Wang Yijie

Wang Yijie from Haitong Securities asked about the drivers behind the 2024 profit margin improvement and the outlook for 2025. She also inquired if efficiency-boosting measures from successful North American stores were being replicated elsewhere.

Answer

An executive stated it was too early to provide 2025 profitability guidance, especially with new store openings planned. The 2024 improvement was attributed to a concerted effort from both frontline employees and headquarters, not a single factor. Regarding operational improvements, the executive emphasized that each store is differentiated and success depends on adapting to local conditions, so what works in one region is not necessarily a template for another.

Wang Yijie from Haitong Securities asked about the drivers for the 2024 operating profit margin improvement and the 2025 outlook, and whether successful operational measures from North American stores were being replicated elsewhere.

Answer

An executive stated that it is too early to provide a 2025 profitability projection, especially with new store openings planned. The 2024 margin improvement was attributed to a concerted effort from both frontline employees and headquarters. The executive emphasized that operational measures are highly localized, and while there are many successful cases, strategies are tailored to each store's specific environment rather than being uniformly replicated.

Yijie Wang from Haitong Securities asked about the key growth drivers behind the improved restaurant profitability in 2024 and the outlook for 2025. She also inquired if the company saw opportunities to replicate successful, innovative efficiency measures from specific North American stores across other locations.

Answer

An unnamed executive stated it is difficult to provide a 2025 profitability forecast due to the strategy of rewarding customers at high-performing stores and the impact of opening many new stores and sub-brands. The 2024 operational improvement was attributed to the concerted efforts of both frontline employees and headquarters, not a single factor. Regarding replicating success, the executive emphasized that each store is differentiated and managed based on local conditions, so while there are many successful cases, strategies are highly dependent on the local environment and what works best for that specific store.