The Yum! China Division (includes mainland China, Thailand and KFC Taiwan), based in Shanghai, has been reported separately since the beginning of 2005 due to its size, unique strength and importance. Today our Yum! China Division has more than 3,100 system restaurants (Q1 2008).
Mainland China is our number one market for new company restaurant development worldwide. In 2007, operating profits for the China Division (mainland China, Thailand and KFC Taiwan) were more than $375 million. We are focused on the tremendous growth opportunity we have with our primary global brands, KFC and Pizza Hut.
Yum!'s KFC brand was the first quick-service restaurant chain to enter China in 1987. In 2002, KFC opened the first-ever drive-thru restaurant in China. Today, KFC is the number one quick-service restaurant brand in China. Yum! China has more than 2,200 KFC restaurants in 450 cities in mainland China (Q1 2008).
Pizza Hut was the first restaurant chain to introduce pizza to China in 1990. Today, Pizza Hut is the number one casual dining brand in China. Yum! China has more than 360 Pizza Hut casual dining restaurants in more than 80 cities within mainland China. In addition, there are nearly 60 Pizza Hut Home Service delivery units in mainland China (Q1 2008).
Yum! China is also testing East Dawning, the Company's Chinese quick-service restaurant brand to provide affordable, great-tasting, authentic Chinese food to the Chinese customer. There are 14 East Dawning stores in mainland China (Q1 2008).
Yum! China provides us with a huge opportunity for growth and restaurant development. Our strategy is to be the leader in every significant food service category in China.
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