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Jun 30, 2020
Yum China Q2 2020 Earnings Report
Total revenues recovered to 89% of prior year and 169 new stores were opened despite COVID-19 impact.
Key Takeaways
Yum China's second quarter results showed resilience with over 99% of stores open and system sales recovering to 96% of the prior year in constant currency. The company opened 169 new stores and reported $128 million in operating profit despite the ongoing impact of COVID-19.
Total revenues declined 11% year over year to $1.90 billion, a 7% decline excluding F/X.
Total system sales declined 4% year over year, with declines of 6% at KFC and 12% at Pizza Hut, excluding F/X.
Same-store sales declined 11% year over year, with a 10% decline at KFC and 12% decline at Pizza Hut, excluding F/X.
Operating Profit declined 38% year over year to $128 million, a 35% decline excluding F/X.
Yum China
Yum China
Yum China Revenue by Segment
Revenue by Segment
KFC Revenue
CapyFin.comPizza Hut Revenue
CapyFin.com Forward Guidance
The Company is affirming the fiscal year 2020 targets and believes that the COVID-19 outbreak will continue to have a material and extended adverse impact on its operational and financial results in 2020.
Positive Outlook
- To open between 800 and 850 new stores (gross), excluding Huang Ji Huang
- To make capital expenditures between $500 million and $550 million
- The Company is well-positioned to capture future growth opportunities through its resilient business model
- The Company is well-positioned to capture future growth opportunities through its strong capabilities
- The Company is well-positioned to capture future growth opportunities through its dedicated team
Challenges Ahead
- COVID-19 outbreak will continue to have a material and extended adverse impact on its operational and financial results in 2020
- Future operations, as well as the Company’s cash flows and financial position, may be materially and adversely influenced by further developments related to this global outbreak
- Potential additional announcements and actions from governments and local authorities
- Disruption in our supply chain
- Inability to provide safety measures to protect our employees
Revenue & Expenses
Visualization of income flow from segment revenue to net income