2023-07-31 23:20:00
Yum China, the operator of KFC, Pizza Hut and other fast-food brands in China, fell more than 3 percent after hours on Monday after reporting weaker-than-expected second-quarter revenue.
Updated August 1, 2023 07:20 CST
Yum China Holdings (YUMC), the operator of KFC, Pizza Hut and other fast-food brands in China, fell more than 3% in after-hours Monday after reporting weaker-than-expected second-quarter revenue Lowered investor expectations for its fiscal third quarter.
Yum China’s second-quarter profit was $197 million, or 47 cents a share, compared with $83 million, or 20 cents a share, a year earlier. Revenue rose 25% to $2.65 billion, the company said. Analysts polled by FactSet expected earnings of 46 cents a share on revenue of $2.72 billion.
“Going into the fiscal third quarter, boosting sales remains our top priority,” said Andy Yeung, the company’s chief financial officer. The company plans to “capture” sales opportunities during the peak summer season, but “it is worth noting that The record restaurant margins in the fiscal third quarter a year ago set a relatively high benchmark due to austerity measures, among others.”
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Yum China Holdings (YUMC), the operator of KFC, Pizza Hut and other fast-food brands in China, fell more than 3% in after-hours Monday after reporting weaker-than-expected second-quarter revenue Lowered investor expectations for its fiscal third quarter.
Yum China’s second-quarter profit was $197 million, or 47 cents a share, compared with $83 million, or 20 cents a share, a year earlier. Revenue rose 25% to $2.65 billion, the company said. Analysts polled by FactSet expected earnings of 46 cents a share on revenue of $2.72 billion.
“Going into the fiscal third quarter, boosting sales remains our top priority,” said Andy Yeung, the company’s chief financial officer. The company plans to “capture” sales opportunities during the peak summer season, but “it is worth noting that The record restaurant margins in the fiscal third quarter a year ago set a relatively high benchmark due to austerity measures, among others.”
Yum China maintains its performance outlook for fiscal year 2023 unchanged, expecting to open 1,100-1,300 new stores, with a capital expenditure of approximately US$700-900 million. The stock ended the regular session up 2.1%.
(This article is translated from MarketWatch. MarketWatch is operated by Dow Jones, the parent company of The Wall Street Journal, but MarketWatch is independent of Dow Jones Newswires and The Wall Street Journal.)
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