Market Overview

Yum China Reports Second Quarter 2019 Results

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SHANGHAI, July 30, 2019 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE:YUMC) today reported unaudited results for the second quarter ended June 30, 2019. Reported GAAP results include Special Items, which are excluded from adjusted measures. Special Items are not allocated to any segment and therefore only impact reported GAAP results of Yum China. See "Reconciliation of Reported GAAP Results to Adjusted Measures" within this release.

Second Quarter Highlights

  • Total revenues increased 3% year over year to $2.12 billion from $2.07 billion (10% year over year increase excluding foreign currency translation ("F/X")).
  • Total system sales grew 10% year over year, with growth of 12% at KFC and 4% at Pizza Hut, excluding F/X.
  • Same-store sales grew 4% year over year, with a 5% increase at KFC and a 1% increase at Pizza Hut, excluding F/X.
  • Restaurant margin was 14.7%, as compared with 15.1% in the prior year period.
  • Operating Profit increased 6% year over year to $204 million from $193 million (14% year over year increase excluding F/X).
  • Effective tax rate was 20.0%.
  • Net Income increased 24% to $178 million from $143 million in the prior year period, primarily due to the increase in operating profit and mark to market gain from our equity investment in Meituan Dianping.
  • Diluted EPS increased 28% to $0.46 from $0.36 in the prior year period (14% year over year increase excluding the $0.04 per share mark to market gain from our equity investment in Meituan Dianping).
  • Opened 178 new restaurants during the quarter, bringing total store count to 8,751 across more than 1,300 cities.

Key Financial Results


Second Quarter 2019



Year to Date Ended 6/30/2019



% Change



% Change



System Sales


Same-Store
Sales


Net New
Units


Operating
Profit



System Sales


Same-Store
Sales


Net New
Units


Operating
Profit


Yum China

+10


+4


+7


+6



+10


+4


+7


(14)


   KFC

+12


+5


+8


+3



+12


+5


+8


(1)


   Pizza Hut

+4


+1


+2


+50



+3


+1


+2


+49




Second Quarter




Year to Date Ended 6/30


(in US$ million, except







% Change









% Change


per share data and percentages)


2019



2018


Reported


Ex F/X




2019



2018


Reported


Ex F/X


Operating Profit

$

204


$

193


+6


+14



$

507


$

588


(14)


(8)


Adjusted Operating Profit[1]

$

204


$

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