Yum China CEO on Growth, Sales, Trade War

The transcript discusses KFC's growth potential in China, highlighting the opportunities in urbanization and GDP growth. It addresses the challenges faced, including macroeconomic and geopolitical issues, and how the company adapts to them. The value proposition of KFC as a resilient business model is explored, emphasizing its appeal to consumers. Investor concerns regarding US-China tensions and the trade war are discussed, along with the impact on the supply chain, particularly in sourcing cheese and beef. The company has adjusted its supply chain to mitigate tariff impacts.

What is the main reason for Yum China's optimism about growth in China?

• The untapped market in many cities

• The presence in 1200 cities

• The high GDP per capita

• The lack of competition

How does Yum China position itself in the market to withstand economic challenges?

• By offering luxury dining experiences

• By focusing on high-end consumers

• By reducing operational costs

• By providing value for money

What is a key factor that makes Yum China's business model resilient?

• High average spend per customer

• Strong brand and good customer experience

• Exclusive partnerships with local suppliers

• Focus on international markets

How has Yum China adapted its supply chain in response to trade tensions?

• By sourcing more products locally

• By reducing the use of imported beef

• By increasing imports from the US

• By switching cheese suppliers to non-tariff countries

What is Yum China's approach to dealing with geopolitical challenges?

• Exploring opportunities with global suppliers

• Focusing solely on the Chinese market

• Avoiding international suppliers

• Relying on US-based governance