Exhibit 99.1

 

Yum China Reports Q2 Same-Store Sales Growth of 3% and Operating Profit Growth of 64%;

Loyalty Members Surpassed 100 Million; Mobile Payment Exceeded 40% of Total Company Sales

Shanghai, China (July 5, 2017) – Yum China Holdings, Inc. (the “Company” or “Yum China”) (NYSE: YUMC) today reported unaudited results for the second quarter ended May 31, 2017.

Second Quarter Highlights

 

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.

 

1 Beginning with the quarter ended May 31, 2017, Pizza Hut Casual Dining and Pizza Hut Home Service were combined and reported together as the Pizza Hut reportable segment. Segment financial information for prior periods has been re-cast to align with this change in segments.

Key Results

 

 

 

Second Quarter

 

 

Year to Date

 

 

 

 

% Change

 

 

% Change

 

 

 

 

System

Sales

 

Same-Store

Sales

 

Net New

Units

 

Operating

Profit

 

 

System

Sales

 

Same-Store

Sales

 

Net New

Units

 

Operating

Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yum China

 

+7

 

+3

 

+6

 

+64

 

 

+6

 

+2

 

+6

 

+34

 

 

KFC

 

+8

 

+4

 

+5

 

+41

 

 

+6

 

+3

 

+5

 

+20

 

 

Pizza Hut

 

+7

 

-

 

+9

 

+157

 

 

+8

 

+1

 

+9

 

+95

 

 

 

Second Quarter

 

 

Year to Date

 

 

(in US$ million, except

 

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

% Change

 

 

for per share data and percentages)

2017

 

 

2016

 

 

Reported

 

Ex F/X

 

 

2017

 

 

2016

 

 

Reported

 

Ex F/X

 

 

Operating Profit

$

143

 

 

$

87

 

 

+64

 

+73

 

 

$

397

 

 

$

296

 

 

+34

 

+41

 

 

Net Income

$

107

 

 

$

77

 

 

+39

 

+46

 

 

$

282

 

 

$

222

 

 

+27

 

+34

 

 

Adjusted EBITDA

$

259

 

 

$

226

 

 

+15

 

+21

 

 

$

579

 

 

$

505

 

 

+14

 

+21

 

 

Basic EPS

$

0.28

 

 

$

0.21

 

 

+33

 

+39

 

 

$

0.73

 

 

$

0.61

 

 

+20

 

+25

 

 

Diluted EPS

$

0.27

 

 

$

0.21

 

 

+29

 

+35

 

 

$

0.71

 

 

$

0.61

 

 

+16

 

+23

 

 

Note: All comparisons are versus the same period a year ago. Consistent with prior years, Yum China’s fiscal second quarter includes March, April and May results. Percentages may not recompute due to rounding.

System sales and same-store sales percentages exclude the impact of F/X. Adjusted EBITDA is a non-GAAP financial measure. See Reconciliation of Reported Results to Non-GAAP Measures included in the accompanying tables of this release for further details.

Yum China Holdings, Inc. •   Website http://ir.yumchina.com


The following information was filed by Yum China Holdings, Inc. (YUMC) on Wednesday, July 5, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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