Yum China Beats Earnings Estimates, Same-Store Sales Gain 5%

Yum China Holdings, Inc. ( (NYSE:YUMC) ) just released its fiscal 2017 fourth-quarter financial results, posting adjusted earnings of $0.19 per share and revenues of $2.18 billion.

Currently, YUMC is a Zacks Rank #4 (Sell), but that could change based on today’s results. The stock is currently down 2.98% to $42.98 per share in after-hours trading shortly after its earnings report was released.

Yum China:

Beat earnings estimates. The company posted adjusted earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.17. Adjusted earnings exclude a $161 million one-time tax charge. Including this charge, Yum China witnessed a loss of 23 cents per share.

Beat revenue estimates. The company saw revenue figures of $2.18 billion, beating our consensus estimate of $2.16 billion.

Total revenues were up about 9% year-over-year, including 11% growth at KFC and 6% growth at Pizza Hut. Same-store sales grew 5% on the back of a 7% increase at KFC and a 1% gain at Pizza Hut. The company opened 339 new restaurants in the quarter.

“2017 marks the first full year of Yum China as an independently listed company and we are pleased with high single-digit system sales growth and double-digit operating profit growth,” said current CEO Micky Pant. “I am very pleased to hand over the reins to Joey Wat as our new CEO from March 1st; she has demonstrated an excellent track record and is the right person leading Yum China as we head into 2018, with challenging sales and profit laps particularly in the first half of the year.”

Mobile payments accounted for about 53% of total company sales in the fourth quarter. KFC now boasts over 110 million loyalty program members, while Pizza Hut now exceeds 35 million members. Delivery accounted for 14% of total sales in fiscal 2017.

Here’s a graph that looks at Yum China’s recent earnings performance:

Yum China Holdings, Inc. is a licensee of Yum! Brands (NYSE:YUM) primarily in mainland China. The company have rights to KFC, China's quick-service restaurant concept, Pizza Hut, casual dining restaurant brand and Taco Bell. Yum China Holdings, Inc. is based in Shanghai, China.

Check back later for our full analysis on YUMC’s earnings report!

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