YUM! China reported earnings today with results generally better than many had expected.
Same-restaurant sales were up 2%. This was better than the flat growth than analysts had expected.
KFC same-restaurant sales were up 3% and Pizza Hut sales continued to struggle -4%.
Other Fourth Quarter Highlights
- Total revenues increased 2% year over year to $1.91 billion from $1.87 billion (7% ex-currency translation).
- Total system sales grew 6% year over year, with 9% growth at KFC partially offset by a 2% decline at Pizza Hut, excluding F/X.
- Restaurant margin was 11.5%, as compared with 11.6% in the prior year period.
- Operating Profit increased 77% year over year to $84 million from $47 million (84% year over year increase excluding F/X).
- Adjusted Operating Profit increased to $96 million from $47 million in the prior year period.
- Net Income increased to $74 million from a net loss of $107 million in the prior year period.
- Adjusted Net Income decreased 19% to $46 million, primarily driven by the mark to market loss of $27 million on our equity investment in Meituan Dianping.
- Adjusted Diluted EPS decreased 14% to $0.12 from $0.14 in the prior year period (36% year over year increase excluding the mark to market loss impact of our equity investment in Meituan Dianping).
