Exhibit 99.1

Yum China Reports Third Quarter 2020 Results

 

Total Revenues grew 1%. System Sales grew 1% in constant currency

Opened 312 new stores and reached 10,150 stores in total

Reported $556 million Operating Profit and $320 million Adjusted Operating Profit

 

Shanghai, China (October 28, 2020) – Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the third quarter ended September 30, 2020.

 

Impact of COVID-19 Outbreak and Mitigation Efforts  

 

Third quarter operations improved, although still impacted by reduced traffic at transportation and tourist locations, the delayed and shortened school holiday and the other lingering effects of the COVID-19 outbreak. Dine-in volume has been recovering, while delivery and takeaway remained popular options. The Company’s primary focus continues to be safety, efficiency and driving traffic. We launched attractive digital and membership campaigns with strong value propositions to drive sales recovery.

 

Through proactive cost structure realignment and productivity improvements, the Company achieved restaurant margin and operating profit expansions compared to the prior year period. Labor productivity improved year over year, partially due to part-time worker shortages. We intend to increase staffing levels in the coming months to balance service and efficiency.

 

Third Quarter Highlights

 

Completed our secondary listing on the main board of the Hong Kong Stock Exchange and global offering on September 10, 2020, with net proceeds of $2.2 billion.

 

 

Completed the acquisition of an additional 25% equity interest in an unconsolidated affiliate that operates KFC stores in and around Suzhou, China (“Suzhou KFC”), for cash consideration of $149 million, bringing Yum China’s equity interest in Suzhou KFC to 72%. In connection with the acquisition, a non-cash gain of $239 million was recorded from the re-measurement of our previously held equity interest in Suzhou KFC at fair value.

 

Results include the consolidation of Huang Ji Huang since April 2020, and Suzhou KFC since August 2020.

 

 

Total revenues increased 1% year over year to $2.35 billion from $2.32 billion (flat excluding foreign currency translation (“F/X”)).

 

 

Total system sales increased 1% year over year, with declines of 1% at KFC and 6% at Pizza Hut, excluding F/X.

 

Same-store sales declined 6% year over year, with a 6% decline at KFC and 7% decline at Pizza Hut, excluding F/X.

 

Opened 312 new stores during the quarter; total store count reached 10,150 as of September 30, 2020.

 

Restaurant margin was 18.6%, compared with 17.7% in the prior year period.

 

Operating Profit increased 86% year over year to $556 million from $300 million (83% increase excluding F/X), primarily due to the re-measurement gain of Suzhou KFC acquisition.

 

 

Adjusted Operating Profit increased 7% year over year to $320 million from $300 million (5% increase excluding F/X).

 

 

Effective tax rate was 25.6%.

 

Net Income increased 96% to $439 million from $223 million in the prior year period, primarily due to the increase in Operating Profit and gains from our equity investment in Meituan Dianping (“Meituan”).

 

 

Adjusted Net Income increased 17% to $263 million from $223 million in the prior year period (10% increase excluding the $29 million and $12 million net gains in the third quarter of 2020 and 2019, respectively, from our equity investment in Meituan; 8% increase if further excluding F/X).

 

 

Diluted EPS increased 90% to $1.10 from $0.58 in the prior year period.

 

 

Adjusted Diluted EPS increased 14% to $0.66 from $0.58 in the prior year period (5% increase excluding the gains from our equity investment in Meituan in 2020 and 2019; 4% increase if further excluding F/X).

 

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

 


 

 

Key Financial Results

Third Quarter 2020

 

 

 

Year to Date Ended 9/30/2020

 

 

 

% Change

 

 

 

% Change

 

 

 

System Sales

 

 

Same-Store Sales

 

 

Net New Units

 

 

Operating Profit

 

 

 

System Sales

 

 

Same-Store Sales

 

 

Net New Units

 

 

Operating Profit

 

 

Yum China

 

+1

 

 

 

(6

)

 

 

+14

 

 

 

+86

 

 

 

 

(8

)

 

 

(11

)

 

 

+14

 

 

 

(3)

 

 

        KFC

 

(1

)

 

 

(6

)

 

 

+10

 

 

 

(3

)

 

 

 

(7

)

 

 

(9

)

 

 

+10

 

 

 

(24)

 

 

        Pizza Hut

 

(6

)

 

 

(7

)

 

 

+1

 

 

 

+62

 

 

 

 

(19

)

 

 

(16

)

 

 

+1

 

 

 

(58)

 

 

 

 

Third Quarter

 

 

 

 

Year to Date Ended 9/30

 

 

(in US$ million, except

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

per share data and percentages)

 

2020

 

 

 

2019

 

 

Reported

 

 

Ex F/X

 

 

 

 

2020

 

 

 

2019

 

 

Reported

 

 

Ex F/X

 

 

Operating Profit

$

 

556

 

 

$

 

300

 

 

 

+86

 

 

 

+83

 

 

 

$

 

781

 

 

$

 

807

 

 

 

(3

)

 

 

(2

)

 

Adjusted Operating Profit1

$

 

320

 

 

$

 

300

 

 

 

+7

 

 

 

+5

 

 

 

$

 

550

 

 

$

 

807

 

 

 

(32

)

 

 

(31

)

 

Net Income

$

 

439

 

 

$

 

223

 

 

 

+96

 

 

 

+93

 

 

 

$

 

633

 

 

$

 

623

 

 

 

+2

 

 

 

+3

 

 

Adjusted Net Income1

$

 

263

 

 

$

 

223

 

 

 

+17

 

 

 

+15

 

 

 

$

 

462

 

 

$

 

631

 

 

 

(27

)

 

 

(25

)

 

Basic Earnings Per Common Share

$

 

1.13

 

 

$

 

0.59

 

 

 

+92

 

 

 

+90

 

 

 

$

 

1.67

 

 

$

 

1.65

 

 

 

+1

 

 

 

+3

 

 

Adjusted Basic Earnings Per

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Common Share1

$

 

0.68

 

 

$

 

0.59

 

 

 

+15

 

 

 

+14

 

 

 

$

 

1.21

 

 

$

 

1.67

 

 

 

(28

)

 

 

(26

)

 

Diluted Earnings Per Common Share

$

 

1.10

 

 

$

 

0.58

 

 

 

+90

 

 

 

+86

 

 

 

$

 

1.62

 

 

$

 

1.60

 

 

 

+1

 

 

 

+3

 

 

Adjusted Diluted Earnings Per

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Common Share1

$

 

0.66

 

 

$

 

0.58

 

 

 

+14

 

 

 

+12

 

 

 

$

 

1.18

 

 

$

 

1.62

 

 

 

(27

)

 

 

(26

)

 

1 See “Reconciliation of Reported GAAP Results to non-GAAP 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.

Percentages may not recompute due to rounding.

System sales and same-store sales percentages exclude the impact of F/X. Effective January 1, 2018, temporary store closures are normalized in the same-store sales calculation by excluding the period during which stores are temporarily closed.

 

CEO and CFO Comments

Joey Wat, CEO of Yum China, commented, “Our strong third quarter performance again demonstrated our resilience and world-class execution capabilities. Thanks to the hard work and commitment of our employees and business partners, and the trust of our customers, system sales returned to year-over-year growth, while same-store sales recovered to 94% of the prior year period. Despite the COVID-19 pandemic, we continued to generate meaningful profit. Our profitability allowed us to preserve jobs during this difficult period. We accelerated our store expansion and exceeded 10,000 stores, a significant milestone. With new and more flexible store models supported by our strong financial position, we are well-positioned to capture market opportunities in China.”

 

“We are also excited by our secondary listing on the main board of the Hong Kong Stock Exchange in September. This listing enables us to broaden our investor base and provide an additional access point for our stakeholders to invest in our company, in a market that is closer to where we operate, and where our customers and communities thrive,” continued Ms. Wat. “Looking ahead, we are confident in our ability to capture long-term growth opportunities due to our resilient business model, culture of innovation, digital and delivery capabilities and financial strength.”

 

Andy Yeung, CFO of Yum China, added, “Third quarter operations overall improved sequentially. As we entered the quarter, sales were pressured by reduced travel, a shortened school holiday and some regional outbreaks, but our compelling value proposition and effective digital initiatives drove a sales recovery. We expanded restaurant margin by realigning our cost structure and improving productivity. Labor productivity improvement was partially due to the shortage in part-time workers. We intend to increase staffing levels in coming months to balance service and efficiency.”

 

Andy continued, “Looking ahead, we now expect to open more than 900 gross new stores in 2020. We remain cautiously optimistic and continue to expect the recovery to be non-linear and uneven. Although the COVID-19 outbreak in China has improved over the past months, we are not out of the woods yet. The lingering effect remains unpredictable. However, given our strong liquidity position, we will resume our quarterly cash dividend in the fourth quarter. We remain committed to driving sustainable growth and creating long-term value to our shareholders.”

 

2


 

 

Dividends

 

The Board of Directors declared a cash dividend of $0.12 per share on Yum China’s common stock, payable as of the close of business on December 16, 2020 to shareholders of record as of the close of business on November 25, 2020.

 

Digital and Delivery

 

The KFC and Pizza Hut loyalty programs and member sales contributed to year-over-year growth.

 

Delivery contributed to approximately 28% of KFC and Pizza Hut’s Company sales in the third quarter of 2020.

 

Digital orders, including delivery, mobile orders and kiosk orders, accounted for approximately 78% of KFC and Pizza Hut’s Company sales in the third quarter of 2020.

KFC and Pizza Hut Total

 

Third Quarter 2020

 

 

Third Quarter 2019

 

        Member count (as of quarter-end)

 

285 million+

 

 

230 million+

 

        Member sales as % of system sales

 

~60%

 

 

~53%

 

        Delivery as % of Company sales

 

~28%

 

 

~20%

 

        Digital orders as % of Company sales

 

~78%

 

 

~56%

 

 

New-Unit Development and Asset Upgrade

 

The Company opened 312 new stores in the third quarter 2020, mainly driven by development of the KFC brand.

 

The Company remodeled 301 stores in the third quarter 2020.

 

New Units

 

 

Restaurant Count

 

 

 

 

Third Quarter

 

Year to Date

 

 

As of 9/30

 

 

 

 

2020

 

Ended 9/30/2020

 

 

2020

 

 

2019

 

 

Yum China

 

312

 

660

 

 

 

10,150

 

 

 

8,917

 

 

   KFC

 

227

 

534

 

 

 

6,925

 

 

 

6,324

 

 

   Pizza Hut

 

37

 

56

 

 

 

2,277

 

 

 

2,255

 

 

   Others2

 

48

 

70

 

 

 

948

 

 

 

338

 

 

2 Others include Taco Bell, Little Sheep, Huang Ji Huang, East Dawning, COFFii & JOY and Lavazza.

 

Restaurant Margin

Restaurant margin was 18.6% in the third quarter of 2020, compared with 17.7% in the prior year period, primarily attributable to improved productivity and other store cost savings, partially offset by pressure from the same-store sales decline, value promotions and wage inflation.

Third Quarter

 

 

 

Year to Date Ended 9/30

 

 

 

 

2020

 

 

2019

 

 

ppts change

 

 

 

2020

 

 

2019

 

 

ppts change

 

 

Yum China

 

 

18.6

%

 

 

17.7

%

 

 

+0.9

 

 

 

 

14.7

%

 

 

17.0

%

 

 

(2.3

)

 

   KFC

 

 

19.4

%

 

 

20.1

%

 

 

(0.7

)

 

 

 

16.2

%

 

 

18.8

%

 

 

(2.6

)

 

   Pizza Hut

 

 

16.7

%

 

 

11.4

%

 

 

+5.3

 

 

 

 

10.6

%

 

 

12.4

%

 

 

(1.8

)

 

 

2020 Outlook

The Company is updating the following fiscal year 2020 targets:

 

To open more than 900 new stores (gross), an increase compared to the previous target of 800 to 850, primarily due to the acceleration of KFC store expansion, and the inclusion of Huang Ji Huang new builds

 

To make capital expenditures between $500 million and $550 million

 

The Company believes that the COVID-19 outbreak will continue to have a material adverse impact on its operational and financial results in 2020. Future operations, as well as the Company’s cash flows and financial position, may be materially and adversely influenced by further developments related to this global outbreak, including potential additional announcements and actions from governments and local authorities, disruption in our supply chain, our inability to provide safety measures to protect our employees, or other reasons. Nevertheless, the Company believes that it is well-positioned to capture future growth opportunities through its resilient business model, strong capabilities and dedicated team.

 

Note on Non-GAAP Adjusted Measures

Reported GAAP results include Special Items, which are excluded from non-GAAP 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 Non-GAAP Adjusted Measures” within this release.

 

3


 

 

Conference Call

Yum China’s management will hold an earnings conference call at 8:00 p.m. U.S. Eastern Time on Wednesday, October 28, 2020 (8:00 a.m. Beijing/Hong Kong Time on Thursday, October 29, 2020).  

 

Operator-assisted conference calls are not available at the moment. Please register in advance of the conference through the link provided below. Upon registering, you will be provided with participant dial-in numbers, a passcode and a unique registrant ID.

 

 

Pre-registration Link:

https://apac.directeventreg.com/registration/event/9899922

 

Conference ID:

9899922

 

A live webcast of the call may also be accessed at https://edge.media-server.com/mmc/p/73wvmnjy.

 

A replay of the conference call will be available two hours after the call ends until 8:00 a.m. U.S. Eastern Time on Thursday, November 5, 2020 (9:00 p.m. Beijing/Hong Kong Time on Thursday, November 5, 2020) and may be accessed by phone at the following numbers:

 

 

U.S.:

+1 855 452 5696

 

Mainland China:

400 602 2065 or 800 870 0206

 

Hong Kong:

+852 3051 2780

 

U.K.:

+44 20 3701 4269

 

International:

+61 2 9003 4211

 

 

Replay access code:

9899922

 

Additionally, this earnings release, the accompanying slides, a live webcast and an archived webcast of this conference call will be available at Yum China’s Investor Relations website at http://ir.yumchina.com.

 

For important news and information regarding Yum China, including our filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange, visit Yum China's Investor Relations website at http://ir.yumchina.com. Yum China uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.

 

Forward-Looking Statements

 

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including under “2020 Outlook.” We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “project,” “likely,” “will,” “continue,” “should,” “forecast,” “outlook” or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the future strategies, business plans, investment, dividend and share repurchase plans, earnings, performance and returns of Yum China, anticipated effects of population and macroeconomic trends, and the expected impact of the COVID-19 outbreak, the anticipated effects of our innovation, digital and delivery capabilities on growth and beliefs regarding the long-term drivers of Yum China’s business. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: whether we are able to achieve development goals at the times and in the amounts currently anticipated, if at all, the success of our marketing campaigns and product innovation, our ability to maintain food safety and quality control systems, changes in public health conditions, including the COVID-19 outbreak, our ability to control costs and expenses, including tax costs, as well as changes in political, economic and regulatory conditions in China. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-

4


 

looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other reports we file with SEC) for additional detail about factors that could affect our financial and other results.

 

About Yum China Holdings, Inc.

 

Yum China Holdings, Inc. is a licensee of Yum! Brands in mainland China. It has exclusive rights in mainland China to KFC, China's leading quick-service restaurant brand, Pizza Hut, the leading casual dining restaurant brand in China, and Taco Bell, a California-based restaurant chain serving innovative Mexican-inspired food. Yum China also owns the Little Sheep, Huang Ji Huang, East Dawning and COFFii & JOY concepts outright.  Yum China also partners with Lavazza to explore and develop the Lavazza coffee shop concept in China. The Company had 10,150 restaurants in over 1,400 cities at the end of September 2020. Yum China ranked # 361 on the Fortune 500 list for 2020. In 2020, Yum China was named to the Bloomberg Gender-Equality Index and was certified as a Top Employer 2020 in China by the Top Employers Institute, both for the second consecutive year.  For more information, please visit http://ir.yumchina.com.

 

Investor Relations Contact:

 

 

Tel: +86 21 2407 7556 / +852 2267 5801

IR@YumChina.com  

 

 

 

  

Media Contact:

 

 

Tel: +86 21 2407 7510

Media@YumChina.com

 

 

 

5


 

Yum China Holdings, Inc.

Condensed Consolidated Statements of Income

(in US$ million, except per share data)

(unaudited)

 

 

 

Quarter Ended

 

 

% Change

 

Year to Date Ended

 

 

% Change

 

 

 

9/30/2020

 

 

9/30/2019

 

 

B/(W)

 

9/30/2020

 

 

9/30/2019

 

 

B/(W)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company sales

 

$

2,118

 

 

$

2,097

 

 

 

1

 

 

 

$

5,358

 

 

$

6,112

 

 

 

(12

)

 

 

Franchise fees and income

 

 

40

 

 

 

38

 

 

 

4

 

 

 

 

112

 

 

 

113

 

 

 

(1

)

 

 

Revenues from transactions with

   franchisees and unconsolidated affiliates

 

 

170

 

 

 

172

 

 

 

(1

)

 

 

 

488

 

 

 

496

 

 

 

(2

)

 

 

Other revenues

 

 

20

 

 

 

12

 

 

 

64

 

 

 

 

46

 

 

 

26

 

 

 

76

 

 

 

Total revenues

 

 

2,348

 

 

 

2,319

 

 

 

1

 

 

 

 

6,004

 

 

 

6,747

 

 

 

(11

)

 

 

Costs and Expenses, Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food and paper

 

 

660

 

 

 

651

 

 

 

(1

)

 

 

 

1,711

 

 

 

1,896

 

 

 

10

 

 

 

Payroll and employee benefits

 

 

458

 

 

 

455

 

 

 

(1

)

 

 

 

1,236

 

 

 

1,371

 

 

 

10

 

 

 

Occupancy and other operating expenses

 

 

606

 

 

 

619

 

 

 

2

 

 

 

 

1,621

 

 

 

1,804

 

 

 

10

 

 

 

Company restaurant expenses

 

 

1,724

 

 

 

1,725

 

 

 

 

 

 

 

4,568

 

 

 

5,071

 

 

 

10

 

 

 

General and administrative expenses

 

 

127

 

 

 

117

 

 

 

(8

)

 

 

 

339

 

 

 

340

 

 

 

1

 

 

 

Franchise expenses

 

 

17

 

 

 

19

 

 

 

8

 

 

 

 

50

 

 

 

55

 

 

 

8

 

 

 

Expenses for transactions with

   franchisees and unconsolidated affiliates

 

 

164

 

 

 

167

 

 

 

2

 

 

 

 

480

 

 

 

488

 

 

 

2

 

 

 

Other operating costs and expenses

 

 

15

 

 

 

9

 

 

 

(57

)

 

 

 

38

 

 

 

20

 

 

 

(88

)

 

 

Closures and impairment expenses (income), net

 

 

1

 

 

 

(1

)

 

NM

 

 

 

 

30

 

 

 

14

 

 

NM

 

 

 

Other income, net

 

 

(256

)

 

 

(17

)

 

NM

 

 

 

 

(282

)

 

 

(48

)

 

NM

 

 

 

Total costs and expenses, net

 

 

1,792

 

 

 

2,019

 

 

 

11

 

 

 

 

5,223

 

 

 

5,940

 

 

 

12

 

 

 

Operating Profit

 

 

556

 

 

 

300

 

 

 

86

 

 

 

 

781

 

 

 

807

 

 

 

(3

)

 

 

Interest income, net

 

 

11

 

 

 

10

 

 

 

(1

)

 

 

 

28

 

 

 

29

 

 

 

(5

)

 

 

Investment gain

 

 

38

 

 

 

12

 

 

NM

 

 

 

 

75

 

 

 

39

 

 

 

93

 

 

 

Income Before Income Taxes

 

 

605

 

 

 

322

 

 

 

88

 

 

 

 

884

 

 

 

875

 

 

 

1

 

 

 

Income tax provision

 

 

(155

)

 

 

(87

)

 

 

(79

)

 

 

 

(232

)

 

 

(226

)

 

 

(3

)

 

 

Net income – including noncontrolling interests

 

 

450

 

 

 

235

 

 

 

91

 

 

 

 

652

 

 

 

649

 

 

 

 

 

 

Net income – noncontrolling interests

 

 

11

 

 

 

12

 

 

 

7

 

 

 

 

19

 

 

 

26

 

 

 

27

 

 

 

Net Income – Yum China Holdings, Inc.

 

$

439

 

 

$

223

 

 

 

96

 

 

 

$

633

 

 

$

623

 

 

 

2

 

 

 

Effective tax rate

 

 

25.6

%

 

 

26.9

%

 

 

1.3

 

ppts.

 

 

26.3

%

 

 

25.8

%

 

 

(0.5

)

ppts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

$

1.13

 

 

$

0.59

 

 

 

 

 

 

 

$

1.67

 

 

$

1.65

 

 

 

 

 

 

 

Weighted average shares outstanding

    (in millions)

 

 

387

 

 

 

377

 

 

 

 

 

 

 

 

380

 

 

 

378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Common Share

 

$

1.10

 

 

$

0.58

 

 

 

 

 

 

 

$

1.62

 

 

$

1.60

 

 

 

 

 

 

 

Weighted average shares outstanding

    (in millions)

 

 

400

 

 

 

388

 

 

 

 

 

 

 

 

391

 

 

 

389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Dividends Declared Per Common Share

 

$

 

 

$

0.12

 

 

 

 

 

 

 

$

0.12

 

 

$

0.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company sales

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

Food and paper

 

 

31.2

 

 

 

31.0

 

 

 

(0.2

)

ppts.

 

 

31.9

 

 

 

31.0

 

 

 

(0.9

)

ppts.

 

Payroll and employee benefits

 

 

21.6

 

 

 

21.7

 

 

 

0.1

 

ppts.

 

 

23.1

 

 

 

22.4

 

 

 

(0.7

)

ppts.

 

Occupancy and other operating expenses

 

 

28.6

 

 

 

29.6

 

 

 

1.0

 

ppts.

 

 

30.3

 

 

 

29.6

 

 

 

(0.7

)

ppts.

 

Restaurant margin

 

 

18.6

%

 

 

17.7

%

 

 

0.9

 

ppts.

 

 

14.7

%

 

 

17.0

%

 

 

(2.3

)

ppts.

 

Operating margin

 

 

26.2

%

 

 

14.3

%

 

 

11.9

 

ppts.

 

 

14.6

%

 

 

13.2

%

 

 

1.4

 

ppts.

 

 

Percentages may not recompute due to rounding.

6


 

Yum China Holdings, Inc.

KFC Operating Results

(in US$ million)

(unaudited)

 

 

 

Quarter Ended

 

 

% Change

 

Year to Date Ended

 

 

% Change

 

 

 

9/30/2020

 

 

9/30/2019

 

 

B/(W)

 

9/30/2020

 

 

9/30/2019

 

 

B/(W)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company sales

 

$

1,597

 

 

$

1,546

 

 

 

3

 

 

 

$

4,077

 

 

$

4,495

 

 

 

(9

)

 

 

Franchise fees and income

 

 

32

 

 

 

35

 

 

 

(9

)

 

 

 

97

 

 

 

104

 

 

 

(7

)

 

 

Revenues from transactions with

   franchisees and unconsolidated affiliates

 

 

16

 

 

 

16

 

 

 

(4

)

 

 

 

47

 

 

 

48

 

 

 

(2

)

 

 

Other revenues

 

 

1

 

 

 

1

 

 

 

(27

)

 

 

 

1

 

 

 

1

 

 

 

(17

)

 

 

Total revenues

 

 

1,646

 

 

 

1,598

 

 

 

3

 

 

 

 

4,222

 

 

 

4,648

 

 

 

(9

)

 

 

Costs and Expenses, Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food and paper

 

 

504

 

 

 

477

 

 

 

(6

)

 

 

 

1,315

 

 

 

1,403

 

 

 

6

 

 

 

Payroll and employee benefits

 

 

330

 

 

 

311

 

 

 

(6

)

 

 

 

888

 

 

 

942

 

 

 

6

 

 

 

Occupancy and other operating expenses

 

 

453