YUMC - Why Yum China Holdings Stock Plunged Today
2023-11-01 15:38:06 ET
Shares of Yum China (NYSE: YUMC) were down 18.8% as of 3:00 p.m. ET Wednesday after the Chinese fast-food company announced weaker-than-expected third-quarter 2023 results.
Yum China's quarterly revenue climbed 9% year over year (15% at constant currency) to $2.91 billion, translating to adjusted ( non-GAAP ) net income of $248 million, or $0.59 per share (up 20% from $0.49 per share in the same year-ago period). Analysts, on average, were modeling adjusted earnings of $0.62 per share on revenue of $3.09 billion.
Digging deeper into Yum China's results, sales grew 15% at KFC and 13% at Pizza Hut at constant currency in the country, including same-store sales increases of 4% and 2%, respectively. Yum China's remaining growth was driven by 500 net new store openings during the quarter, bringing its total store count to 14,102 as of Sept. 30, 2023. Management said the company remains on track to meet its recently revised full-year target of 1,400 to 1,600 net new store openings for the year.
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Why Yum China Holdings Stock Plunged Today