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Yum China
🇨🇳 NYSE:YUMC
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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.

Total Revenue
$1.9B
Previous year: $2.12B
-10.5%
EPS
$0.35
Previous year: $0.46
-23.9%
Restaurant Margin
13.7%
Gross Profit
$265M
Previous year: $311M
-14.8%
Cash and Equivalents
$674M
Free Cash Flow
$294M
Previous year: $211M
+39.3%
Total Assets
$6.96B
Previous year: $6.73B
+3.5%

Yum China

Yum China

Yum China 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
  • 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

Company Overview

Full financial data and analysis

View Yum China