|Over a week ago|
Yum China upgraded to Outperform from Neutral at Daiwa » 08:0504/2904/29/20
Daiwa analyst Adrian Chan…
Daiwa analyst Adrian Chan upgraded Yum China to Outperform from Neutral.
Yum China enters partnership with Lavazza to launch coffee shop concept in China » 05:4504/2904/29/20
Yum China and the Lavazza…
Yum China and the Lavazza Group announced that they entered into a joint venture, to explore and develop the Lavazza coffee shop concept in China. As the first step, a new Lavazza Flagship Store in Shanghai, their first outside of Italy, opened its doors to customers. To create the food offering for the Flagship Store, Lavazza partnered with a Michelin starred chef to bring the most authentic Italian street food to the local Chinese market. Customers will be able to enjoy a wide offering of savory and sweet Italian snacks, such as focaccia and cannolo alla crema, to name a few, all showcasing different gastronomic specialties from across Italy.
Yum China up 7% to $49.44 after Q1 results beat estimates 17:0304/2804/28/20
Yum China senior executives to voluntarily take pay cuts » 16:3804/2804/28/20
"First and foremost,…
"First and foremost, we wholeheartedly thank all the medical staff and frontline workers who put public health and safety above their own in fighting the COVID-19 outbreak," said Joey Wat, CEO of Yum China. "I am also incredibly proud of how the Yum China team rose to meet the challenges of this outbreak. Our top priority was-and still is-the health and safety of our employees and customers. We did not hesitate to close stores where appropriate, and put in place strict sanitation procedures at all of our stores that remained open. We also proactively expanded our Family Care Program to provide health insurance coverage for all restaurant management team members. In addition, our board members and senior executives have agreed to voluntarily forgo 10% of their base compensation for the balance of 2020 as contributions to fund additional assistance for frontline employees and their families impacted by COVID-19 as well as other emergency relief." Wat continued, "Furthermore, we leveraged our culture of innovation to both protect our stakeholders and support our business. Most importantly, we quickly implemented a safe way to reach our customers through highly sanitary contactless delivery and contactless takeaway. Our digital infrastructure enabled us to stay nimble and communicate quickly with customers and employees online and through mobile technology. We were able to inform our members about compelling offers through our APPs, while efficiently adjusting labor hours based on rapidly changing traffic and sales patterns." Wat concluded, "We were able to sustain operating profitability while extending much needed support to our employees, business partners and franchisees. This achievement under extraordinary circumstances is a testament to our resilient and flexible business model. Weathering this storm of all storms gives us great confidence in our ability to thrive in the years ahead by serving our employees, customers, and shareholders."
Yum China CFO says situation in China 'gradually stabilizing' » 16:3704/2804/28/20
Andy Yeung, CFO of Yum…
Andy Yeung, CFO of Yum China, added, "After a strong start to the year, the outbreak significantly impacted our business starting in late January. System sales declined 20% due to the temporary store closures combined with the 15% decline in same-store sales. Solid execution and aggressive cost controls allowed us to partially mitigate sales deleverage. Together with one-time relief from landlords and government agencies, we were able to generate an operating profit for the quarter." Yeung continued, "The situation in China is gradually stabilizing, but we remain cautious as our restaurant traffic is still below pre-outbreak levels. We expect an extended recovery period, and that the pace will be uneven across regions, dayparts and segments. We will continue to implement aggressive measures to control our costs. On the other hand, global infections continue to rise. It remains difficult to predict the full impact of the pandemic on the broader economy and how consumer behavior may change. So, despite having a strong balance sheet, we will temporarily suspend our share repurchases and, for the next two quarters, dividends. We have taken these actions out of an abundance of caution as we navigate through these challenging times. We believe the strength of our balance sheet and capital structure will offer us flexibility to respond to contingencies, if needed, and to continue investments in long-term value-creating opportunities, where appropriate."
Yum China: COVID-19 likely to have 'material and extended adverse impact' » 16:3604/2804/28/20
Yum China said, "The…
Yum China said, "The company provides the following fiscal year 2020 targets, subject to revision based on future impacts of COVID-19 that cannot be predicted at this time: To open between 800 and 850 new stores (gross), excluding Huang Ji Huang. To make capital expenditures between $500 million and $550 million. The company believes that the COVID-19 outbreak is likely to have a material and extended adverse impact on its operational and financial results for full year 2020. Future operations, as well as the company's cash flows and financial position, may be materially and adversely influenced by further developments related to this global outbreak, including potential additional announcements and actions from governments and local authorities, disruption in our supply chain, our inability to provide safety measures to protect our employees, or other reasons."
Yum China to temporarily suspend share repurchases, cash dividends » 16:3404/2804/28/20
Due to the unprecedented…
Due to the unprecedented effects of the COVID-19 pandemic and associated economic uncertainty, the company announced that it will temporarily suspend its share repurchases and, for the next two quarters, cash dividends on the company's common stock. The company had $1.54B in cash and short-term investments and no material debt at the end of the first quarter.
Yum China opened 179 new stores during Q1 » 16:3304/2804/28/20
Opened 179 new stores…
Opened 179 new stores during the quarter, bringing total store count to 9,295 across more than 1,400 cities.
Yum China reports Q1 restaurant margin was 10.7% vs. 18.5% a year ago 16:3204/2804/28/20
Yum China reports Q1 SSS down 15% » 16:3104/2804/28/20
Q1 same-store sales…
Q1 same-store sales declined 15% year over year, with an 11% decline at KFC and 31% decline at Pizza Hut, excluding F/X.