Goldman Sachs: Demand for food and beverage in the mainland is still weak, and the performance of various brands continues to diverge

The Zhitong Finance App learned that Goldman Sachs released a research report saying that food trends in the mainland were still fluctuating in October, echoing the view that the fourth quarter had yet to see a clear turning point in demand, while the performance of various brands continued to diverge.

By brand, Yum China (09987)'s October performance was generally in line with expectations. Golden Week improved slightly compared to the Mid-Autumn Festival, and management aimed to improve same-store sales quarterly in the fourth quarter. In terms of hand-cranked drinks, the trend in October was resilient, benefiting from an easing base and more normal and warmer weather. Lucky Coffee indicates that as of November 3, same-store sales growth improved further in the fourth quarter. The trend of Gu Ming (01364) remained stable, and initial sales of new products were healthy. CHA.US (CHA.US) still recorded positive year-on-year growth in October, slightly higher than the bank's forecast that total single-store commodity transaction volume (GMV) for the fourth quarter would remain flat year on year. However, as the base normalized in the latter half of the fourth quarter, sustainability is still a key observation point.