Mainland China's largest restaurant chain, Yum China (NYSE: YUMC) , is starting to lap depressed financial results from when the pandemic started over a year ago, and it's creating some dramatic operating results upside for the company. But COVID-19 is still a serious problem for the sole operator of KFC and Pizza Hut in China (it licenses the two fast-food brands from former parent Yum! Brands (NYSE: YUM) ).
No bother. Yum China had already built a huge digital presence before the pandemic, and that's helping it remain in growth mode despite ongoing disruption. This is the restaurant growth stock investors need for a post-pandemic world.
Yum China is already on a path to recovery, but the road ahead will still be fraught with challenges. New restrictions on travel within China during the more than one-month-long Chinese New Year period in January and February took a bite out of some of the rebound as KFC, Pizza Hut, and Yum China's wholly owned brands started to lap the initial outbreak of COVID-19 from last year. The company cited government statistics showing travel during first-quarter 2021 was down some 40% from 2020 levels and 70% from 2019.
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Here's the 1 Reason Yum China Is the Restaurant Growth Stock You Need