Yum China Holdings, Inc. (NYSE:YUMC) Q4 2022 Earnings Call Transcript

Joey Wat: Red , I have one point to add. Analytically or from analyst point of view, the CapEx, the rent, the sales, all these are important factors to open stores. But operationally, what is not mentioned enough, the most important factor actually is how many good store managers do we have. And good store managers take some time to train, two to three years. And for us, we don’t apologize for their focus because even in our culture, we emphasize on our GM number one. Our store managers are the most important people in our organization. So, in order to ensure quality of growth, as Andy mentioned, we need to put all these things under control, the CapEx, the rent, the operation, the sales. But the most important job for me and my management team is we make sure we have good store managers to run the store. Thank you.

Andy Yeung: In terms of by brand, I think like, obviously, KFC remain the largest brand for small opening and you’ve seen Pizza Hut have accelerated to opening, as Joey mentioned, a record number in probably recent years with a number of years, even before pandemic. And then you — we are continuing to see very robust expansion for Lavazza, right after now is more than 80, 85 store already growing very rapidly. And you think about it compared to last year as multiple store increase. And then Taco Bell also happen to increase the — expression. In terms of the Chinese new business, we’ll work right closely with our franchisees. We will like to see the network increase by 2023 for the Chinese business, both which include our ship and module. Thank you.

Joey Wat: Thank you.

Unidentified Analyst: Thank you.

Operator: Thank you. There are no further questions at this time. I’ll now hand back to Michelle for closing remarks.

Michelle Shen: Thanks, Sari. Thank you all for joining the call today. We look forward to speaking with you on the next earnings call. If you have further questions, please reach out through the contact information in our earnings release, and all have a great day. Thank you.

Andy Yeung: Thank you, everyone.

Joey Wat: Thank you.

Operator: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.