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Dec 31, 2023
Yum China Q4 2023 Earnings Report
Yum China's Q4 2023 performance showed strong growth, driven by system sales increase and strategic expansion.
Key Takeaways
Yum China reported a strong fourth quarter in 2023, with total revenues increasing by 19% to $2.49 billion and operating profit growing by 170% to $110 million. The company opened 542 net new stores, reaching a total of 14,644 stores. They also increased the dividend by 23% and stepped up 2024 share repurchases to $1.25 billion
Total system sales grew 21% year over year excluding foreign currency translation, driven by net new unit contribution and same-store sales growth.
Opened 542 net new stores in the fourth quarter, reaching a total of 14,644 stores as of December 31, 2023.
Operating profit grew 170% to $110 million, with core operating profit growing 324%.
The board declared a 23% increase in cash dividend to $0.16 per share and the Company plans to repurchase $1.25 billion of its common stock in 2024.
Revenue by Segment
Forward Guidance
In 2024, Yum China plans to open approximately 1,500 to 1,700 net new stores and make capital expenditures in the range of approximately $700 million to $850 million.
Positive Outlook
- Open approximately 1,500 to 1,700 net new stores.
- Reach a total store count of 20,000 by 2026.
- Achieve a high-single-to-double-digit CAGR for system sales and operating profit, and a double-digit CAGR for EPS, using 2023 as the base year excluding F/X.
- Return a minimum of $3 billion to shareholders through quarterly dividends and share repurchases.
- Make capital expenditures in the range of approximately $700 million to $850 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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