YUMC Earnings Prediction
The chart below shows how YUMC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, YUMC sees a -1.32% change in stock price 10 days leading up to the earnings, and a +1.56% change 10 days following the report. On the earnings day itself, the stock moves by +3.03%. This data can give you a slight idea of what to expect for the next quarter's release.
YUMC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.60B
4.09%
-15.50%
Gross Margin
39.61%
2.75%
-6.71%
Operating Margin
7.24%
28.83%
-42.86%
Net Margin
4.86%
13.29%
-53.22%
EPS
0.30
30.43%
-61.04%
No Data Available
YUMC Earnings Analysis
Yum China Holdings Inc Corporation (YUMC.N) Earnings Conference Call
Positive
Sales Performance Improvement: System sales grew 4% year over year, outperforming the industry, with same-store sales index improving to 99% of prior year levels.
Operating Profit and EPS Growth: Core operating profit grew 35% year over year, reaching $151 million in quarter four, while diluted EPS increased 27% year over year to $0.30.
Store Expansion and Sales Growth: KFC opened a record 1,352 net new stores in 2024, bringing the total store count to 11,648, with system sales increasing by 6%.
Record Operating Profit Growth: Pizza Hut achieved the highest level of operating profit since the spin-off, with same-store transactions growing 5% and restaurant margin expanding by 60 basis points.
Shareholder Return Strategy: Yum China is on track to return $4.5 billion to shareholders from 2024 through 2026, including a 50% increase in quarterly dividends to $0.24 per share.
Negative
Earnings Performance Shortfall: Yum China Holdings, Inc. reported diluted EPS of $0.30, missing expectations of $0.31, indicating a shortfall in earnings performance.
Same-Store Sales Decline: The same-store sales index for Pizza Hut reached only 98% of prior year levels, reflecting a decline in customer spending compared to previous periods.
Ticket Average Decline: The ticket average for Pizza Hut was 10% lower year over year, suggesting a shift towards lower-priced items and potentially reduced customer spending power.
Sales Growth Stagnation: Despite a 4% year-over-year growth in system sales, the overall same-store sales index only improved to 99% of prior year levels, indicating stagnation in customer traffic.
Investment Impact Analysis: The mark-to-market equity investment had a negative impact of $9 million in quarter four, although this was an improvement from the previous year's negative impact of $14 million, highlighting ongoing volatility in investment returns.
YUMC FAQs
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YUMC Earning Call Sentiment
Yum China Holdings, Inc. (NYSE:YUMC) Q4 2024 Earnings Call Transcript
YUMC.N
-1.57%Positive
Despite missing EPS expectations, Yum China reported strong financial performance with significant growth in core operating profit and net income. The 50% increase in dividends and substantial share repurchase plan will likely boost investor sentiment. While there are competitive and regulatory challenges, the company's focus on operational efficiency and expansion supports a positive outlook. The Q&A section indicated strategic clarity and confidence in growth, further reinforcing positive sentiment. Overall, the stock price is expected to rise by 2% to 8% over the next two weeks.
