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Sep 30, 2022
Yum China Q3 2022 Earnings Report
Yum China's financial performance was marked by revenue growth and significant operating profit increase, driven by strategic execution and resilience amidst ongoing COVID-19 impacts.
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
Revenue by Segment
KFC Revenue
CapyFin.comPizza Hut Revenue
CapyFin.com 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