NYSE$YUMC

Yum China Holdings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Yum China's Q1 2024 performance reflected solid sales growth and strategic expansion.

Yum China reported a 1% increase in total revenues to $2.96 billion, with a 6% system sales growth excluding F/X. The company achieved a diluted EPS of $0.71, up 4% YoY, and opened a record 378 net new stores, surpassing 15,000 total stores. A record $745 million was returned to shareholders through share repurchases and cash dividends.

  • Total system sales grew 6% year over year excluding foreign currency translation, primarily attributable to 8% net new unit contribution.
  • Total store count reached 15,022 as of March 31, 2024, with a record 378 net new stores opened in the quarter.
  • Total revenues increased 1% year over year to $2.96 billion, or 7% increase YoY excluding F/X.
  • Yum China returned approximately $745 million to shareholders in the first quarter, the highest quarterly return in the Company's history.

Headline financials

Total Revenue

$2.96B

Previous: $2.92B+1.4%
EPS (adj)

$0.71

Previous: $0.69+2.9%
Capital Expenditures

-$189M

Previous: -$179M-5.6%
Free Cash Flow

$98M

Previous: $110M-10.9%
Net Income

$287M

Previous: $289M-0.7%
Operating Income

$374M

Previous: $416M-10.1%
Gross Profit

$2.96B

Previous: $2.92B+1.4%
Cash & Equivalents

$883M

Previous: $1.11B-20.5%
Total Assets

$11.3B

Previous: $12B-5.6%
Stock-Based Comp

$10M

Previous: $13M-23.1%

Revenue & EPS history

Yum China · Revenue · Quarterly

$2.96B

Q1 2024+1.4%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Yum China · $2.79B total across 2 segments · Q3 2023

  • KFC
    $2.19B+8.4%
  • Pizza Hut
    $599M+6.8%

Forward guidance

The Company’s targets for 2024 fiscal year remain unchanged from the prior period's disclosures.

Tailwinds

  • Open approximately 1,500 to 1,700 net new stores.
  • Make capital expenditures in the range of approximately $700 million to $850 million.
  • Return a Company record-setting $1.5 billion to shareholders through quarterly cash dividends and share repurchases.

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 2024

Historical avgQ1 2024

+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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