Yum China Reports Second Quarter 2023 Results

SHANGHAI, July 31, 2023

SHANGHAI, July 31, 2023 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the second quarter ended June 30, 2023.

Second Quarter Highlights

• Total revenues increased 25% year over year to $2.65 billion from $2.13 billion (a 32% increase excluding foreign currency translation ("F/X")).
• Total system sales increased 32% year over year, with increases of 32% at KFC and 30% at Pizza Hut, excluding F/X. Growth was mainly attributable to same-store sales, new unit contribution and lapping of temporary store closures in the prior year.
• Same-store sales increased 15% year over year, with increases of 15% at KFC and 13% at Pizza Hut, excluding F/X.
• Opened 422 net new stores during the quarter; total store count reached 13,602, as of June 30, 2023.
• Operating Profit increased 216% year over year to $257 million from $81 million (a 228% increase excluding F/X), primarily driven by sales leveraging and margin expansion.
• Adjusted Operating Profit increased 215% year over year to $259 million from $82 million (a 227% increase excluding F/X).
• Restaurant margin was 16.1%, compared with 12.1% in the prior year period.
• Effective tax rate was 24.7%.
• Net Income increased 138% to $197 million from $83 million in the prior year period, primarily due to the increase in Operating Profit.
• Adjusted Net Income increased 137% to $199 million from $84 million in the prior year period (a 207% increase excluding the net loss of $9 million in the second quarter of 2023 and net gain of $16 million in the second quarter of 2022, from the mark-to-market equity investment in Meituan; a 219% increase if further excluding F/X).
• Diluted EPS increased 135% to $0.47 from $0.20 in the prior year period.
• Adjusted Diluted EPS increased 135% to $0.47 from $0.20 in the prior year period (a 206% increase excluding the net loss from the mark-to-market equity investments in the second quarter of 2023 and net gain in the second quarter of 2022; a 219% increase if further excluding F/X).

Key Financial Results