Yum China Holdings, Inc. - YUMC STOCK NEWS

Yum China Holdings, Inc. (YUMC) announced its application for a voluntary conversion from secondary to primary listing on the Hong Kong Stock Exchange as of August 15, 2022. The HKEX acknowledged this application, with a Special Meeting scheduled for October 11, 2022 to seek stockholder approval on key items, including share issuance and repurchase mandates. If approved, the conversion will take effect on October 24, 2022. CEO Joey Wat emphasized that this move would enhance shareholder access, increase liquidity, and mitigate delisting risks from the NYSE.

Yum China Holdings reported a second quarter operating profit of $81 million, despite severe COVID-related disruptions that impacted the restaurant industry in China. Total revenues decreased by 13% year-over-year to $2.13 billion, with same-store sales declining by over 20%. The company opened 53 new stores, reaching a total of 12,170 locations as of June 30, 2022. While exploring recovery strategies, Yum China expects slow and uneven restaurant traffic recovery due to ongoing COVID outbreaks.

Yum China Holdings has begun constructing a 61,000 square meter Supply Chain Management Center in Shanghai's Jiading district, which is set to be completed in 2024. This facility will enhance Yum China's supply chain operations, supporting over 12,000 restaurants in eastern China and serving as a cold chain transit hub. The project incorporates modern automation and sustainability measures, like solar panels and wind generation, aiming to strengthen business resilience and growth. The company plans to expand its logistics network significantly over the next five years.

Yum China (YUMC) announced its board will consider declaring a quarterly dividend on July 29, 2022. This decision is made in compliance with HKEX regulations, which require advance notice for board meetings regarding dividends. However, as of the press release date, no resolution for the dividend has been adopted, leaving its declaration uncertain. Yum China operates over 12,117 restaurants in mainland China and has achieved recognition in sustainability indices and as a top employer.

Yum China Holdings (YUMC) will announce its unaudited financial results for the second quarter ending June 30, 2022, on July 28, 2022, at 4:30 p.m. ET. An earnings conference call will follow at 8:00 p.m. ET the same day. Investors can access the call via a live webcast or phone registration. The company operates brands like KFC and Pizza Hut in China and had over 12,117 restaurants in 1,700 cities as of March 2022. Yum China ranked #359 on the Fortune 500 list in 2022.

Yum China Holdings, Inc. has initiated a dispute resolution process with Yum! Brands over royalty fees related to delivery and aggregator platform charges. The company contends that these fees should not incur royalties, disputing approximately $2 million for Q1 2022 and seeking to recover additional payments from November 2016 to December 2021. Yum China does not expect the dispute to materially affect its operations or financial results moving forward, maintaining its long-term relationship with Yum! Brands.

Yum China reported Q1 2022 results, achieving total revenues of $2.67 billion, a 4% year-over-year increase. Despite challenges from COVID-19, it opened 329 net new stores, bringing the total to 12,117. However, same-store sales dropped by 8%, with operating profit declining 44% to $191 million. The Omicron variant's impact led to significant temporary store closures, with over 3,000 stores affected by April. Looking ahead, Yum China anticipates potential operating losses in Q2 due to falling sales and rising costs.