Mar 31, 2024

Yum China Q1 2024 Earnings Report

Yum China's Q1 2024 performance reflected solid sales growth and strategic expansion.

Key Takeaways

Yum China reported a 1% increase in total revenues to $2.96 billion, with a 6% system sales growth excluding F/X. The company achieved a diluted EPS of $0.71, up 4% YoY, and opened a record 378 net new stores, surpassing 15,000 total stores. A record $745 million was returned to shareholders through share repurchases and cash dividends.

Total system sales grew 6% year over year excluding foreign currency translation, primarily attributable to 8% net new unit contribution.

Total store count reached 15,022 as of March 31, 2024, with a record 378 net new stores opened in the quarter.

Total revenues increased 1% year over year to $2.96 billion, or 7% increase YoY excluding F/X.

Yum China returned approximately $745 million to shareholders in the first quarter, the highest quarterly return in the Company's history.

Total Revenue
$2.96B
Previous year: $2.92B
+1.4%
EPS
$0.71
Previous year: $0.69
+2.9%
Gross Profit
$543M
Previous year: $607M
-10.5%
Cash and Equivalents
$2.4B
Previous year: $1.11B
+115.6%
Free Cash Flow
$253M
Previous year: $328M
-22.9%
Total Assets
$11.3B
Previous year: $12B
-5.6%

Yum China

Yum China

Yum China Revenue by Segment

Forward Guidance

The Company’s targets for 2024 fiscal year remain unchanged from the prior period's disclosures.

Positive Outlook

  • Open approximately 1,500 to 1,700 net new stores.
  • Make capital expenditures in the range of approximately $700 million to $850 million.
  • Return a Company record-setting $1.5 billion to shareholders through quarterly cash dividends and share repurchases.

Revenue & Expenses

Visualization of income flow from segment revenue to net income