oom  KFC remains, in Wat’s words, the number one growth driver and the engine room of the portfolio. The brand produced US$332 million of operating profit in the quarter, roughly six and a half times Pizza Hut’s US$51 million, on system sales growth of 7 per cent. Same-store sales rose 1 per cent, a fifth straight quarter of growth.  The menu strategy is to build billion-yuan platforms and extend them. Whole chicken, launched in 2021 as an at-home category, generated over CNY 2 billion in sales last year, Wat said, while the spicier Zinger burger line is expected to exceed CNY 5 billion in sales by the end of 2026. KFC’s side-by-side modules are scaling faster than the network itself. KCoffee Cafe, which generated around CNY 1 billion in sales last year, passed 3300 locations in the quarter.  “We aim to double that to nearly CNY 2 billion this year,” Wat said. Pizza Hut: Turnaround, then takeover  Pizza Hut’s same-store sales returned to positive growth at 1 per cent.  Pizza Hut Burger Bar, an open-kitchen burger counter inside existing restaurants, has reached more than 200 locations in six months, contributing double-digit incremental sales to parent stores. “Great-tasting burgers, amazing value for money, and a quick service model have proved very appealing to young consumers and solo diners,” Wat said. The rollout target is 500 to 600 locations by December, with the category expected to top RMB1 billion in sales this year. “We are about to reach a major breakthrough by becoming the owner of the Pizza Hut brand in Mainland China after operating the brand in the market for 36 years,” Wat said. In June, Yum! Brands agreed to sell Pizza Hut globally for a combined US$2.7 billion, handing the business outside mainland China to private equity firm LongRange Capital for about US$1.5 billion and the mainland brand to Yum China for US$1.2 billion.  Wat said the company will enhance store economics and make Pizza Hut’s restaurant margin closer to KFC’s “In 2027 and 2028, we now expect net new openings to exceed 800 per year, up from our original target of over 600.” The machine behind the brands Across the portfolio, two forces are doing the heavy lifting. One is expansion: a record 560 net new stores opened in the quarter, bringing the total to 19,297, with franchisees accounting for 41 per cent of the openings.  “With franchise stores accounting for only 18 per cent of total stores of Yum China, we’re confident there are significant opportunities ahead,” Adrian Ding, CFO of Yum China, said. The other is delivery, now 54 per cent of company sales, up from 45 per cent a year ago – the residue of the platform subsidy war between Meituan, Alibaba and JD.com – which cost the group about 140 basis points of margin in rider fees, largely offset through rent renegotiations and leaner operations. “We face tougher comparisons in the second half of the year following last year’s delivery platform subsidies,” Wat acknowledged, while Ding offered only that July tracked in line with expectations.  Still, with US$1.5 billion in capital returns on track and full ownership of its second brand imminent, the chief executive was entitled to her closing flourish: “We are firing on all cylinders.” Further reading: Inside Yum China’s operating reset as China’s consumers stay cautious.