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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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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