The Zhitong Finance App learned that Northeast Securities released a research report stating that it maintains Yum China's (09987) “buy” rating and expects net profit of 8.7/9.9/1.15 billion US dollars to the mother in 2024-2026. The company is a long-standing benchmark for localized Western-style fast food. Competition with emerging brands such as Tustin will gradually weaken. This round is more hampered by poor macroeconomic spending power, and the company's basic plate/moat/model texture is still extremely stable. Expect performance catalysts brought about by a recovery in consumption.

The bank believes that Tustin's management took the initiative to cut Wallace's share, and the position/competitive relationship with KFC will gradually weaken in the future. The KFC store model is superior to its direct competitor McDonald's. The advantages gradually expand as the line level declines. Judging from the texture of the single-store model, Tustin = KFC > McDonald's > Wallace, KFC can still build a deep moat based on its high-quality model with high threshold, high profit, and fast return. Since 2023Q4, KFC's store efficiency has declined sharply, Tastin/Dexx has weakened slightly, and Wallace has accelerated its upward trend, showing a significant trend of consumption downgrading. All brands have been affected, indicating that KFC's current store efficiency is under more pressure from changes in the consumer environment.