Market Overview

Yum China Reports Third Quarter 2019 Results

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SHANGHAI, Oct. 29, 2019 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE:YUMC) today reported unaudited results for the third quarter ended September 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.

Third Quarter Highlights

  • Total revenues increased 5% year over year to $2.3 billion from $2.2 billion (8% year over year increase excluding foreign currency translation ("F/X")).
  • Total system sales grew 8% year over year, with growth of 10% at KFC and 3% at Pizza Hut, excluding F/X.
  • Same-store sales grew 2% year over year, with a 3% increase at KFC and a 1% increase at Pizza Hut, excluding F/X.
  • Restaurant margin was 17.7%, compared with 17.6% in the prior year period.
  • Operating Profit increased 11% year over year to $300 million from $269 million (14% year over year increase excluding F/X).
  • Effective tax rate was 26.9%.
  • Net Income increased 11% to $223 million from $203 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 14% to $0.58 from $0.51 in the prior year period (8% year over year increase excluding the $0.03 per share mark to market gain from our equity investment in Meituan Dianping).
  • Opened 231 new restaurants during the quarter, bringing total store count to 8,917 across more than 1,300 cities.

Key Financial Results


Third Quarter 2019



Year to Date Ended 9/30/2019


% Change



% Change


System Sales


Same-Store
Sales


Net New
Units


Operating
Profit



System Sales


Same-Store
Sales


Net New
Units


Operating
Profit

Yum China

+8


+2


+7


+11



+9


+4


+7


(6)

   KFC

+10


+3


+9


+12



+11


+4


+9


+4

   Pizza Hut

+3


+1


+2


(29)



+3


+1


+2


+9

 



Third Quarter




Year to Date Ended 9/30

(in US$ million, except







% Change









% Change

for per share data and percentages)


2019



2018


Reported


Ex F/X



2019


2018


Reported


Ex F/X

Operating Profit

$

300


$

269


+11


+14



$

807


$

857


(6)


(1)

Adjusted Operating Profit[1]

$

300


$

269


+11


+14



$

807

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