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Dec 31, 2021
Yum China Q4 2021 Earnings Report
Yum China's financial performance was impacted by COVID-19 outbreaks, yet the company remained profitable and achieved revenue growth.
Key Takeaways
Yum China's fourth-quarter results were influenced by widespread COVID-19 outbreaks, leading to stringent public health measures. Despite these challenges, the company achieved a 1% increase in total revenues, reaching $2.29 billion. However, same-store sales declined by 11%.
Total revenues increased 1% year over year to $2.29 billion.
Same-store sales decreased 11% year over year.
Operating Profit increased to $633 million, primarily due to a non-cash gain.
Opened 563 gross new stores, or 373 net new stores.
Yum China
Yum China
Yum China Revenue by Segment
Revenue by Segment
KFC Revenue
CapyFin.comPizza Hut Revenue
CapyFin.com Forward Guidance
The Company currently expects approximately 1,000 to 1,200 net new stores and capital expenditures in the range of $800 million to $1 billion.
Positive Outlook
- Approximately 1,000 to 1,200 net new stores.
- Stepping up investments in supply chain.
- Stepping up investments in infrastructure.
- Stepping up investments in digital.
- Capital expenditures in the range of $800 million to $1 billion.
Challenges Ahead
- Significant uncertainties from the COVID-19 situation.
- Headwinds from the external environment.
- Challenging and volatile business and operating environment given the uncertainties of COVID-19.
- Weak macro environment.
- Softening consumer sentiment and inflation headwinds.
Revenue & Expenses
Visualization of income flow from segment revenue to net income