Sep 30, 2023

Yum China Q3 2023 Earnings Report

Yum China's financial performance was marked by revenue growth and strategic advancements.

Key Takeaways

Yum China reported a 9% increase in total revenues to $2.91 billion, with system sales growing by 15% in constant currency. The company opened 500 net new stores, bringing the total count to 14,102. Operating profit increased by 2% to $323 million, while net income rose by 18% to $244 million.

Total revenues increased by 9% to $2.91 billion.

System sales grew by 15% in constant currency.

Operating profit increased by 2% to $323 million.

Opened 500 net new stores during the quarter, reaching a total of 14,102 stores.

Total Revenue
$2.91B
Previous year: $2.69B
+8.5%
EPS
$0.59
Previous year: $0.49
+20.4%
Restaurant Margin
17%
Previous year: 18.8%
-9.6%
Gross Profit
$521M
Previous year: $519M
+0.4%
Cash and Equivalents
$1.13B
Previous year: $1.21B
-6.6%
Free Cash Flow
$243M
Previous year: $558M
-56.5%
Total Assets
$12.1B
Previous year: $11.7B
+3.2%

Yum China

Yum China

Yum China Revenue by Segment

Forward Guidance

The Company's fiscal year 2023 targets were updated at Investor Day on September 14, 2023.

Positive Outlook

  • To reach total count of 20,000 stores by 2026.
  • To achieve high-single-to-double-digit CAGR for system sales.
  • To achieve high-single-to-double-digit CAGR for operating profit.
  • To achieve double-digit EPS CAGR from 2024 to 2026, compared to base year 2023 and in constant currency.
  • To return approximately $3 billion to shareholders through quarterly dividends and share repurchases from 2024 to 2026.

Revenue & Expenses

Visualization of income flow from segment revenue to net income