Exhibit 99.1

Yum China Reports Third Quarter 2019 Results

 

Total revenues grew 5% or 8% in constant currency;

Total system sales grew 8% and same-store sales grew 2% in constant currency

 

Shanghai, China (October 30, 2019) – Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC) today reported unaudited results for the third quarter ended September 30, 2019. Reported GAAP results include Special Items, which are excluded from adjusted measures.  Special Items are not allocated to any segment and therefore only impact reported GAAP results of Yum China.  See “Reconciliation of Reported GAAP Results to Adjusted Measures” within this release.

 

Third Quarter Highlights

 

Total revenues increased 5% year over year to $2.3 billion from $2.2 billion (8% year over year increase excluding foreign currency translation (“F/X”)).

 

 

Total system sales grew 8% year over year, with growth of 10% at KFC and 3% at Pizza Hut, excluding F/X.

 

Same-store sales grew 2% year over year, with a 3% increase at KFC and a 1% increase at Pizza Hut, excluding F/X.

 

Restaurant margin was 17.7%, compared with 17.6% in the prior year period.

 

Operating Profit increased 11% year over year to $300 million from $269 million (14% year over year increase excluding F/X).

 

Effective tax rate was 26.9%.

 

Net Income increased 11% to $223 million from $203 million in the prior year period, primarily due to the increase in operating profit and mark to market gain from our equity investment in Meituan Dianping.

 

 

Diluted EPS increased 14% to $0.58 from $0.51 in the prior year period (8% year over year increase excluding the $0.03 per share mark to market gain from our equity investment in Meituan Dianping).

 

Opened 231 new restaurants during the quarter, bringing total store count to 8,917 across more than 1,300 cities.

 

Key Financial Results

Third Quarter 2019

 

 

 

Year to Date Ended 9/30/2019

 

 

 

% Change

 

 

 

% Change

 

 

 

System Sales

 

 

Same-Store Sales

 

 

Net New Units

 

 

Operating Profit

 

 

 

System Sales

 

 

Same-Store Sales

 

 

Net New Units

 

 

Operating Profit

 

 

Yum China

 

+8

 

 

 

+2

 

 

 

+7

 

 

 

+11

 

 

 

 

+9

 

 

 

+4

 

 

 

+7

 

 

 

(6

)

 

   KFC

 

+10

 

 

 

+3

 

 

 

+9

 

 

 

+12

 

 

 

 

+11

 

 

 

+4

 

 

 

+9

 

 

 

+4

 

 

   Pizza Hut

 

+3

 

 

 

+1

 

 

 

+2

 

 

 

(29

)

 

 

 

+3

 

 

 

+1

 

 

 

+2

 

 

 

+9

 

 

 

 

Third Quarter

 

 

 

 

Year to Date Ended 9/30

 

 

(in US$ million, except

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

for per share data and percentages)

 

2019

 

 

 

2018

 

 

Reported

 

 

Ex F/X

 

 

 

 

2019

 

 

 

2018

 

 

Reported

 

 

Ex F/X

 

 

Operating Profit

$

 

300

 

 

$

 

269

 

 

 

+11

 

 

 

+14

 

 

 

$

 

807

 

 

$

 

857

 

 

 

(6

)

 

 

(1

)

 

Adjusted Operating Profit1

$

 

300

 

 

$

 

269

 

 

 

+11

 

 

 

+14

 

 

 

$

 

807

 

 

$

 

759

 

 

 

+6

 

 

 

+12

 

 

Net Income

$

 

223

 

 

$

 

203

 

 

 

+11

 

 

 

+14

 

 

 

$

 

623

 

 

$

 

634

 

 

 

(2

)

 

 

+4

 

 

Adjusted Net Income1

$

 

223

 

 

$

 

203

 

 

 

+11

 

 

 

+14

 

 

 

$

 

631

 

 

$

 

560

 

 

 

+13

 

 

 

+19

 

 

Basic Earnings Per Common Share

$

 

0.59

 

 

$

 

0.53

 

 

 

+11

 

 

 

+15

 

 

 

$

 

1.65

 

 

$

 

1.64

 

 

 

+1

 

 

 

+6

 

 

Adjusted Basic Earnings Per

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Common Share1

$

 

0.59

 

 

$

 

0.53

 

 

 

+11

 

 

 

+15

 

 

 

$

 

1.67

 

 

$

 

1.45

 

 

 

+15

 

 

 

+21

 

 

Diluted Earnings Per Common Share

$

 

0.58

 

 

$

 

0.51

 

 

 

+14

 

 

 

+16

 

 

 

$

 

1.60

 

 

$

 

1.59

 

 

 

+1

 

 

 

+6

 

 

Adjusted Diluted Earnings Per

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Common Share1

$

 

0.58

 

 

$

 

0.51

 

 

 

+14

 

 

 

+16

 

 

 

$

 

1.62

 

 

$

 

1.41

 

 

 

+15

 

 

 

+21

 

 

1 See “Reconciliation of Reported GAAP Results to Adjusted Measures” included in the accompanying tables of this release for further details.

Note:  All comparisons are versus the same period a year ago.

NM refers to changes over 100%, from negative to positive amounts or from zero to an amount.

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

 


The following information was filed by Yum China Holdings, Inc. (YUMC) on Wednesday, October 30, 2019 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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