How can McDonald's and KFC's net profit in the second quarter blocked?

Cover Journalist Mother Qi

Net profit dropped 54%!

Reline net profit by 46%!

This is the data released by the chain catering giant Yum: KFC, Pizza Hut) and McDonald's in the second quarter of 2022.

According to the performance in the second quarter of Yum! China and McDonald's in the second quarter, during the reporting period, the total revenue of Yum! China was US $ 2.13 billion, a decrease of 13%compared with the US $ 2.45 billion last year. The net profit was US $ 83 million, a decrease of 54%compared with US $ 181 million in the same period last year; McDonald's revenue was US $ 5.718 billion, a decrease of 3%year -on -year, and it was less than market expectations. Net profit was US $ 1.188 billion, a 46%year -on -year decrease.

In response to the decline in net profit, McDonald's said that it was mainly due to the closure of Russia and Ukraine McDonald's restaurants and the negative impact of labor and commodity inflation pressure. McDonald's pointed out that this is related to the cost of $ 1.2 billion in rent, supplier costs and employee wages generated by McDonald's business. On May 16 this year, McDonald's announced that it would withdraw from the Russian market and chose to sell its Russian business the following month.

Yum is mainly due to the decline in operating profits, and some of them were offset by the company's net profit of Meituan reviews at a market value. It is worth noting that more than 90 % of the revenue of Yum! China comes from KFC and Pizza Hut. Among them, KFC accounts for 70 %, and Pizza Huts only accounts for 20 %.

For the "McKinsen" domestic market, McDonald's and KFC's decline in profits have a lot to do with the impact of the epidemic, especially in Shanghai, the catering industry in April to May is almost stagnant. 4. In May, Yumsung China exceeded 2,500 stores temporarily suspended or only provided takeaway and take -out services. In Shanghai, only 30%of stores can operate and have limited services. This situation has not gradually recovered until June 1, and raw materials, wages and electricity costs have risen. Although takeaway orders have increased, the cost of rider has increased accordingly.

The lively marketing battle McCann "Kung Fu"

Although McDonald's in the Chinese market has increased negatively due to the influence of the same store sales in the Chinese market, it is worth noting that McDonald's and KFC in the new menu of the "night economy" and high premium toys are indeed "kung fu on the marketing level. "".

In May of this year, McDonald's China's new platform "Mai Mai Night Market" was officially launched, and the new consumption model increased the "night economy". In July, McDonald's China launched a new chicken burger -Mai Mai Kazi Crispy Chicken Leg Castle. At the same time, McDonald's China also released 100,000 digital collections for the first time.

In this regard, insiders believe that under the impact of the epidemic, whether it is KFC or McDonald's, these dense circles are to draw young users to continuously find segmented people, increase business duration, accumulate product potential energy, and strive to seek more growth. Chance. However, how to develop cross -border marketing from staged tactics to medium- and long -term strategies is a test of the comprehensive operation and management capabilities of enterprises. Of course, for the food and drinking industry, it is still recognized by consumers. It is still food safety.

The new track involved but the sinking market is still the main battlefield

Although McDonald's and KFC in the Chinese market have increased negatively due to the influence of the same store sales in the Chinese market. According to financial reports, in the second quarter, McDonald's global sales sales increased by 9.7%year -on -year, and all segmented markets increased. The bid for 2021 also increased significantly in 2021.

The reporter noticed that KFC and McDonald's are involved in the current hot air pre -made dishes and coffee tea tracks to find growth points. KFC's "free kitchen" series, not only steaks, pasta, but also Chinese fried rice, dumplings, and hot and sour powder. His brothers brand Pizza Hut also launched prefabricated dishes. On the other hand, KFC also took the lead in opening the "Grandpa free tea" in Suzhou in the field of tea. McDonald's continued to make efforts on the coffee track. McDonald's coffee counters were opened separately through the McDonald's restaurant, and strong driving through joint event marketing activities also achieved certain results.

It is worth noting that according to the cover news reporters, the accelerated development of stores is still an important layout of McDonald's and KFC. McDonald's proposed by the end of 2022, the number of McDonald's Chinese restaurants will be added to 4,500 restaurants. The quarterly realized realization; Yum! China has also proposed the target of about 1,000 to 1,000 to 1,200 stores. KFC has added 342 stores this year.

People in the industry believe that for international chain brands such as KFC and McDonald's, the deployment of sinking markets has certain challenges in how to innovate products, how to get out of differentiation, and more fine digitalization.

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