Yum China Q3 2022 Earnings Report
Key Takeaways
Yum China reported a 5% increase in total revenues to $2.68 billion and a 77% increase in operating profit to $316 million. The company opened 239 net new stores, reaching a total of 12,409 stores. Despite COVID-related challenges, Yum China's system sales grew by 5% year over year, outperforming the national restaurant industry average.
Total revenues increased by 5% year over year to $2.68 billion.
Operating Profit increased 77% year over year to $316 million.
Opened 239 net new stores during the quarter, with total store count reaching 12,409.
Same-store sales were flat year over year.
Yum China
Yum China
Yum China Revenue by Segment
Forward Guidance
Yum China remains focused on capturing long-term opportunities in China and maintains its fiscal year 2022 targets.
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.
Challenges Ahead
- Conditions in October continued to deteriorate from September.
- Intermittent outbreaks along with downward pressure on the economy and cautious consumer spending are likely to negatively impact sales momentum.
- Continue to face cost pressures from the inflationary environment.
- Fourth quarter is seasonally a low quarter in terms of sales and profit.
- Profitability could be more susceptible to fluctuations in sales and operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income