Yum China Serves Up Appetizing Financials
What’s new: Yum China Holdings Inc., operator of KFC and Pizza Hut restaurants in China, saw its revenue grow slightly to $2.35 billion in the third quarter from $2.32 billion a year earlier, even as same-store sales dropped 6% under pandemic strain.
The company’s profit nearly doubled to $439 million, driven partly by a one-time equity gain. On an adjusted basis that filtered out that and other factors, the company’s profit for the quarter rose 17% to $263 million.
The detail: The country’s biggest fast-food chain operator said business had improved though it had been hit by reduced travel and tourism, shortened school holidays and “other lingering effects of the Covid-19 outbreak.”
KFC, which was the first American fast-food chain to open in China, has enjoyed wild success with more than 6,000 stores currently operating in the country.
The latest results come after Yum China launched a Hong Kong IPO last month, complementing its existing New York listing. It also announced it passed a major milestone with the opening of its 10,000th China store in July.
Quick Takes are condensed versions of China-related stories for fast news you can use.
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