Apple Sues OpenAI, Former Employees Over Alleged Trade Secret Theft 
Disaster or digital spectacle? The dangers of using floods to create social media content 
Booked to travel through the Middle East? Here’s why you shouldn’t cancel your flight 
Levi Strauss Raises 2026 Outlook After Q2 Earnings Beat, Shares Drop Despite Strong Results 
The ghost of Robodebt – Federal Court rules billions of dollars in welfare debts must be recalculated 
AI is driving down the price of knowledge – universities have to rethink what they offer 
Bain Capital Exits Kioxia After AI-Fueled Valuation Surge 
Every generation thinks they had it the toughest, but for Gen Z, they’re probably right 
Japan Producer Inflation Hits 7.1% in June, Fueling BOJ Rate Hike Expectations 
US Stock Futures Steady as US-Iran Tensions and Fed Inflation Concerns Weigh on Markets 
Sino Biopharm Stock Rises After AstraZeneca Licensing Deal, GSK Partnership Expansion 
Dollar Slips After Fed Minutes as Iran Tensions, Inflation Risks Keep Markets Cautious 
Apple Tests China's CXMT Memory Chips as DRAM Maker Gains Global Market Share 
BHP Faces Port Hedland Strike Threat as Iron Ore Export Risks Grow 
US Launches New Iran Strikes as Strait of Hormuz Conflict Escalates, Oil Prices Rise 
Fed Reaffirms 2% Inflation Goal, Vows Forceful Action to Anchor Price Expectations 
Despite the economic deceleration, Yum China Holdings, the parent company of KFC and Pizza Hut in mainland China, remains undeterred in its expansion plans. According to CEO Joey Wat, the company aims to inaugurate up to 1300 new stores in 2023, buoyed by robust Q2 results and favorable growth prospects in the Chinese market.
In an interview with Reuters following the company's positive second-quarter results, which showed a 25% increase in revenue, Wat expressed optimism about the growth opportunities in the Chinese market. She mentioned that Yum China intends to maintain a steady pace of opening 1100 to 1300 new outlets this year, while capital spending is expected to range between US$700 million to $900 million.
Wat emphasized that despite slower GDP growth, the Chinese market is still growing much faster than some developed markets, and it presents significant growth prospects due to its size. She highlighted that Yum China has successfully expanded not only in lower-tier cities but also increased its presence in top-tier cities, yielding positive results.
China's post-Covid recovery has encountered challenges recently, with domestically and internationally weakened demand. However, the catering and tourism sectors have shown resilience as Chinese residents have sought new leisure activities.
While acknowledging the need for time to adjust to the lifting of Covid restrictions, Wat noted that small waves of infections have impacted consumption. Despite this, overall traffic has started to recover, although spending per person has decreased as consumers have become more cautious in their expenditures.
As we enter the summer trading period, Wat highlighted that traffic is gradually increasing, particularly in tier 2 cities, as people venture out on trips. She acknowledged that after three challenging years, it takes time for people to recover fully.
In its second-quarter report, Yum China Holdings announced a net income of $197 million, a substantial surge of 138% compared to last year.
Photo: Aleks Dorohovich/Unsplash
