China’s largest quick-service restaurant operator

Yum China possesses a nationwide supply chain and logistics network, a thousand-strong team focusing solely on store expansion, and its own delivery platform and rider fleet, all of which enables it to grow while controlling costs and maintaining product quality. The company’s scale, execution ability and innovation are significant sources of its competitive advantage. For example, the company has a smart promotion system that regularly engages millions of their KFC and Pizza Hut loyalty scheme members, who in turn generate over 50% of sales.

The company and management are strongly aligned with shareholders and have a culture that embraces innovation. The company also takes its environmental and social obligations seriously. For example, it incorporates healthier items such as salad and congee into its menu and is an active member of the Chinese Nutrition Society. The company also aims to reduce wastage and have cut paper and plastic usage by around 9,000 tons a year. They are also committed to further improving their sourcing for palm oil and paper; and provide welfare and insurance coverage not only to its front line staff but also their elderly parents, which shows the value they place on staff wellbeing. We believe these investments will enable them to continue to grow sustainably and benefit from China’s growing domestic consumption trends.