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Yum China (YUMC) Reports In-Line Q2 EPS

July 5, 2017 4:30 PM EDT

Yum China (NYSE: YUMC) reported Q2 EPS of $0.27, in-line with the analyst estimate of $0.27. Revenue for the quarter came in at $1.59 billion versus the consensus estimate of $1.6 billion.

  • Total system sales grew 7%, including growth of 8% at KFC and 7% at Pizza Hut1, excluding foreign currency translation ("F/X").
  • Same-store sales grew 3%, including growth of 4% at KFC, flat at Pizza Hut.
  • Opened 90 new restaurants during the quarter.
  • Total restaurant margin increased 2.7 percentage points to 15.3%, primarily due to the impact of retail tax structure reform and also driven by same-store sales leverage, partially offset by wage inflation and commodity inflation.
  • Operating profit increased 64%, and 73% excluding F/X, primarily due to the impact of retail tax structure reform and also driven by same-store sales leverage. F/X negatively impacted reported operating profit by $8 million.
  • Net income increased 39% to $107 million.
  • Adjusted EBITDA increased 15% to $259 million.
  • Basic EPS increased 33% to $0.28 and diluted EPS increased 29% to $0.27.

For earnings history and earnings-related data on Yum China (YUMC) click here.



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