Welcome to our dedicated page for Yum China Holdings news (Ticker: YUMC), a resource for investors and traders seeking the latest updates and insights on Yum China Holdings stock.
Yum China Holdings, Inc. (NYSE: YUMC, HKEX: 9987) is the largest restaurant chain in China, operating over 15,000 restaurants across more than 2,000 cities. With flagship brands like KFC and Pizza Hut, and additional brands including Little Sheep, East Dawning, Taco Bell, Huang Ji Huang, COFFii & Joy, and Lavazza, Yum China caters to a wide array of culinary tastes and dining styles.
Founded in 2016 after separating from Yum! Brands, Yum China has grown to become a Fortune 500 company with a mission to make every life taste beautiful. The company employs over 400,000 people and generates revenue through its own restaurants and franchise fees. In 2022, Yum China achieved nearly USD 10 billion in systemwide sales with approximately 13,000 units, including 9,094 KFCs and 2,903 Pizza Huts.
Yum China continues to innovate with its digital ecosystem and supply chain capabilities. Their industry-leading digital platform and loyalty program enable fast and efficient customer service. Recent strategic initiatives include expanding their price range to appeal to broader customer bases and launching engaging campaigns with popular e-games to attract younger audiences.
Recent Achievements:
- Reported record total revenue and adjusted operating profit for Q3 2023.
- Added 1,155 new stores in the first nine months of 2023, targeting 1,400-1,600 new stores for the full year.
- Increased share repurchase authorization by $1 billion, with plans to return $3 billion to shareholders from 2024 to 2026.
- Collaborated with Lavazza to expand the coffee brand in China.
- Launched innovative pet-friendly Pizza Hut restaurants in collaboration with Beijing Aita Animal Protection Foundation.
Current Projects:
- Enriching core menu offerings at KFC and Pizza Hut to drive incremental traffic.
- Expanding brand presence in lower-tier cities to capture demand from long-term consumption upgrades.
- Innovative store formats such as one-person hotpot modules for Little Sheep.
- Building awareness and fostering a culture of care with pet-friendly dining experiences and animal welfare initiatives.
CEO Joey Wat and CFO Andy Yeung emphasize the company's robust supply chain, digital innovation, and strategic growth plan to achieve its ambitious goals, including operating 20,000 stores by 2026 and returning significant value to shareholders.
Yum China Holdings, Inc. (YUMC) launched the "Million Thanks, Million Gifts" initiative to honor medical workers in Shanghai amidst rising COVID-19 challenges. As part of the initiative, the company provided hundreds of free meals and prepared over 30,000 care packages with ready-to-eat products for these workers. The event coincided with International Labor Day, reflecting the company's commitment to community support. Additionally, Yum China's brands have consistently supplied food for medical personnel since early April, contributing significantly to local efforts during the outbreak.
Yum China Holdings, Inc. has launched KFC's first Green Pioneer Stores in Hangzhou and Beijing, marking a significant step in its climate strategy. These stores aim for net-zero value chain greenhouse gas emissions by 2050 and are expected to reduce GHG emissions by approximately 15% annually. Key features include solar panels, an IoT-based energy management system, and eco-friendly materials. This initiative supports Yum China's commitment to sustainable practices and raises customer awareness about eco-friendly behavior through various channels including a 'Virtual Green Store' on the KFC Super APP.
Yum China Holdings, Inc. (YUMC) announced that its board will consider the declaration of a quarterly dividend on or around May 4, 2022. This decision is in compliance with HKEX rules that require prior notice for board meetings concerning dividend declarations. Although the board has not yet adopted a resolution for the dividend, this step signals Yum China's intent to return value to shareholders if approved. Shareholders should stay tuned for updates, as the dividend amount and payment date will be disclosed if the resolution passes.
Yum China Holdings, Inc. announced the appointment of Johnson Huang as its first Chief Customer Officer, effective May 1, 2022. This role aims to enhance customer engagement within the company's culture. Warton Wang, the current Chief Development Officer, will succeed Huang as General Manager of KFC. Huang, with over 15 years at Yum China, previously led KFC's growth and digital initiatives. Wang brings 24 years of operational experience, with a history of enhancing KFC's efficiency. CEO Joey Wat emphasized the importance of digital capabilities for future growth.
Yum China Holdings, Inc. (YUMC) will announce its unaudited financial results for Q1 2022 on May 3, 2022, at 4:30 p.m. ET. The management will conduct an earnings conference call at 8:00 p.m. ET the same day. Interested parties can access a live webcast via their investor relations website. The company holds exclusive rights to KFC, Pizza Hut, and Taco Bell in mainland China, operating 12,163 restaurants in over 1,600 cities as of February 2022. Yum China continues to be recognized for its sustainability efforts and gender equality initiatives.
Yum China Holdings has increased its share repurchase authorization by $1 billion, now totaling $2.4 billion. Since 2017, the company repurchased around 24 million shares for $971 million. The remaining authorization stands at approximately $1.4 billion. From 2017 to 2021, Yum China generated $5.6 billion in operating cash flow and $3.2 billion in free cash flow. The Board's decision reflects confidence in the company's financial resilience and commitment to returning value to shareholders while investing for future growth.
Yum China has reported significant challenges in its first quarter of 2022 due to the resurgence of COVID-19, particularly the Omicron variant. Same-store sales decreased by approximately 4% year-over-year in January and February, with a steep decline of 20% in the first two weeks of March. Operating profit is expected to fall between $165 million and $200 million, down 20% year-over-year, affected by sales deleveraging and cost inflation. As of March 13, over 1,100 stores were temporarily closed or offering only takeaway services, highlighting the ongoing operational impacts.
Yum China Holdings, Inc. (YUMC) announced an update regarding its listing under the Holding Foreign Companies Accountable Act. On March 8, 2022, Yum China was identified as a Commission-Identified Issuer following its annual report filing. The SEC's identification places Yum China at risk of being delisted from the NYSE by early 2024 unless the PCAOB can inspect its auditor or the Act is amended. The company continues to evaluate strategic options as it monitors market developments.
Yum China Holdings reported a 1% increase in total revenues for Q4 2021, reaching $2.29 billion, amid ongoing COVID-19 challenges. For the full year, revenues rose 19% to $9.85 billion. Operating profit surged to $1.39 billion for 2021, primarily due to a $618 million non-cash gain from re-measuring an equity interest in Hangzhou KFC. However, same-store sales dropped 11% year-over-year in Q4, with restaurant margins decreasing to 7.5%. The company opened a record 1,806 new stores in 2021, aiming for 1,000-1,200 new stores in 2022.
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