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Yum China's (YUMC) K-COFFEE Opens its 200th Store in China
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Yum China Holdings, Inc. (YUMC - Free Report) announced the opening of the 200th store of KFC’s coffee brand, K-COFFEE, in China. The milestone number was achieved upon recent two store openings in Hangzhou East Railway Station and Hangzhou International Airport.
The K-COFFEE’s side-by-side store model houses shared kitchen facilities with KFC stores, which help reduce investment and operating costs while providing exceptional value to its customers. Currently, K-COFFEE side-by-side stores are spread out across more than 120 cities across 31 provincial-level regions in China.
Furthermore, on the occasion of celebrating the 200th store and the 20th anniversary of KFC's flagship egg tart, K-COFFEE introduced a new coffee beverage, Egg Tart Dirty Coffee. Alongside expansion initiatives, K-COFFEE intends to offer its customers diversified offerings of coffee beverages and further develop the brand in China.
Emerging Growth Driver - K-COFFEE Brand
Since the start of 2024, Yum China has been witnessing rapid growth from its K-COFFEE brand. The side-by-side store model is playing a great role in fostering the uptrend. The model showcases distinct K-COFFEE storefronts and dining areas with a cozy and inviting cafe ambiance adjacent to the KFC restaurants. Also, aspects including product innovation, affordable pricing, and improved accessibility are generously adding to the uptick.
During the first quarter of 2024, the company sold $50 million worth of cups of coffee, representing a 30% increase year over year. Priced at RMB9.9 per cup, the coffee selections offer exceptional value, thus playing a pivotal role in driving customer traffic. Furthermore, Yum China highlighted benefits stemming from strategic menu enrichment with entry-level products. These initiatives, supported by an efficient in-house supply chain, have facilitated innovation while safeguarding profit margins.
Shares of this fast-food restaurant company have gained 5.3% in the year-to-date period against the Zacks Retail - Restaurants industry’s 28.1% decline. The company is likely to have been benefiting from new and affordable menu offerings and unit expansion efforts.
Zacks Rank & Key Picks
Yum China currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
WSM has a trailing four-quarter earnings surprise of 19.6%, on average. The Zacks Consensus Estimate for WSM’s fiscal 2024 sales and earnings per share (EPS) indicates growth of 0.1% and 8.3%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) currently sports a Zacks Rank of 1. EAT has a trailing four-quarter earnings surprise of 213.4%, on average.
The consensus estimate for EAT’s fiscal 2025 sales and EPS indicates growth of 3% and 11.8%, respectively, from the year-ago period’s levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. GPS has a trailing four-quarter earnings surprise of 202.7%, on average.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS indicates a rise of 0.2% and 21.6%, respectively, from the year-ago period’s levels.
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Yum China's (YUMC) K-COFFEE Opens its 200th Store in China
Yum China Holdings, Inc. (YUMC - Free Report) announced the opening of the 200th store of KFC’s coffee brand, K-COFFEE, in China. The milestone number was achieved upon recent two store openings in Hangzhou East Railway Station and Hangzhou International Airport.
The K-COFFEE’s side-by-side store model houses shared kitchen facilities with KFC stores, which help reduce investment and operating costs while providing exceptional value to its customers. Currently, K-COFFEE side-by-side stores are spread out across more than 120 cities across 31 provincial-level regions in China.
Furthermore, on the occasion of celebrating the 200th store and the 20th anniversary of KFC's flagship egg tart, K-COFFEE introduced a new coffee beverage, Egg Tart Dirty Coffee. Alongside expansion initiatives, K-COFFEE intends to offer its customers diversified offerings of coffee beverages and further develop the brand in China.
Emerging Growth Driver - K-COFFEE Brand
Since the start of 2024, Yum China has been witnessing rapid growth from its K-COFFEE brand. The side-by-side store model is playing a great role in fostering the uptrend. The model showcases distinct K-COFFEE storefronts and dining areas with a cozy and inviting cafe ambiance adjacent to the KFC restaurants. Also, aspects including product innovation, affordable pricing, and improved accessibility are generously adding to the uptick.
During the first quarter of 2024, the company sold $50 million worth of cups of coffee, representing a 30% increase year over year. Priced at RMB9.9 per cup, the coffee selections offer exceptional value, thus playing a pivotal role in driving customer traffic. Furthermore, Yum China highlighted benefits stemming from strategic menu enrichment with entry-level products. These initiatives, supported by an efficient in-house supply chain, have facilitated innovation while safeguarding profit margins.
Shares of this fast-food restaurant company have gained 5.3% in the year-to-date period against the Zacks Retail - Restaurants industry’s 28.1% decline. The company is likely to have been benefiting from new and affordable menu offerings and unit expansion efforts.
Zacks Rank & Key Picks
Yum China currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
Williams-Sonoma, Inc. (WSM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
WSM has a trailing four-quarter earnings surprise of 19.6%, on average. The Zacks Consensus Estimate for WSM’s fiscal 2024 sales and earnings per share (EPS) indicates growth of 0.1% and 8.3%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) currently sports a Zacks Rank of 1. EAT has a trailing four-quarter earnings surprise of 213.4%, on average.
The consensus estimate for EAT’s fiscal 2025 sales and EPS indicates growth of 3% and 11.8%, respectively, from the year-ago period’s levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. GPS has a trailing four-quarter earnings surprise of 202.7%, on average.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS indicates a rise of 0.2% and 21.6%, respectively, from the year-ago period’s levels.