Yum China Reports First Quarter 2023 Results - 02.05.23 - News

SHANGHAI, May 2, 2023

SHANGHAI, May 2, 2023 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the first quarter ended March 31, 2023.

First Quarter Highlights

Total revenues increased 9% year over year to $2.92 billion from $2.67 billion (an 18% increase excluding foreign currency translation ("F/X")).
Total system sales increased 17% year over year, with increases of 17% at both KFC and Pizza Hut, excluding F/X. Growth was mainly attributable to same-store sales growth, new unit contribution and lapping of temporary store closures in the prior year.
Same-store sales increased 8% year over year, with increases of 8% at KFC and 7% at Pizza Hut, excluding F/X.
Opened 233 net new stores during the quarter; total store count reached 13,180 as of March 31, 2023.
Operating Profit increased 118% year over year to $416 million from $191 million (a 134% increase excluding F/X), primarily driven by sales leveraging and margin expansion.
Adjusted Operating Profit increased 117% year over year to $419 million from $193 million (a 133% increase excluding F/X).
Restaurant margin was 20.3%, compared with 13.8% in the prior year period.
Effective tax rate was 28.5%.
Net Income increased 189% to $289 million from $100 million in the prior year period, primarily due to the increase in Operating Profit.
Adjusted Net Income increased 186% to $292 million from $102 million in the prior year period (a 131% increase excluding the net losses of $14 million and $30 million in the first quarter of 2023 and 2022, respectively, from our mark-to-market equity investments; a 148% increase if further excluding F/X).
Diluted EPS increased 196% to $0.68 from $0.23 in the prior year period.
Adjusted Diluted EPS increased 188% to $0.69 from $0.24 in the prior year period (a 132% increase excluding the net losses from our mark-to-market equity investments in the first quarter of 2023 and 2022; a 148% increase if further excluding F/X).

Key Financial Results

First Quarter 2023

% Change

System Sales

ARIVA.DE Börsen-Geflüster

Weiter abwärts?

Kurzfristig positionieren in Yum China Holdings Inc
ME4BRS	Ask: 1,51	Hebel: 4,05
mit moderatem Hebel		Zum Produkt

Morgan Stanley

Den Basisprospekt sowie die Endgültigen Bedingungen und die Basisinformationsblätter erhalten Sie hier: ME4BRS,. Beachten Sie auch die weiteren Hinweise zu dieser Werbung. Der Emittent ist berechtigt, Wertpapiere mit open end-Laufzeit zu kündigen.

Kurse

Yum China Holdings Inc

33,91 $

-2,36%

Same-Store Sales

Net New Units

Operating Profit

Yum China

+17

+8

+9

+118

KFC

+17

+8

+9

+91

Pizza Hut

+17

+7

+11

+85

		First Quarter
(in US$ million, except					% Change
per share data and percentages)		2023		2022	Reported	Ex F/X
Operating Profit	$	416	$	191	+118	+134
Adjusted Operating Profit⁽¹⁾	$	419	$	193	+117	+133
Net Income	$	289	$	100	+189	+212
Adjusted Net Income⁽¹⁾	$	292	$	102	+186	+207
Basic Earnings Per Common Share	$	0.69	$	0.23	+200	+222
Adjusted Basic Earnings Per Common Share⁽¹⁾	$	0.70	$	0.24	+192	+213
Diluted Earnings Per Common Share	$	0.68	$	0.23	+196	+222
Adjusted Diluted Earnings Per Common Share⁽¹⁾	$	0.69	$	0.24	+188	+208

⁽¹⁾See "Reconciliation of Reported GAAP Results to non-GAAP Adjusted Measures" included in the accompanying tables of this release for further details.
Note: All comparisons are versus the same period a year ago.
Percentages may not recompute due to rounding.
System sales and same-store sales percentages exclude the impact of F/X. Effective January 1, 2018, temporary store closures are normalized in the same-store sales calculation by excluding the period during which stores are temporarily closed.

CEO and CFO Comments

Joey Wat, CEO of Yum China, commented, "We are pleased to have set new first quarter records for revenues and operating profit. I want to recognize all of our employees whose unwavering dedication has been instrumental in delivering this performance. We started the new year with low visibility into how conditions would unfold. The operating environment was fluid with lingering COVID outbreaks. Through our team's hard work, scenario planning and laser focus to drive sales, we successfully capitalized on critical trading during the Chinese New Year ("CNY") holiday period. Offering delicious food and superior value served us well. We added juicy whole chicken to KFC's signature Golden Bucket to capture at-home consumption around family reunions. Creative twists to our classic Beef Wrap and Supreme Pizza delighted local taste buds. We also fueled traffic with compelling value promotions, including Crazy Thursday, weekday value combos and weekend buy-more-save-more."

Wat continued, "Our performance was enabled by the execution of our RGM (Resilience-Growth-Moat) strategy over the past few years. Today, we are more agile and responsive to the dynamic operating environment. Our robust digital ecosystem has continued to unleash our capabilities in running the entire business, from customer engagement to restaurant operation and supply chain. By planning for multiple scenarios for CNY and incorporating regional variances, we were able to effectively deploy resources as opportunities arose. In addition, we enhanced labor productivity with innovative approaches such as management sharing across stores. As we progress through 2023, we plan to stay nimble to the evolving market conditions. At the same time, we will focus on building sales momentum, expanding our store network, and fortifying our competitive moat to position Yum China for sustainable growth."

Andy Yeung, CFO of Yum China, added, "First quarter sales rebounded significantly year over year and sequentially. Our efforts to focus on driving sales were rewarded, as the country pivoted from strict COVID measures. Margins also improved substantially, benefitting from sales leveraging, cost structure rebasing, and temporary relief from the government and landlords. However, we are still in the early stages of recovery. Sales during the CNY trading period were buoyed by pent-up travel demand, yet same-store sales post-CNY have remained at teens level below 2019. Therefore, driving sales remains our top priority for this year. Consumers are looking for value, so value campaigns would be an important tool to drive store traffic and sales. On the cost side, we expect inflationary pressures to be gradually built-up and the benefit from temporary relief to be phased out over the coming quarters. The pace and the trajectory of the recovery remain uncertain, given the challenging macroeconomic conditions and the lingering effects of the pandemic. Nevertheless, we are confident that with vigorous scenario planning, more flexible cost structures and operational agilities, we can seize opportunities in good times and stay resilient in challenging times."

Share Repurchases and Dividends

During the first quarter, we repurchased approximately 1.0 million shares of Yum China common stock for $62 million at an average price of $60.30 per share. As of March 31, 2023, approximately $1.1 billion remained available for future share repurchases under the current authorization.
The Board declared a cash dividend of $0.13 per share on Yum China's common stock, payable on June 20, 2023 to shareholders of record as of the close of business on May 30, 2023.

Digital and Delivery

The KFC and Pizza Hut loyalty programs exceeded 430 million members combined, as of quarter-end. Member sales accounted for approximately 64% of system sales in the first quarter of 2023.
Delivery contributed approximately 36% of KFC and Pizza Hut's Company sales in the first quarter of 2023, on par with the prior year period. Delivery sales continued to grow even as dine-in traffic improved.
Digital orders, including delivery, mobile orders and kiosk orders, accounted for approximately 89% of KFC and Pizza Hut's Company sales in the first quarter of 2023.

KFC and Pizza Hut Total

Mehr Nachrichten zur Yum China Holdings Inc Aktie kostenlos abonnieren

E-Mail-Adresse

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.