Sep 30, 2024

Yum China Q3 2024 Earnings Report

Yum China achieved robust sales growth and margin expansion, leading to a 33% increase in diluted EPS.

Key Takeaways

Yum China reported strong Q3 2024 results with a 4% increase in total system sales, driven by net new unit contribution. Total revenues increased by 5% to $3.07 billion. Diluted EPS grew by 33% year over year. The company opened 438 net new stores and is stepping up capital returns to shareholders by 50% to $4.5 billion for 2024-2026.

Total system sales grew 4% year over year, excluding foreign currency translation, primarily due to 7% net new unit contribution.

Total revenues increased 5% year over year to $3.07 billion, an all-time quarter high.

Diluted EPS increased 33% year over year to $0.77.

Yum China is stepping up capital returns to shareholders by 50% to $4.5 billion for 2024-2026.

Total Revenue
$3.07B
Previous year: $2.91B
+5.4%
EPS
$0.77
Previous year: $0.59
+30.5%
Restaurant Margin
17%
Previous year: 17%
+0.0%
Delivery Contribution
40%
Gross Profit
$550M
Previous year: $521M
+5.6%
Cash and Equivalents
$2.53B
Previous year: $1.13B
+123.8%
Free Cash Flow
$248M
Previous year: $243M
+2.2%
Total Assets
$11.8B
Previous year: $12.1B
-2.2%

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