After takeaway orders contributed over half of KFC's sales, price increases began.

Following McDonald’s lead, KFC has also launched a new round of price adjustments. Starting January 26, KFC made a slight price adjustment to its delivery products, with the average adjustment amount being 0.8 yuan, while dine-in prices remain unchanged. Prices for popular value meal sets favored by consumers, such as “Crazy Thursday,” “Weekend Crazy Combo,” and “OK Meal Trio,” are also unaffected. KFC stated that this adjustment is mainly “to better respond to changes in operating costs and maintain stable and healthy operations.” In recent years, chain fast-food brands have generally regarded price adjustments as a routine measure to cope with changes in market costs. At the end of 2024, KFC implemented a price adjustment ranging from 0.5 yuan to 2 yuan, with the average increase rate being 2%. Going back to 2022, due to factors such as the global supply chain, the average increase was about 6.2%. However, compared with previous instances, the direct background for this round of adjustment may be that price competition on delivery platforms has substantially changed the brand’s sales structure and profit model. In the third quarter, KFC’s delivery sales rose 33% year-on-year, and the proportion of total restaurant revenue from delivery increased from 40% in the same period last year to 51%. For chain restaurant brands, growth in the delivery business has generally resulted in higher delivery costs, creating an order diversion from self-owned channels, and possibly causing fluctuations in profit margins. KFC has already implemented various countermeasures: for example, improving dine-in table turnover with the “Shoulder to Shoulder” model, innovating new products based on core ingredients to control costs, and relying on a vast membership system and in-house delivery team to reduce dependence on third-party platforms. Joey Wat, CEO of Yum China, stated in the third quarter financial report that by leveraging the delivery business, Yum China has managed to drive customer volume while securing profit margins, seizing current opportunities as well as maintaining long-term brand positioning. However, as delivery subsidies decline, safeguarding long-term benefits and achieving sustainable growth remains a core challenge that foodservice brands need to plan carefully. Yum China plans that when the total number of stores surpasses 25,000 in 2028, the Group’s target operating profit margin will rise to no less than 11.5%, and the KFC restaurant profit margin will be no less than the 17.3% level seen in 2025. Neither the external environment nor the internal structure is cast in stone; Yum China’s “economic calculation” still needs continuous refinement in a dynamic balance. Risk Warning and Disclaimer The market carries risks, investment should be made cautiously. This article does not constitute personal investment advice, nor does it take into account the unique investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions mentioned in this article suit their specific circumstances. You are solely responsible for investment decisions made on this basis.