UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _________________ Commission file number 001-37762 Yum China Holdings, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 8 ...

M N 2 May 2024 CMB International Global Markets | Equity Research | Company Update Yum China (9987 HK) 2Q24E is tough but turnaround is still possible o The 1Q24 results of Yum China were satisfactory, however the catering industry Target Price HK$348.13 remain subdued and hence we have become more cautious about YUMC’s (Previous TP HK$384.17) 2Q24E outlook. But since the turnaround in 2H24E should still be intact, plus Up/Downside 18.3% the massive buyback and dividend payment, we continue to maintain BUY. ...

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company's Q1 performance slightly exceeded expectations, maintaining projected net profits for 2024-2026 at $904 million, $979 million, and $1.044 billion respectively. The company plans to return $3 billion to shareholders through dividends and buybacks during the same period, with expected EPS of $2.24, $2.49, and $2.72, reflecting year-on-year growth of +12%, +11%, and +9% respectively, corresponding to PE ratios of 16x, 15x, and 14x [4] - In Q1 2024, total revenue reached $2.958 billion, a 1% increase (7% excluding currency effects), while operating profit was $374 million, down 10% (5% excluding currency effects). Net profit was $287 million, a decrease of 1% (5% excluding currency effects) [4] - Same-store sales experienced a slight decline due to a high base, while the number of new stores opened increased significantly year-on-year. The system sales for Q1 2024 grew by 6% year-on-year, driven by an 8% contribution from net new stores, despite a 3% decline in same-store sales [4] Financial Summary - The company reported the following financial figures (in million USD): - Revenue: 2021: 9,853; 2022: 9,569; 2023: 10,978; 2024E: 11,903; 2025E: 12,867; 2026E: 13,804 - Net Profit: 2021: 990; 2022: 442; 2023: 827; 2024E: 904; 2025E: 979; 2026E: 1,044 - The projected growth rates for revenue are 15% in 2023, 8% in 2024, and 7% in 2025 [6]

公司研 究 证 券研究 报 告 消费者服务 2024年05月05日 百 胜中国（09987.HK）2024年一季报点评 推 荐 （维持） 目标价：359.65港元 开店加速，持续回购彰显信心 当前价：299.00港元 事项： 华创证券研究所  百胜中国公布2024年一季度业绩，FY2024Q1 总收入增长1%至29.6亿美元。 证券分析师：王薇娜 若不计及外币换算的影响，总收入本应高出 1.54 亿美元，或增长 7%。净利 润为2.87亿美元，同比-1%，若不计及外币换算的影响，净利润yoy+5%。净 电话：010-66500993 利润率9.7%（不考虑外币换算影响-0.2pct）。 邮箱：wangweina@hcyjs.com 评论： 执业编 号：S0360517040002  24Q1系统销售额增长6%，主要得益于8%的净新增门店贡献，肯德基开店加 速，开店来看，本季度KFC门店净新增307家，为去年同期净新增门店数的 公司基本数据 两倍多，净新增加盟店58家（目前肯德基品牌整体门店中，加盟店占比12%）， 总股本(万股) 39034.03 期末KFC门店数达到10603家。必胜客本季度净新增113 ...

公开链接：https://seekingalpha.com/article/4687395-yum-china-holdings-inc-yumc-q1-2024- earnings-call-transcript 注：以下材料仅为公开资料整理，不涉及分析师的研究观点和投资建议，记录和翻译可能产生误差， 仅供参考，如有异议，请联系删除 去年第一季度调整后的营业利润是我们分拆以来最高的。这个季度是第二高的。 开店策略方面，我们仍然看好中国。我们认为中国市场在未来几年将为我们提供空白空间。在第一季 度，我们突破了15000家门店的里程碑，净开了378家新店。我们花了25年的时间在中国建立了第一家 5000家门店，花了8年的时间建立了接下来的5000家门店。剩下的5000家店只需要4年。我们的目标是 到2026年再增加5000家门店。 与某些报道相反，中国继续快速发展，每年都有数百个新的购物中心、住宅综合体和商业开发项目开 业。二线及以下城市的城市化和长期消费升级，机会巨大，住房和生活成本更便宜。另外，我们预计 今年大约30%的新店将开在新的城市或战略点，比如交通要地和旅游要地。 灵活门店：第一季度，三分之二的新店 ...

证券研究报告 | 2024年05月05日 百胜中国（09987.HK） 增持 高基数影响同店短期承压略降，门店扩张节奏趋势向好 核心观点 公司研究·财报点评 2024Q1实现经调归母净利润2.87亿美元，略优于市场一致预期。2024Q1， 社会服务·酒店餐饮 公司总收入29.58亿美元/+1.3%，收入表现略低于彭博一致预期（30.21 证券分析师：曾光 证券分析师：钟潇 亿）；经调整经营利润3.74亿美元/-10.1%；经调整归母净利润为2.87 0755-82150809 0755-82132098 zengguang@guosen.com.cn zhongxiao@guosen.com.cn 亿美元/-1.7%，略优于彭博预期（2.66亿美元）。 S0980511040003 S0980513100003 经营数据方面，整体同店收入同比-3%，其中KFC/PZH分别-2%/-5%，高 证券分析师：张鲁 基数下增速下滑；系统销售同增6%，其中KFC/PZH分别同增7%/4%；餐 010-88005377 zhanglu5@guosen.com.cn 厅利润率为17.6%/-2.7pct，其中KFC/PZH ...

Investment Rating - Maintains a "Recommend" rating [2][3] Core Views - 1Q 2024 revenue was $2.96 billion, yoy+1% (excluding currency impact, yoy+7%) [1] - Net profit was $287 million, yoy-1% (excluding currency impact, yoy+5%) [1] - Adjusted net profit was $287 million, yoy-2% (excluding currency impact, yoy+4%) [1] - System sales grew by 6% in 1Q, driven by an 8% net increase in new stores [1] - KFC system sales increased by 7%, with revenue of $2.23 billion (yoy+1%, excluding currency impact, yoy+7%) [1] - Pizza Hut system sales grew by 4%, with revenue of $595 million (flat yoy, excluding currency impact, yoy+5%) [1] - Same-store sales declined by 3%, with KFC and Pizza Hut same-store sales down by 2% and 5% respectively [1] - Restaurant operating margin was 17.6%, down 2.7 percentage points yoy [1] - KFC restaurant operating margin was 19.3%, down 2.9 percentage points yoy [1] - Pizza Hut restaurant operating margin was 12.5%, down 1.7 percentage points yoy [1] Development and Shareholder Returns - Net addition of 378 stores in 1Q, with KFC and Pizza Hut adding 307 and 113 stores respectively [2] - Total store count reached 15,022 by the end of 1Q 2024, with KFC and Pizza Hut accounting for 10,603 and 3,425 stores respectively [2] - Share buybacks and cash dividends reached $745 million in 1Q, a record high for a single quarter [2] - Full-year 2024 development plan remains unchanged, targeting net store additions of 1,500-1,700 and capital expenditure of $700-850 million [2] - Plans to return approximately $1.5 billion to shareholders through quarterly cash dividends and share buybacks in 2024 [2] Financial Forecasts - Forecasted revenue for 2024-2026: $11.6 billion, $12.852 billion, and $13.938 billion respectively [3] - Forecasted net profit attributable to shareholders for 2024-2026: $829 million, $940 million, and $1.047 billion respectively [3] - Forecasted EPS for 2024-2026: $2.12, $2.41, and $2.68 respectively [3] - P/E ratios for 2024-2026: 18x, 16x, and 14x respectively [3] Operational Metrics - Gross margin for 2024-2026: 19.73%, 20.20%, and 20.68% respectively [6] - Net margin for 2024-2026: 7.15%, 7.32%, and 7.51% respectively [6] - ROE for 2024-2026: 12.91%, 13.25%, and 13.26% respectively [6] - ROIC for 2024-2026: 10.34%, 10.84%, and 10.98% respectively [6]

Investment Rating - The report maintains a "Buy" rating for Yum China (YUMC.US/9987.HK) with a target price of USD 49.9 and HKD 389.3, indicating a potential upside of 24.7% and 32.2% respectively [1][2][12] Core Views - Yum China is expected to continue its expansion in lower-tier cities, driving revenue growth despite short-term pressure on same-store sales and profit margins due to increased promotional activities [1] - The company aims to reach 20,000 stores by 2026, which is ahead of previous expectations, and plans to return over USD 30 billion to investors through buybacks and dividends from 2024 to 2026 [1][2] - The report anticipates a cautious outlook for Q2 2024 due to high comparative base effects from Q2 2023, but expects a recovery in same-store sales and system-wide revenue in the second half of 2024 [1][2] Financial Performance Summary - For 1Q24, system sales for KFC and Pizza Hut grew by 7% and 4% year-on-year, while same-store sales declined by 2% and 5% respectively, aligning with market expectations [1][7] - The company reported a revenue of USD 2,958 million for 1Q24, with a gross profit margin of 22.2%, down from 24.3% in 1Q23 [7][8] - The forecast for 2024 includes a revenue growth of high single digits year-on-year, with a slight contraction in operating profit margin by 50 basis points [1][2] Financial Projections - Revenue projections for Yum China are as follows: - 2024E: USD 11,692 million (up 6.5% YoY) - 2025E: USD 12,631 million (up 8.0% YoY) - 2026E: USD 13,605 million (up 7.7% YoY) [2][4] - Net profit projections are: - 2024E: USD 842 million (up 1.8% YoY) - 2025E: USD 932 million (up 10.7% YoY) - 2026E: USD 1,063 million (up 14.1% YoY) [2][4] Valuation Metrics - The report provides the following valuation metrics: - PE ratio for 2024E: 19.0 - EV/EBITDA for 2024E: 7.9 - ROE for 2024E: 13.8% [2][4]

Core Insights - Yum China Holdings, Inc. (YUMC) reported strong first-quarter 2024 results, with earnings and revenues exceeding expectations, driven by robust system sales growth and new unit contributions [1][2] Earnings & Revenue Discussion - Adjusted earnings per share (EPS) for Q1 2024 were 71 cents, surpassing the Zacks Consensus Estimate of 66 cents, and up 2.9% from 69 cents a year ago [2] - Quarterly revenues reached $2.96 billion, exceeding the consensus mark of $2.94 billion, and increased by 1% year-over-year; excluding foreign currency translation, revenues grew by 7% [2] - Total system sales rose by 6% year-over-year, attributed to an 8% contribution from net new units; KFC and Pizza Hut system sales increased by 7% and 4%, respectively, excluding foreign currency translation [2] - Same-store sales reached 97% of the previous year's level, despite strong performance in the same period last year [2] Operating Highlights - Total costs and expenses for Q1 2024 were $2.6 billion, up from $2.5 billion in the prior-year quarter [3] - Restaurant margin decreased to 17.6% from 20.3% a year ago, impacted by increased value-for-money offerings and wage inflation, partially offset by favorable commodity prices [3] - Adjusted operating profit was $374 million, down from $419 million a year ago; adjusted net income was $287 million compared to $292 million in the prior-year quarter [3] Balance Sheet - As of March 31, cash and cash equivalents were $883 million, down from $1.13 billion as of December 31, 2023; inventories were $345 million compared to $424 million [4] - In Q1, Yum China repurchased nearly 16.6 million shares for $681 million, with $853 million remaining for the buyback program [4] - A quarterly cash dividend of 16 cents per common share was declared, payable on June 18 to shareholders of record as of May 28 [4] Unit Development and Other Updates - Yum China opened 378 net new stores in Q1 2024, bringing the total restaurant count to 15,022 [5] - Delivery contributed 39% to KFC and 37% to Pizza Hut's company sales; digital orders accounted for 89% of company sales, consistent with the previous year's levels [5] - Loyalty programs for KFC and Pizza Hut saw membership growth, increasing to over 485 million [5] 2024 Outlook - Yum China projects 1,500-1,700 new store openings in 2024, with capital expenditures expected to be between $700-$850 million [6]

Certain metrics fell in the latest quarter, but the company is promising some good things for the year.Shares of restaurant company Yum China (YUMC -6.42%) -- parent company of KFC, Pizza Hut, and more in China -- dropped on Tuesday after it reported financial results for the first quarter of 2024. The company grew sales by opening new restaurants, but sales at existing restaurants fell, which was not something investors cared for. As of 10 a.m. ET, Yum China stock was down 6%, but it had been down 10% earl ...