KFC China, the fast-food chain operated by Yum China Holdings Inc. (9987.HK), announced on Tuesday that it would raise prices for the first time in two years by an average of 2%, equating to increases of 0.5 yuan to 2 yuan per item.
According to a media report in financial media Yicai Global, the increase is aimed at better adapting to changes in market costs and ensuring the company’s sustainable, stable and healthy development. Despite the increase for some products, KFC kept the price of its highly popular combo meals, such as its ‘’Crazy Thursday’’ promotions, unchanged.
As of the end of September this year, Yum China had 15,861 restaurants in its network, including 11,283 KFC stores and 3,606 Pizza Huts. KFC’s top competitor, McDonald’s (MCD.US), raised its prices in China by 3% a year ago. Yum China’s Hong Kong-listed stock rose 1.77% to HK$379.60 on Tuesday.
By Lee Shih Ta
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