Yum China Grows Revenue with Budget-Friendly Menus and Rapid Expansion

The operator of KFC and Pizza Hut in China sees record earnings through value-focused offerings and aggressive store openings in smaller cities.

Yum China reported a record $11.3 billion in revenue for 2024, a 5% growth year-over-year, outpacing China's broader retail sales growth of 3.5%.
The company introduced budget-focused models, including KCOFFEE and Pizza Hut WOW, which offer lower-cost options tailored to cost-conscious consumers in China.
Pizza Hut's affordable menu items, such as pizzas priced under $7, contributed to a 50% growth in sales for that category in 2024, along with a 156% rise in operating profit for the latest quarter.
Yum China plans to open up to 1,800 new stores in 2025, focusing on lower-tier cities with simplified operations and smaller menus to tap into emerging consumer markets.
Localization efforts, including products like durian pizza and pistachio-stuffed crusts, have helped Yum China appeal to local tastes and maintain resilience in a challenging economic environment.