NYSE$YUMC

Yum China Holdings Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Yum China's results were impacted by the COVID-19 outbreak, but the company grew total revenues and sustained operating profit.

Yum China's first quarter results were impacted by the COVID-19 outbreak, which caused significant volatility in business operations. Despite these challenges, the company grew total revenues by 4% year over year to $2.67 billion and sustained operating profit at $191 million.

  • Total revenues increased 4% year over year to $2.67 billion.
  • Total system sales decreased 4% year over year.
  • Same-store sales decreased 8% year over year.
  • Opened 329 net new stores during the quarter; total store count reached 12,117 as of March 31, 2022.

Headline financials

Total Revenue

$2.67B

Previous: $2.56B+4.3%
EPS (adj)

$0.24

Previous: $0.54-55.6%
Restaurant margin

13.8%

Previous: 18.7%-26.2%
Capital Expenditures

-$205M

Previous: -$165M-24.2%
Free Cash Flow

-$105M

Previous: $65M-261.5%
Net Income

$100M

Previous: $230M-56.5%
Operating Income

$191M

Previous: $342M-44.2%
Gross Profit

$2.67B

Previous: $2.56B+4.3%
Cash & Equivalents

$1.05B

Previous: $1.08B-3.4%
Total Assets

$12.6B

Previous: $10.8B+16.6%
Stock-Based Comp

$11M

Previous: $10M+10.0%

Revenue & EPS history

Yum China · Revenue · Quarterly

$2.67B

Q1 2022+4.3%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Yum China · $2.56B total across 2 segments · Q1 2022

  • KFC
    $2.02B+10.1%
  • Pizza Hut
    $547M+1.1%

Forward guidance

Yum China remains focused on capturing long-term opportunities in China and the company's fiscal year 2022 targets are unchanged.

Tailwinds

  • To open approximately 1,000 to 1,200 net new stores.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.5%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+3.0%

Avg return

30 days after

71%

32 / 45 earnings

Positive

+15.6%

Q3 2018

Best reaction

-16.1%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.9%+1.0%-10.4%
Q4 2025+1.8%+13.3%+2.1%
Q3 2025+2.0%-0.9%+6.0%
Q1 2025-7.2%-6.8%-6.5%
Q4 2024+9.1%+4.3%+9.2%
Q3 2024+7.3%+9.4%+4.5%
Q2 2024+13.0%+14.0%+14.0%
Q1 2024-7.9%-3.1%-12.1%
Q4 2023+12.4%+12.2%+14.4%
Q3 2023-16.1%-14.6%-18.7%
Q2 2023-4.0%-6.3%-9.9%
Q1 2023+0.8%+0.8%-8.0%
Q4 2022+2.7%+4.6%-1.4%
Q3 2022+12.0%+20.8%+32.5%
Q2 2022+4.8%+3.3%+6.4%
Q1 2022+1.8%-3.8%+7.1%
Q4 2021+2.7%+11.1%-3.7%
Q3 2021-2.4%-1.9%-13.9%
Q2 2021+1.9%+1.0%-1.5%
Q1 2021+5.8%+5.0%+11.9%
Q4 2020-4.3%+2.0%+3.3%
Q3 2020+0.4%-2.5%+8.2%
Q2 2020-3.5%-0.7%+7.4%
Q1 2020+8.7%+1.0%-3.4%
Q4 2019-1.3%-4.3%-3.9%
Q3 2019+1.2%-4.8%+1.4%
Q2 2019+0.2%-0.6%-0.2%
Q1 2019+5.6%+5.2%-13.9%
Q4 2018+9.6%+12.9%+15.4%
Q3 2018+15.6%+15.4%+14.7%
Q2 2018-2.2%-4.6%+7.2%
Q1 2018-13.5%-10.7%-8.1%
Q4 2017-6.6%-9.3%-5.6%
Q3 2017+2.3%+6.6%+4.8%
Q2 2017-13.2%-7.3%-7.8%
Q1 2016+1.9%+6.1%+10.0%
Q1 2017+10.0%+12.1%+21.0%
Q1 2015+0.7%+1.8%+19.8%
Q2 2015+0.7%+1.8%+19.8%
Q4 2014+0.7%+1.8%+19.8%
Q2 2016+0.7%+1.8%+19.8%
Q4 2016-5.8%-7.7%-9.0%
Q3 2015+4.9%+11.3%-2.8%
Q4 2015+4.9%+11.3%-2.8%
Q3 2016+4.9%+11.3%-2.8%

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