Yum China Holdings, Inc. - YUMC STOCK NEWS

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.

Yum China Holdings (YUMC) announced that its board of directors will consider a possible quarterly dividend on February 9, 2022. This decision aligns with the HKEX regulations requiring prior notice of such meetings. However, no assurance has been given that the dividend will be declared, as no board resolution has yet been adopted. The company, which holds exclusive rights to KFC, Pizza Hut, and Taco Bell in mainland China, operates over 11,415 restaurants across 1,600 cities. The latest update can be found on their investor relations website.

Yum China Holdings, Inc. (YUMC) has announced the expansion of its KFC brand to include regional Chinese cuisines, launching 12 new menu items in 2021 to cater to local tastes. This strategy aims to enhance market penetration and meet changing consumer demands. KFC's local offerings like hot dry noodles and xiaolongbao have received positive customer feedback, contributing to brand loyalty. The launch of hot dry noodles was particularly successful, with over 1 million bowls sold within a week. Yum China continues to collaborate with local brands to ensure authentic flavors and quality ingredients.