Jun 30, 2022

Yum China Q2 2022 Earnings Report

Yum China's results were impacted by the most severe COVID outbreaks to date, but extraordinary efforts mitigated the impact and delivered $81 million in operating profit.

Key Takeaways

Yum China's Q2 2022 results were significantly impacted by COVID-19 outbreaks, with revenue decreasing by 13% year over year to $2.13 billion. However, the company demonstrated resilience through cost management and operational adjustments, delivering $81 million in operating profit.

Total revenues decreased 13% year over year to $2.13 billion.

Same-store sales decreased 16% year over year.

Opened 53 net new stores during the quarter, reaching a total of 12,170 stores.

Operating Profit decreased 65% year over year to $81 million.

Total Revenue
$2.13B
Previous year: $2.45B
-13.2%
EPS
$0.2
Previous year: $0.42
-52.4%
Restaurant Margin
12.1%
Previous year: 15.8%
-23.4%
Gross Profit
$278M
Previous year: $386M
-28.0%
Cash and Equivalents
$1.15B
Previous year: $1.21B
-5.1%
Free Cash Flow
$296M
Previous year: $304M
-2.6%
Total Assets
$12.1B
Previous year: $11.3B
+6.6%

Yum China

Yum China

Yum China Revenue by Segment

Forward Guidance

Yum China remains focused on capturing long-term opportunities in China and their fiscal year 2022 targets remain unchanged.

Positive Outlook

  • To open approximately 1,000 to 1,200 net new stores.
  • To make capital expenditures in the range of approximately $800 million to $1 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income