also achieved 13% growth in delivery, the transaction growth for the lower TA, about 30 to 60 TA is actually over 50% growth. So that gives you a sense of where we are going.

這很有幫助，因為肯德基的外送交易量（TC 成長）實際上是 24%，而外送銷售額為 13%。必勝客也出現了類似的趨勢，雖然必勝客的外賣也實現了13%的增長，但對於較低的TA來說，交易額的增長幅度大約在30到60個TA之間，實際上就是50%以上的增長。這樣您就可以了解我們要去哪裡。

And also in terms of drinks, I just want to quote you one number. Our KCOFFEE, so the coffee that we sell in all our KFC stores, the increase of cups and sales is actually 20%. So that is sort of overall direction.

關於飲料，我只想給你一個數字。我們的 KCOFFEE，也就是我們在所有肯德基門市銷售的咖啡，杯量和銷量的成長實際上達到了 20%。這就是總體方向。

And I think, you know, we see sort of similar trend in the industry, but I'm happy to report in both KFC and Pizza Hut, based on our limited information because it's a very fragmented market in a way, we see some meaningful increase of our market share, particularly in the delivery business.

而且我認為，你知道，我們在行業中看到了類似的趨勢，但我很高興地報告，基於我們有限的信息，因為這是一個非常分散的市場，無論是肯德基還是必勝客，我們都看到我們的市場份額都有了顯著的增長，特別是在外賣業務方面。

So I hope that gives you a sense about where things are. And going forward, we still stick to our focus. Still focus one is innovation. That means innovation in food, in everything we do.

我希望這能讓你了解事情的現況。展望未來，我們仍將堅持我們的重點。仍重點一是創新。這意味著我們在食品方面、在我們所做的每一件事上都要創新。

And then operational efficiency. And you know, and that's where we get our margin from and supporting our innovations. One last interesting introduction of innovation, look at our KCOFFEE business, not only coffee, we're actually moving to tea as well. So, I hope that gives you a flavor of where things are, Brian. Thank you.

然後是營運效率。你知道，這就是我們獲得利潤和支持我們創新的地方。最後一個有趣的創新介紹，看看我們的 KCOFFEE 業務，不僅是咖啡，我們實際上也正在轉向茶。所以，我希望這能讓你了解事情的現狀，布萊恩。謝謝。

Chen Luo, Bank of America.

陳羅，美國銀行。

First, congrats on the same-store sales growth turning flattish in Q1. And just now also here you mentioned (foreign language) (Identity V) and it happens that my daughter is a big fan of (foreign language) (Identity V), so that actually means for me.

首先，恭喜第一季同店銷售額成長趨於平緩。剛才您也提到了（外語）（第五人格），碰巧我的女兒是（外語）（第五人格）的忠實粉絲，所以這對我來說實際上意味著。

Yes, so my question is regarding the new store expansion. And in our earnings announcement, I noticed that new store contribute around 4% revenue growth, despite around 11% something new store year-over-year growth.

是的，我的問題是關於新店的擴張。在我們的收益公告中，我注意到新店貢獻了約 4% 的收入成長，儘管新店同比增長了約 11%。

And last quarter, in Q4 last year, the new unit growth also contributed only to roughly around 5% revenue growth. So if you do the math, if we compare the revenue growth from new stores divided by the new store expansion pace, so this gives you roughly around 40% something ratio.

而上個季度，也就是去年第四季度，新單位成長也僅貢獻了約 5% 的營收成長。所以如果你算一下，如果我們將新店的營收成長除以新店擴張速度，那麼這個比例大約是 40% 左右。

I understand that we tend to open smaller and smaller stores, and I guess this could represent the long-term trend in the future. Is it fair to say that in the foreseeable future, because of our mix shift towards the smaller stores, for around 10% to 11% new store expansion, we can only expect around 4%, or at best 5% something, revenue growth from new stores because of the dilutions of the smaller new stores opened? That's my question.

我知道我們傾向於開設越來越小的商店，我想這可能代表未來的長期趨勢。是否可以這樣說：在可預見的未來，由於我們的業務組合向小型商店轉移，新店擴張率約為 10% 至 11%，我們只能預期新店的收入增長約為 4%，或最多 5% 左右，因為開設的小型新店的稀釋？這就是我的問題。

Thank you, Luo Chen. Let me address the question quite directly. I think for this year, as we mentioned in the prepared remarks, you know, in terms of the growth rate in our top line, we do expect the system sales to be in the mid-single digit range. So that's a reaffirmation of our guidance.

謝謝你，羅晨。讓我直接回答這個問題。我認為，就今年而言，正如我們在準備好的評論中提到的那樣，就我們的營業收入成長率而言，我們確實預計系統銷售額將處於中等個位數範圍內。這是對我們指引的重申。

And we target to open, you know,1,600 to 1,800 net new stores. And obviously, there's some timing, quarterly timing shifts for the net-new opens this quarter versus the rest of the quarter of the year. And then specific to your question on the 4% of net-new units contribution to the top line.

我們的目標是新開 1,600 至 1,800 家新店。顯然，本季與今年其他季度相比，新開飯店數量存在一些時間差異，季度時間表也有所不同。然後具體回答你關於淨新單位對營業收入 4% 貢獻的問題。

You know, you mentioned the 10% of net new-store increase as percentage, but obviously that's end of the quarter store count. And you know, even with all at the end of store end of quarter store count growth rate, the store week when we opened or close the store within the quarter is actually a very important factor as well.

您知道，您提到新店淨增幅為 10%，但顯然這是季度末的門市數量。而且你知道，即使所有門市在季度末的門市數量增長率都一樣，我們在季度內開設或關閉門市的周數實際上也是一個非常重要的因素。

So, you know, the end of the quarter store count only tells one side of the story. And, you know, obviously on the 4% new unit contribution, you know, we are opening smaller stores as we expand into lower-tier cities.

所以，您知道，季度末的門市數量只反映了故事的一個面向。而且，您知道，顯然，在 4% 的新單位貢獻方面，我們在向低線城市擴張時開設了規模較小的商店。

Around 70% to 80% of our new stores in this quarter are smaller stores, that's opening this quarter, are smaller stores. And as we guided to the market previously, in the previous earning release, new-store sales are around 50% to 60% of our mature stores in terms of the weekly sales.

本季我們新開的店中約有 70% 到 80% 都是小型商店。正如我們之前在財報中向市場所引導的那樣，按每週銷售額計算，新店銷售額約為成熟店銷售額的 50% 至 60%。

And there's a ramp-up period for the new store sales too. We mentioned previously that's normally three years of ramp-up period when the new store gets to a mature store.

新店銷售也有成長期。我們之前提到過，新店發展成為成熟店通常需要三年的成長期。

And importantly, our new store remain very healthy and maintain very healthy payback periods and profitability. Specific to this quarter, right, in addition to the smaller store factor, this quarter, we strategically closed more stores to enhance the strength of our overall store portfolio, as we mentioned in the prepared remarks.

重要的是，我們的新店保持著非常健康的營運狀態，並保持著非常健康的投資回收期和獲利能力。具體到本季度，除了規模較小的門市因素外，正如我們在準備好的評論中提到的那樣，本季度我們策略性地關閉了更多門市，以增強我們整體門市組合的實力。

And the net new store, net new store open figure will normalize as the year progresses. So that's more for this year, right?

隨著時間的推移，淨新店數量、淨新開店數量將趨於正常化。那麼今年就更多了，對嗎？

But speaking of mid to long run, you know, if we opened, let's say 10%, 11%, 12% of net new stores in the quarter-end figure, what's the system sales growth rate? Will that be mid-single digit or low-single digit or high single digit.

但說到中長期，你知道，如果我們在季度末開設了 10%、11%、12% 的新店，那麼系統銷售成長率是多少？那將是中等個位數、低個位數還是高個位數。

I guess, you know, the store week and the smaller store is one side, one aspect of the algorithm. The other aspect, important aspect, is the same-store sales growth. And as we mentioned, you know, just now, we remain cautious on the near term, especially this year same-store sales index. You know, there may be some fluctuations there. In the mid to long run, obviously, we don't have the crystal ball. We will control things within our control and continue to deliver excellent value for money for consumers. And then, if we can have some benefits in the mid to long run same-store sales growth, that will benefit the top-line system sales as well. Luo Chen, hopefully, that address your question.

我想，你知道，商店周和較小的商店是演算法的一個方面。另一個重要面向是同店銷售額的成長。正如我們剛才提到的，我們對短期內的情況仍持謹慎態度，尤其是今年的同店銷售指數。你知道，那裡可能會有一些波動。從中長期來看，顯然我們沒有水晶球。我們將控制我們能控制的事情並繼續為消費者提供物超所值的服務。然後，如果我們能夠在中長期同店銷售成長中獲得一些好處，這也將有利於頂線系統銷售。羅晨，希望這能回答你的問題。

Thank you. So that's very helpful. I also look forward for your more cooperation with more IPs because my daughter is really a big fan f all different kinds of IP. Thank you.

謝謝。這非常有幫助。我也期待您與更多 IP 進行更多合作，因為我的女兒真的是各種 IP 的忠實粉絲。謝謝。

The IPs are super to offer emotional values for young people, which is as important as the value sort of in the physical world. You know, the virtual world, physical world, we have to take care of both these days.

IP對年輕人來說，傳遞情感價值至關重要，這與現實世界的價值同樣重要。你知道，虛擬世界和現實世界，我們現在必須同時照顧。

Christine Peng, UBS.

瑞銀集團的 Christine Peng。

Hello, and thank you for the opportunity to have the question. So my question is about the KCOFFEE. So Joey, you mentioned that this year, you plan to open 200 more KCOFFEE stores than your initial target. So can you share us more long-term view towards this KCOFFEE? And I was also wondering, what's the impact on the KFC store economics by opening our KCOFFEE side-by-side?

您好，感謝您給我這個機會提問。我的問題是關於 KCOFFEE 的。那麼 Joey，您提到今年您計劃開設比最初目標多 200 家 KCOFFEE 店。那麼您可以和我們分享一下對 KCOFFEE 的更多長遠看法嗎？另外我還在想，把我們的KCOFFEE開在旁邊，對肯德基門市的經濟有什麼影響？

Thank you, Christine. In the long term, we are committed to the KCOFFEE business and particularly the K Cafe business because we see very promising growth momentum of this particular business. Right now, our target is 1,500 cafe by end of 2025, 200 more.

謝謝你，克里斯汀。從長遠來看，我們致力於 KCOFFEE 業務，特別是 K Cafe 業務，因為我們看到這項特定業務非常有希望的成長勢頭。目前，我們的目標是到 2025 年底擁有 1,500 家咖啡館，再增加 200 家。

And we only started last year and the most promising bit is huge, huge percentage of our members have yet tried the KCOFFEE, and that is fantastic base. And in terms of the top line and bottom line, the top line is very nice addition. Additional same-store sales growth for the stores with the KCOFFEE Cafe, and it's still sort of low single-digit, but it's very nice to that particular store.

我們去年才剛開始，最有希望的是，我們很大一部分會員已經嘗試過 KCOFFEE，這是一個極好的基礎。就頂線和底線而言，頂線是非常好的補充。KCOFFEE 咖啡館旗下門市的同店銷售額額外成長，雖然仍處於較低的個位數成長水平，但對於該門市而言，這已經很不錯了。

And then in terms of bottom line, because we share the equipment, we share the location, we share the cost of labor. So the bottom line is very protected as well. So these two are both very important to our businesses as well.

從底線來看，因為我們共享設備、共享地點、共享勞動成本。因此底線也得到了很好的保護。所以這兩者對我們的業務也非常重要。

And if I could comment on the third bit, which is the business bit, the menu, the ambience and the menu include the food and drink. We are making very good progress. And although we only start to open the KCOFFEE Cafe last year. But in 2024 alone, we launched 52 coffee drink or food items and we already have some very nice signature product, like the sparkling coffee, like a gigantic egg tart and some really quirky, quirky is the right word to describe this product, our Original Recipe Chicken latte. It's a bit challenging in terms of name, but I can assure you that the taste is really quite good.

如果我可以評論第三部分，即商業部分，菜單、氣氛和菜單包括食物和飲料。我們正在取得非常好的進展。雖然我們去年才開始開設KCOFFEE咖啡館。但僅在 2024 年，我們就推出了 52 種咖啡飲料或食品，並且我們已經有了一些非常不錯的招牌產品，例如氣泡咖啡、巨型蛋撻和一些非常奇特的產品，奇特是描述這款產品的正確詞，即我們的原味雞肉拿鐵。從名字上來說有點挑戰性，但我可以向你保證，味道確實相當不錯。

And then this year, we are moving on to introduce more premium Geisha beans for just RMB12.9. And so the product itself are getting into the mindset of the customer.

今年，我們將繼續推出更多優質藝伎咖啡豆，僅售 12.9 元。因此產品本身正進入顧客的思考模式。

And as I mentioned earlier, we even start the launch the matcha drink and as of right now, we sell Longjing, the tea leaf Longjing, with latte as well. So we are committed and we are very high positive about this KCOFFEE Cafe, not only it drives the uplift in top line but also drives incremental profit. Thank you, Christine.

正如我之前提到的，我們甚至開始推出抹茶飲料，截至目前，我們還銷售龍井茶和拿鐵。因此，我們全心投入，對這家 KCOFFEE 咖啡館充滿信心，它不僅能推動營業額的成長，還能帶來利潤的成長。謝謝你，克里斯汀。

Sijie Lin, CICC.

林思傑，中金公司。

Hi, thank you, Joey and Adrian. I have one question. So we are doing good on new products, new store model, higher operational efficiency, and we're also doing good on brand marketing.

嗨，謝謝你們，喬伊和阿德里安。我有一個問題。所以我們在新產品、新店模式、更高的營運效率方面做得很好，我們在品牌行銷方面也做得很好。

But regarding the brand marketing, maybe there are some new trends in the market. For example, some are focusing on healthiness, some are focusing on the emotional value, we just talked about that. For example, choosing like brand ambassadors, joint brands, IP toys that are popular among consumers. And maybe some are connecting the brand promotion with product and innovation.

但就品牌行銷而言，也許市場上出現了一些新的趨勢。例如有的注重健康，有的注重情感價值，我們剛才也講到了。例如選擇像品牌大使、聯名品牌、受消費者歡迎的IP玩具等。也許有些人將品牌推廣與產品和創新聯繫起來。

So do we have any new observations and evolving plans regarding these aspects regarding the brand marketing? Could you talk more about this? Thank you.

那麼我們在品牌行銷這些方面有什麼新的觀察和發展計畫嗎？您能進一步談談這個問題嗎？謝謝。

Thank you, Sijie. I'll try to respond to your question in two ways. One is our strength in brand marketing certainly is shown through our ability to market fried chicken or pizza brand almost as a bit of fashionable brand. We always stay in touch with our consumers in terms of their preferred IP and something relevant to them.

謝謝你，思傑。我將嘗試用兩種方式回答你的問題。一是我們在品牌行銷上的優勢無疑體現在我們能夠將炸雞或披薩品牌行銷成時尚品牌。我們始終與消費者保持聯繫，了解他們喜歡的 IP 以及與他們相關的內容。

And we would like to believe that we grow with them. We grow up with them or we grow with them period. So we'll continue to do that. And it seems that we've been doing it reasonably successfully.

我們也願意相信，我們會與他們一起成長。我們與他們一起成長，或者說，我們與他們一起成長。因此我們會繼續這樣做。看來我們做得還算成功。

And then you also asked about other trends in terms of healthy food, et cetera, et cetera. Well, I mean, we plan to introduce this concept to our investor and all of you guys in our Investor Day. So please, so I'll just take a chance to make an advertisement for that. Is the module, it's a module called KPRO and some of you guys have already tried a product. So what is KPRO? It's a module. Again, we continue to share the KFC store space and membership and equipment, everything. Why sharing?

然後您也詢問了健康食品等方面的其他趨勢。嗯，我的意思是，我們計劃在投資者日向我們的投資者和你們所有人介紹這個概念。所以，我只是想藉此機會做個廣告。這個模組是一個名為 KPRO 的模組，你們中的一些人已經嘗試過該產品了。那麼 KPRO 是什麼呢？它是一個模組。再次，我們繼續分享肯德基店面空間、會員資格和設備，一切。為什麼要分享？

Because the incremental investment is very light. And we have some of these stores in Beijing and Shanghai, in particular. And the menu is very different. And they are sort of very focused, it means very short menu there, particularly focused on energy bowls and smoothies.

因為增量投資很輕。我們在北京和上海尤其有一些這樣的商店。而且菜單也很不同。而且他們非常專注，這意味著菜單非常簡短，尤其註重能量碗和冰沙。

So what we call this is the lighter meals. Ans these consumers, or customers, they are, they're also our KFC members, but we just serve them with slightly different food. And so far, we really like what we have seen in both Shanghai and Beijing. Actually, there are some stores in Shenzhen as well. So if you cross the border from Hong Kong, in Shenzhen you can try the product.

所以我們稱為清淡餐。對於這些消費者或顧客來說，他們也是我們的肯德基會員，但我們只是為他們提供略有不同的食物。到目前為止，我們真的很喜歡上海和北京的成果。其實深圳也有一些店家。因此，如果您從香港過境，您可以在深圳嘗試該產品。

I mean, I like it myself very much and so as our KFC members. So we do try to offer a slightly different food to our customers. And it's hard to just talk about the new concept without trying the food and without you guys seeing how it works.

我的意思是，我自己非常喜歡它，我們的肯德基成員也非常喜歡它。因此，我們確實嘗試為顧客提供略有不同的食物。如果不嘗試食物並且不讓大家看到它的效果，那麼就很難談論新概念。

So we are looking forward to build more of these stores, particularly in Tier one, Tier two cities and then hopefully we'll have a chance to introduce a full menu, not full menu, but a wider range of menu to you guys when you come to the Investor Day later on the year. I'll pause here. Thank you.

因此，我們期待建立更多這樣的商店，特別是在一線、二線城市，然後希望我們有機會在今年稍後的投資者日向大家介紹完整的菜單，不是完整的菜單，而是更廣泛的菜單。我就在這裡暫停一下。謝謝。

Thank you, Joey. Looking forward to the Investor Day, the new product and new concepts.

謝謝你，喬伊。期待投資者日、新產品和新概念。

Yes. And if I can add on the Pizza Hut, we have amazing innovation as well. And last year, we have tried the WOW, Pizza WOW menu and will continue to streamline the menu and we continue to work on menu. Obviously, we will include that in the Investor Day as well. Thank you.

是的。如果我可以補充必勝客的話，我們也有令人驚嘆的創新。去年，我們嘗試了 WOW、Pizza WOW 菜單，並將繼續簡化菜單，我們將繼續致力於菜單的改進。顯然，我們也會將其納入投資者日。謝謝。

Thank you. Due to time constraints, this concludes our question and answer session. So I'll hand the call back to Florence closing remarks.

謝謝。由於時間限制，我們的問答環節到此結束。因此我將把電話交還給弗洛倫斯做最後發言。

Thank you. And thank you, Joey and Adrian. And this concludes our Q&A session. Before we end the call, as Joey mentioned, we're going to host our Investor Day later this year. It will be in November in Shenzhen, a tier one city in China. We will provide more details in due course.

謝謝。謝謝你，喬伊和阿德里安。我們的問答環節到此結束。在我們結束通話之前，正如喬伊所提到的，我們將在今年稍後舉辦投資者日。該活動將於 11 月在中國一線城市深圳舉行。我們將在適當的時候提供更多詳細資訊。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。