{"id":519381,"date":"2021-07-28T16:33:52","date_gmt":"2021-07-28T20:33:52","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/yum-china-reports-second-quarter-2021-results\/"},"modified":"2021-07-28T16:33:52","modified_gmt":"2021-07-28T20:33:52","slug":"yum-china-reports-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/yum-china-reports-second-quarter-2021-results\/","title":{"rendered":"Yum China Reports Second Quarter 2021 Results"},"content":{"rendered":"
\n

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

\n

\n
\n Total Revenues grew <\/i>
\n 29<\/i>
\n %. System Sales grew <\/i>
\n 14<\/i>
\n % and Same-Store Sales were up <\/i>
\n 5<\/i>
\n <\/span>
\n
\n % in constant currency\u00a0
<\/i>
\n Opened <\/i>
\n 404<\/i>
\n \u00a0new stores<\/i>
\n ; Total stores reached 11,023,<\/i>
\n \u00a0<\/i>
\n an<\/i>
\n \u00a0increase of <\/i>
\n 1,069<\/i>
\n \u00a0stores year over year\u00a0<\/i>
\n
\n Reported $<\/i>
\n 233<\/i>
\n \u00a0million Operating Profit<\/i>
\n <\/span>\n <\/p>\n

\n SHANGHAI<\/span>, July 28, 2021<\/span> \/PRNewswire\/ — Yum China Holdings, Inc. (the “Company” or “Yum China<\/span>“) (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the second\u00a0quarter ended June 30, 2021<\/span>.<\/p>\n

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

Second quarter operations improved from a year ago. System sales and operating profit grew year over year. System sales growth was led by accelerated new store openings and same-store sales growth. Operating profit growth was further driven by lower commodity prices, and productivity improvements. <\/p>\n

The COVID-19 pandemic continued to impact the Company’s operations and results in the second quarter. Same-store sales recovery to pre-COVID levels was interrupted by the Delta variant outbreak in southern China, which started in late May. Local authorities tightened preventive health measures and social distancing requirements. Many communities were locked down. At the peak of this outbreak, approximately 400 of our restaurants were either temporarily closed or provided delivery and takeaway services only. This represents nearly 30% of our restaurants in Guangdong<\/span> province, which has two of the four tier one cities in China<\/span>, is the largest economy in China<\/span> and one of Yum China’s<\/span> largest markets. Across China, cautious consumer behavior persists as sporadic outbreaks remind consumers of the lingering risks. Same-store dine-in volume is still well below 2019 levels while off-premise occasions continue to grow rapidly. Overall, the pace of recovery varied by region with eastern and western China recovering relatively faster. <\/p>\n

Traffic at our transportation and tourist locations improved from the first quarter but remained well below pre-COVID levels. According to government statistics, tourism spending for the three holidays in the second quarter was still down 20% to 40% compared to 2019. The impact was more pronounced for KFC, with its higher mix of stores in transportation and tourist locations. <\/p>\n

As we entered July, traffic and sales continue to be pressured by lingering effects of COVID-19, such as reduced travel, a shortened school holiday and regional outbreaks in Yunnan<\/span>. The latest outbreak in Nanjing<\/span>, the capital city of Jiangsu<\/span> province, is still evolving. The Company continues to expect that a full recovery of same-store sales will take time, with the recovery path impacted by regional resurgences and the corresponding public health measures. We will continue to focus on the elements of the business under our control, such as food innovation, compelling value propositions, a focus on customer experience, and operating efficiency, to drive sales and protect margins. <\/p>\n

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