News

Pizza Hut performance drags down Yum China Q3 results

October 31, 2018

Yum China today reported its unaudited Q3 financial results for the period that ended Sept. 30, including a 1 percent drop in year-over-year same store sales stemming from a 5 percent drop in such sales at Pizza Hut that drove down the total number despite a 1 percent increase in  KFC system sales growth. 

Other key highlights of the third quarter, include: 

• 4 percent year-over-year increase in revenues to $2.2 billion from $2.1 billion.
• 4 percent year-over-year total system sales growth, including 6 percent growth at KFC partially offset by 2 percent drop at Pizza Hut. 
• 17.6 percent restaurant margin, compared with 18 percent in the prior year period.
• 2 percent increase in year-over-year operating profit to $269 million from $264 million.
• 15 percent increase in net income to $203 million from $176 million in the prior year period. 
• 16 percent increase in diluted EPS increased to $0.51 from $0.44 the prior year period. 

The company's board declared a 12-cent cash dividend, payable Dec. 18, to stockholders of record as of the close of business on Nov. 27, a news release said. Yum China also opened 195 new restaurants during the quarter, bringing total store count to 8,313 across more than 1,200 cities.

"Looking ahead, we are excited by the opportunity to grow our portfolio in China's western quick-service restaurant and casual dining markets," Yum China CEO Joey Wat, said in the release. "We will continue to add a range of store formats across the spectrum of low- and high-tier cities to drive growth. We will also build out our digital and delivery eco-system so that we can better serve our customers and create a seamless online to offline experience," said Ms. Wat.

As of today, the Company has repurchased approximately 11.3 million shares for $406 million, including 3.4 million shares for $110 million in October 2018. There is approximately $1 billion remaining under the new share repurchase authorization.