{"id":482848,"date":"2021-04-27T16:34:33","date_gmt":"2021-04-27T20:34:33","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/yum-china-reports-first-quarter-2021-results\/"},"modified":"2021-04-27T16:34:33","modified_gmt":"2021-04-27T20:34:33","slug":"yum-china-reports-first-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/yum-china-reports-first-quarter-2021-results\/","title":{"rendered":"Yum China Reports First Quarter 2021 Results"},"content":{"rendered":"
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Total Revenues grew 46%. System Sales grew 34% and Same-Store Sales were up 10% in constant currency<\/h2>\n

Opened 315 new stores and reported $342 million Operating Profit<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n SHANGHAI<\/span>, April 27, 2021<\/span> \/PRNewswire\/ — Yum China Holdings, Inc. (the “Company” or “Yum China<\/span>“) (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the first\u00a0quarter ended March 31, 2021<\/span>.<\/p>\n

\n Impact of COVID-19 Outbreak and Mitigation Efforts<\/b>\u00a0<\/p>\n

\n Yum China<\/span> reported substantial year-over-year growth in the first quarter, as the Company began to lap prior year periods that were impacted by COVID-19. System sales growth was mainly attributable to same-store sales growth, new unit contribution and substantially fewer temporary store closures. Operating Profit growth was further driven by lower commodity prices and productivity gains.<\/p>\n

First quarter sales were impacted by regional resurgences of COVID-19 before the Chinese New Year and tightened public health measures across China. The tightened measures and associated consumer caution resulted in smaller gatherings and a noticeably reduced volume of travel. Our transportation and tourist locations, representing high single digits of our store mix, were significantly affected by the decline in travel. According to government statistics, the number of travelers was down approximately 40% versus 2020, and down approximately 70% versus 2019, when compared to the corresponding 40-day Chinese New Year holiday periods. These impacts were more pronounced for KFC, which accounts for most of our stores in these locations. <\/p>\n

The pandemic has also introduced volatility and uncertainty to our operations. The Company acted and reacted nimbly to changing conditions. By planning for a wide range of possible situations, our team worked tirelessly to meet shifting demand across city tiers, trade zones and sales channels. Leveraging our digital capabilities, direct connection with consumers and in-house supply chain, we were able to deftly adjust offers and promotions to changing market conditions. We deployed resources flexibly to help ensure the best possible levels of restaurant staffing and delivery riders, as demand patterns shifted. <\/p>\n

Looking ahead, the Company expects a full recovery of same-store sales to pre-COVID-19 levels to take time, and the unevenness of recovery to linger for several reasons. Public health measures and social distancing behaviors persist as occasional outbreaks, such as those in the first quarter and more recent outbreaks in Yunnan<\/span> province, remind people of the lingering risks.\u00a0Dine-in traffic, as well as sales at our transportation locations, remains well below 2019 levels. Accordingly, the Company will continue to focus on driving the sales recovery while ensuring the safety of our employees and customers.<\/p>\n

\n First <\/b>
\n Quarter Highlights<\/b>\n <\/p>\n