Yum China (YUMC) Reports Q1 Earnings: What Key Metrics Have to Say

Core Viewpoint - Yum China Holdings reported a revenue of $2.98 billion for the quarter ended March 2025, showing a year-over-year increase of 0.8%, but fell short of the Zacks Consensus Estimate of $3.11 billion, resulting in a surprise of -4.19% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.77, compared to $0.71 a year ago, indicating an increase [1] - The EPS surprise was -1.28%, with the consensus EPS estimate being $0.78 [1] Key Metrics - Total number of restaurants: 16,642, below the average estimate of 16,807 [4] - Number of Pizza Hut restaurants: 3,769, compared to the average estimate of 3,841 [4] - Number of KFC restaurants: 11,943, slightly below the average estimate of 11,950 [4] Revenue Breakdown - Revenues from transactions with franchisees: $121 million, compared to the average estimate of $124.88 million, representing a year-over-year change of +13.1% [4] - Other revenues: $32 million, below the average estimate of $34.35 million, with no change year-over-year [4] - Franchise fees and income: $27 million, compared to the average estimate of $29.98 million, showing a year-over-year increase of +8% [4] - Company sales: $2.80 billion, below the average estimate of $2.91 billion, with a year-over-year change of +0.3% [4] - KFC company sales: $2.21 billion, compared to the average estimate of $2.30 billion, reflecting a +0.7% change year-over-year [4] - KFC franchise fees and income: $21 million, slightly below the average estimate of $21.62 million, with a year-over-year increase of +16.7% [4] - KFC other revenues: $1 million, significantly below the average estimate of $4.52 million, showing a year-over-year decline of -80% [4] - KFC revenues from transactions with franchisees: $16 million, compared to the average estimate of $16.71 million, with a year-over-year increase of +14.3% [4] Stock Performance - Shares of Yum China have returned -11.8% over the past month, while the Zacks S&P 500 composite changed by -0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]