STKS - Yum China drops as company says Q3 adj. operating profit may be 50-60% lower

Yum China (NYSE:YUMC) announces that operations are heavily affected by lockdowns amid the newest COVID outbreak, which is the worst in China since 2020. Over 500 company restaurants were closed or offered only takeaway and delivery services at the peak of the outbreak. The company says same-store sales in August declined by mid-teens percentage Y/Y, or close to an approximately 20% decline compared to August 2019. Adjusted operating income may be 50-60% lower Y/Y due to the sharply reduced sales, in addition to input cost and wage inflation. Yum China expects the recovery of sales to take time, but hopes to aggressively expand with 1,300 new stores by the end of 2021 as lockdowns let up. Shares are down 2.97% AH. Yum China is highly ranked by WS analysts but is in the middle of Seeking Alpha's Quant restaurant ratings, while STK and Kona Grill owner The One Hospitality Group (NASDAQ:STKS) and Famous

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Yum China drops as company says Q3 adj. operating profit may be 50-60% lower