Yum China earnings top estimates

Business Wednesday 08/February/2017 14:18 PM
By: Times News Service
Yum China earnings top estimates

New York: Yum China Holdings, the Asian fast-food company that was spun off from its US parent in October, topped earnings estimates in its inaugural quarterly results, helped by the growth of its KFC chain.
The company posted profit of 17 cents a share, excluding some items, compared with an average estimate of 10 cents. Same-store sales growth at KFC helped bolster results, while its Pizza Hut division performed worse than expected.
The results suggest that Yum China had a respectable start as an independent company, even as it faces headwinds. In addition to sluggish sales at Pizza Hut, foreign currency fluctuations weighed on the company. And the escalation of tensions between the US and China under the Trump administration may cast a shadow over the business.
"Right now, our top priority is consistently delivering positive same-store sales growth,” Chief Executive Officer Micky Pant said in a statement.
KFC’s same-store sales grew 1 per cent in the fourth quarter. Analysts had estimated a 0.4 per cent gain, according to Consensus Metrix. Pizza Hut declined 3 per cent, missing the 2.3 per cent growth projection. Combined, the company’s sales were flat in the period.
Yum China also approved a $300 million buyback programme and appointed two key executives. Joey Wat will serve as chief operating officer, while Johnson Huang will become general manager of the KFC business.