Jun 30, 2024

Yum China Q2 2024 Earnings Report

Yum China achieved record second quarter revenue, driven by same-store transaction growth and new unit growth, improved OP margin, and attained record second quarter operating profit.

Key Takeaways

Yum China reported a record second quarter revenue of $2.68 billion, driven by an 8% net new unit contribution. Operating profit grew by 4% year-over-year to $266 million, and diluted EPS increased by 17% year-over-year to $0.55.

Total system sales grew 4% year-over-year, excluding F/X, driven by 8% net new unit contribution.

Total revenues increased 1% year-over-year to $2.68 billion, a record-high for the second quarter.

Operating profit grew 4% year-over-year to $266 million, a record level for the second quarter.

Diluted EPS increased 17% year-over-year to $0.55, a record level for the second quarter.

Total Revenue
$2.68B
Previous year: $2.65B
+0.9%
EPS
$0.55
Previous year: $0.47
+17.0%
Gross Profit
$441M
Previous year: $448M
-1.6%
Cash and Equivalents
$1.04B
Previous year: $1.19B
-12.3%
Free Cash Flow
$230M
Previous year: $264M
-12.8%
Total Assets
$11.6B
Previous year: $11.7B
-0.9%

Yum China

Yum China

Yum China Revenue by Segment

Forward Guidance

The Company’s targets for the 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