Joey Wat: Hi, Anne. For the Chinese New Year same-store sales, the mid-single-digit number, KFC did better, slightly better than Pizza Hut, because of the transportation hub stores performed very well. As we mentioned in the earnings release this morning, it’s even better than the government statistics. So that helps a lot. And in terms of the regional difference. And all regions performed quite well across all regions, and lower tier cities performed better, actually. But I have to mention is, we need to be prudent to look at the number, because this year, Chinese New Year is very early. So the comparison is rather difficult. We shall look at the Chinese New Year number, including January and February. So that will — that picture would be more complete.
And in terms of delivery business, the increase is good between 2019 to 2022, it moved from 20% to 40% for Yum China. However, I would also like to mention that, as the management look at this business, we also look at off-premise business as a whole, because delivery business is still outperformed — still outperformed compared to dine-in. But the question is, where’s the ceiling? I mean, I would just like to highlight the off-premise sales right now for our business is about two-third, which I mentioned earlier. And that’s incredibly important in our analysis, because it’s about the resiliency of our business. That is something the management team has worked very hard to achieve. And that’s also the reason why we have done okay in the last three years, because when the off-premise business is as high as two-third, they help protect the business.
Think about with our breakeven sales. That’s how we think about it. What’s the breakeven sales for our business? It’s right now, you can work out the number, is — we only need less than 80% of the sales or same-store sales to breakeven, to achieve breakeven. That means even during the pandemic when a significant portion of our store was shut, we can still achieve breakeven sales, because that sales transfer from dine-in to delivery and off-premise even during the lockdown. So that’s the way that we look at the business, and I hope you would — you guys will also look at the business in this way as well. And that 20% increase, therefore, from 2019 to 2022 is incredibly important. If I mention one more point is, if you look at our number during quarter four 2022, KFC did better than Pizza Hut.
One reason is KFC’s is off-premise business. It’s much higher than Pizza Hut. So protect the downside much better. Thank you, Anne.
Anne Ling: Interesting. Thank you.
Operator: Thank you. Your next question comes from Lillian Lou from Morgan Stanley. Please, go ahead.
Lillian Lou: Thank you, Joey and Andy, for your explanation of the situation. Just a very quick follow-on question, because that’s exactly what Joey just mentioned, that KFC versus Pizza Hut recovery pace. Given this current still volatile situation and meanwhile, we are seeing an improvement in off-premise traffic. So like for Jan and Feb and even for 2023, are we seeing — like, is it fair that we can expect the KFC’s momentum in terms of the pickup trend will be stronger than Pizza Hut? And, especially, how this delivery portion may be normalized down a bit versus last year. How does that, kind of, impact our forecast for same-store sales growth? I believe traffic will offset some downward pressure on ticket size for KFC and obviously situation for Pizza Hut. So, basically, how do we picture these dynamics in the next couple of months and also 2023? Thank you.
