Core Insights - Yum China Holdings reported $2.6 billion in revenue for Q4 2024, a year-over-year increase of 4.1% and an EPS of $0.30 compared to $0.25 a year ago, with a slight revenue miss against the Zacks Consensus Estimate of $2.64 billion [1] - The company delivered an EPS surprise of +3.45%, exceeding the consensus EPS estimate of $0.29 [1] Financial Performance Metrics - Total number of restaurants reached 16,395, surpassing the average estimate of 16,354 [4] - Company sales revenue was $2.43 billion, below the average estimate of $2.47 billion, reflecting a year-over-year change of +3.9% [4] - Revenues from transactions with franchisees amounted to $101 million, slightly below the average estimate of $103.57 million, with a year-over-year increase of +12.2% [4] - Franchise fees and income were reported at $22 million, compared to the average estimate of $23.47 million, showing a year-over-year change of +10% [4] Segment Performance - Pizza Hut generated revenues of $510 million, below the average estimate of $519.81 million, with a year-over-year change of +2.8% [4] - KFC reported revenues of $1.95 billion, compared to the average estimate of $1.98 billion, reflecting a year-over-year increase of +4.4% [4] - Other revenues from Pizza Hut were $7 million, exceeding the average estimate of $5.99 million, but showing a year-over-year decline of -12.5% [4] Stock Performance - Yum China's shares returned +4.5% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Earnings Performance - Yum China Holdings reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.25 per share a year ago, representing an earnings surprise of 3.45% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times [2] - The company posted revenues of $2.6 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.64%, compared to year-ago revenues of $2.49 billion [2] Stock Performance and Outlook - Yum China shares have declined approximately 5.5% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Estimate Revisions and Industry Context - The estimate revisions trend for Yum China is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $3.11 billion, and $2.55 on revenues of $12.13 billion for the current fiscal year [7] - The Retail - Restaurants industry, to which Yum China belongs, is currently in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Fourth quarter operating profit grew 36% YoY to $151 million, with an operating profit margin of 5.8%, an increase of 140 basis points YoY[5][7] - Total revenues for the fourth quarter increased 4% YoY to $2.6 billion, a record high for the quarter[5][6] - For the full year, operating profit rose 5% YoY to $1.2 billion, with a core operating profit increase of 12% YoY[5][6] - Net income for Yum China Holdings, Inc. was $115 million for the quarter, up 18% from $97 million in the same quarter last year[31] - Net income for the year ended December 31, 2024, was $980 million, up from $901 million in 2023, representing an increase of 9%[41] - Total revenues for the year ended December 31, 2024, were $11,303 million, a 2.9% increase from $10,978 million in 2023[56] - Operating profit for 2024 was $1,162 million, a slight decrease from $1,106 million in 2023, reflecting a decline of 5.1%[64] Sales and Revenue Growth - Same-store sales reached 99% of the prior year's level, marking the eighth consecutive quarter of same-store transaction growth[5][6] - Digital sales reached $9.6 billion, accounting for approximately 90% of total company sales[5][6] - Company sales for Q4 2024 reached $2,434 million, an increase from $2,343 million in Q4 2023, representing a growth of 3.9%[61] - Company sales for the year ended 12/31/2024 reached $10,651 million, an increase from $10,391 million in 2023, representing a growth of 2.5%[63] Store Expansion and Operations - The company opened 534 net new stores in the fourth quarter, bringing the total store count to 16,395 as of December 31, 2024[5][6] - The company plans to open approximately 1,600 to 1,800 net new stores and allocate capital expenditures of $700 million to $800 million for the 2025 fiscal year[21] - Yum China operates over 16,000 restaurants across more than 2,200 cities in China, making it the largest restaurant company in the country[27] Franchise and Membership - Total membership for KFC and Pizza Hut exceeded 525 million, up 11% YoY, with member sales accounting for approximately 65% of system sales[5][6] - Franchise fees and income for the quarter increased by 8% to $22 million compared to $20 million in the same quarter last year[31] - Revenues from transactions with franchisees rose by 14% to $101 million for the quarter, up from $90 million in the previous year[31] - Franchise fees and income increased by 10% to $2 million in the quarter compared to $1 million in the same quarter last year[37] - Franchise fees and income for 2024 totaled $94 million, up from $89 million in 2023, marking a growth of 5.6%[64] Profitability and Margins - The operating profit margin was 2.6%, reflecting an increase of 160 basis points YoY[21] - The restaurant margin for KFC in 2024 was 16.9%, while Pizza Hut reported a margin of 12.0%, leading to an overall restaurant margin of 15.7%[63] - The company achieved a restaurant margin of 12.0%, with an expansion of 60 basis points YoY due to operational efficiency and favorable commodity prices[21] Shareholder Returns - The company plans to return a total of $4.5 billion to shareholders between 2024 and 2026, including a 50% increase in cash dividends[10][12] - Yum China aims to return $3 billion to shareholders from 2025 through 2026, in addition to the $1.5 billion returned in 2024[21] - The company repurchased $1,249 million worth of common stock during the year, compared to $613 million in the previous year[41] Tax and Expenses - The effective tax rate for the quarter was 27.6%, an increase of 3.4 percentage points from 24.2% in the previous year[31] - Total costs and expenses for the quarter were $2,444 million, a 3% increase from $2,383 million in the prior year[31] - General and administrative expenses for 2024 were $568 million, a decrease from $638 million in 2023, reflecting a reduction of 10.9%[64] - The total costs and expenses for 2024 were $10,141 million, up from $9,872 million in 2023, representing an increase of 2.7%[64] Operational Highlights - KFC's system sales grew 5% YoY, with delivery sales contributing approximately 42% of KFC's company sales[16] - Pizza Hut's operating profit increased 156% YoY in the fourth quarter, reaching $14 million[15] - Pizza Hut's system sales grew 3% YoY, with same-store sales reaching 98% of the prior year's level, an improvement from 94% in Q3[21] - Delivery sales for Pizza Hut increased by 6% YoY, contributing approximately 42% of the company's total sales[21] - The company reported a restaurant profit of $301 million for Q4 2024, compared to $253 million in Q4 2023, which is an increase of 19%[62]

Fourth Quarter Operating Profit Grew 36% and OP Margin1 Expanded 140 Basis PointsSequential Improvement in Same-Store Sales Index and Eighth Consecutive Quarter of Same-Store Transaction GrowthFull Year Operating Profit Rose 5% to $1.2 Billion, Core Operating Profit2 Up 12% and Diluted EPS Up 18%Record 2024 Results: Total Revenues of $11 Billion, 1,751 Net New Stores and $1.5 Billion Capital Returned to Shareholders SHANGHAI, Feb. 6, 2025 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China ...

Core Viewpoint - Yum China Holdings (YUMC) is expected to report quarterly earnings of $0.30 per share, reflecting a year-over-year increase of 20%, with anticipated revenues of $2.67 billion, a 7% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 3.5% lower over the last 30 days, indicating a reevaluation by analysts [2]. - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between these trends and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Other revenues' to reach $39.76 million, a year-over-year change of -0.6% [5]. - 'Revenues- Company sales' are projected at $2.49 billion, indicating a +6.1% change from the prior-year quarter [5]. - 'Revenues- Revenues from transactions with franchisees' are expected to be $104.22 million, reflecting a +15.8% change from the year-ago quarter [5]. - 'Revenues- Franchise fees and income' are forecasted to reach $24.57 million, a +22.9% year-over-year change [6]. - 'Revenues- Pizza Hut' are expected to be $525.27 million, indicating a +5.9% change from the prior-year quarter [6]. Same-store Sales Estimates - The consensus estimate for 'Same-store sales, excluding F/X - KFC' is -0.3%, down from 3% in the same quarter last year [7]. - 'Same-store sales, excluding F/X - Pizza Hut' are projected at -1.8%, compared to 6% in the previous year [7]. - The overall estimate for 'Same-store sales, excluding F/X - Total' is -0.6%, down from 4% year-over-year [7]. Restaurant Count Projections - Analysts forecast 'No of Restaurants - Pizza Hut' to reach 3,724, up from 3,312 in the previous year [8]. - 'No of Restaurants - Others' is estimated at 990, down from 1,036 year-over-year [8]. - 'No of Restaurants - KFC' is projected to be 11,645, compared to 10,296 in the same quarter last year [8]. Market Performance - Over the past month, Yum China shares have recorded returns of +0.1%, while the Zacks S&P 500 composite has changed by +1% [8]. - Based on its Zacks Rank 3 (Hold), Yum China is expected to perform in line with the overall market in the upcoming period [9].

Yum China Holdings, Inc. (YUMC) is scheduled to report fourth-quarter 2024 results on Feb. 6, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 13.2% and rose 17% year over year. Total revenues marginally missed the consensus mark by 0.3% but grew 5.4% from the year-ago quarter.YUMC’s earnings surpassed expectations in each of the trailing four quarters, the avera ...

Company Recognition and Ranking - Yum China has been named a "2025 China Top Employer" for the seventh consecutive year, ranking second overall among 156 companies in China, up from fourth last year, and first in the restaurant industry [1] Employee-Centric Philosophy - The company's "People First" philosophy is reflected in its supportive workplace and employee empowerment initiatives [2] - Yum China is committed to using new technologies to support employees and promote sustainable business growth, including AI for demand forecasting, inventory management, and crew scheduling [3] - The company launched the "Comprehensive Talent Development" program in 2024, offering technology-enhanced learning and development support for employees at all career stages [3] - AI-Generated Content (AIGC) is used in employee services, such as the AIGC-enabled "MyService" platform, which provides 24/7 HR support [3] Recruitment and Talent Attraction - Yum China introduced a metaverse space for its management trainee recruitment program in 2024, making the process more engaging and interactive [4] - The company's "gamified" online and offline interviews have been well-received by Gen Z candidates [4] Employee Well-Being and Benefits - The company plans to expand its "YUMC Care" benefits program in 2025, including increased medical coverage for over 10,000 frontline restaurant managers and broadening its mutual aid fund [5] - Employee well-being remains a cornerstone of Yum China's "People First" philosophy [5] Recognition of Restaurant General Managers (RGMs) - Yum China hosted its annual RGM Convention in Hong Kong in December, welcoming over 11,000 RGMs, aligning with its "RGM No 1" principle [6] Future Focus - The company remains focused on improving employee engagement and well-being, incorporating feedback from initiatives like employee surveys and the RGM Convention [7] Company Overview - Yum China is the largest restaurant company in China, operating over 15,000 restaurants under six brands across approximately 2,200 cities, with around 400,000 employees [10] - Key brands include KFC, Pizza Hut, Lavazza, Little Sheep, Huang Ji Huang, and Taco Bell [10] - The company has a digitalized supply chain and strong digital capabilities, including a loyalty program to enhance customer service [10]

Core Viewpoint - Yum China Holdings, Inc. will report its unaudited financial results for the fourth quarter and fiscal year ending December 31, 2024, on February 6, 2025, before the U.S. market opens [1] Group 1: Earnings Conference Call - Yum China's management will hold an earnings conference call at 7:00 a.m. U.S. Eastern Time on February 6, 2025 [2] - A live webcast of the call will be available, and participants must register in advance to receive dial-in numbers and a unique access PIN [2][3] Group 2: Company Overview - Yum China is the largest restaurant company in China, operating over 15,000 restaurants under six brands across approximately 2,200 cities [4] - The company employs around 400,000 individuals and includes leading brands such as KFC and Pizza Hut in the quick-service and casual dining sectors, respectively [4] - Yum China has a digitalized supply chain and strong digital capabilities, enhancing customer reach and service [4]

ESG Achievements - Yum China ranked number one globally in the Restaurant & Leisure Facilities Industry in the S&P Global 2024 Corporate Sustainability Assessment (CSA) [1] - The company has been included in both the Dow Jones Sustainability Indices (DJSI): World Index and Emerging Market Index for the fifth consecutive year [1] - Yum China is the only company from the Chinese mainland in the consumer services industry included in the DJSI World Index [2] - The company improved its overall CSA score by 5 points compared to the previous year, ranking in the top 1% in 15 out of 24 evaluation criteria [2] - Yum China maintained its AA rating in the MSCI ESG ratings for the third consecutive year, remaining the only restaurant company worldwide with this distinction [3] Sustainability Initiatives - Yum China scaled up the use of renewable energy in its stores and logistics centers, engaged suppliers to adopt renewable energy, and reduced the use of plastic and paper in packaging [5] - The company established a nationwide coffee ground recycling network and was awarded the "Gold Award" for Recycling and Circular Utilization Solutions at the 2024 International Packaging Innovation Forum (IPIF) [5] Company Overview - Yum China is the largest restaurant company in China with approximately 400,000 employees and over 15,000 restaurants across around 2,200 cities [8] - The company operates six brands, including KFC, Pizza Hut, Lavazza, Little Sheep, Huang Ji Huang, and Taco Bell [8] - Yum China has a world-class, digitalized supply chain with an extensive network of logistics centers and an in-house supply chain management system [8] - The company is a Fortune 500 company with a vision to be the world's most innovative pioneer in the restaurant industry [8]

Core Viewpoint - Yum China has been upgraded to a Zacks Rank 2 (Buy), indicating an improvement in the company's earnings outlook, which is expected to drive stock price appreciation [4][5]. Earnings Estimates - Yum China is projected to earn $2.33 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 16.5% [7]. - Over the past three months, the Zacks Consensus Estimate for Yum China has risen by 5% [11]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [10]. - Yum China's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for near-term stock price increases [3][18]. Market Dynamics - The relationship between earnings estimate revisions and stock price movements is strong, with institutional investors playing a significant role in this dynamic [9][15]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating [17].