YUM CHINA Announces Fiscal Year 2023 Second Quarter Earnings Results on June 30th, 2023

🌥️Earnings Overview

YUM CHINA ($NYSE:YUMC) announced their fiscal year 2023 second quarter earnings results on June 30th 2023, showing total revenue of USD 2654.0 million, a 24.7% increase from the same period in the previous year. Additionally, the reported net income was USD 197.0 million, representing a 137.3% increase compared to the same quarter in the previous year.

Price History

The stock opened at $60.7 and closed at $61.0, up by 2.1% from last closing price of 59.8. This marks a significant increase in the company’s financial performance compared to the same quarter of the previous year. YUM CHINA attributed this increase to the success of their new digital platform, which allows customers to order online and have meals delivered to their doorsteps. YUM CHINA’s shareholders welcomed the news as their shares continued to climb after the earnings announcement. Investors are optimistic that the company will continue its momentum into the next fiscal year and beyond. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Yum China. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Yum China. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Yum China. More…

Key Ratios Snapshot

Some of the financial key ratios for Yum China are shown below. More…

Analysis

At GoodWhale, we conducted an in depth analysis of YUM CHINA‘s fundamentals. According to our Star Chart ratings, YUM CHINA is classified as a ‘rhino’, meaning the company has achieved moderate revenue or earnings growth. This could be attractive to value investors looking for strong dividend payments, medium asset growth, medium profitability, and good health score of 10/10 considering its cashflows and debt. YUM CHINA is also capable to sustain future operations in times of crisis, making it an attractive option for investors looking for a stable company for long term investments. More…

Peers

The restaurant industry is highly competitive, with Yum China Holdings Inc facing off against Xiabuxiabu Catering Management (China) Hldgs Co Ltd, Yum Brands Inc, and Longhui International Holdings Ltd. All four companies are vying for a share of the Chinese market, which is expected to grow to $1.6 trillion by 2020. While Yum China has the advantage of being the first mover in the Chinese market, it will need to continue to innovate and evolve its offerings to stay ahead of its competitors.

– Xiabuxiabu Catering Management (China) Hldgs Co Ltd ($SEHK:00520)

Xiabuxiabu Catering Management (China) Hldgs Co Ltd is a leading Chinese catering company. It has a market cap of 5.06B and a ROE of -13.09%. The company operates a chain of restaurants across China, providing catering services for both individual customers and corporate clients. It also has a strong presence in the online food delivery market, with its own delivery platform and app.

– Yum Brands Inc ($NYSE:YUM)

Yum Brands Inc, a food and beverage company, has a market capitalization of $31.2 billion as of 2022. The company has a return on equity of -15.87%. Yum Brands operates in the quick service restaurant industry. The company franchises and operates restaurants under the KFC, Pizza Hut, and Taco Bell brands. Yum Brands was founded in 1997 and is headquartered in Louisville, Kentucky.

– Longhui International Holdings Ltd ($SEHK:01007)

Longhui International Holdings Ltd is a holding company that, through its subsidiaries, engages in the property development, investment, and management businesses in Mainland China. As of 2022, its market cap was $85.36 million and its ROE was 13.26%. The company is based in Shenzhen, China.

Summary

YUM CHINA‘s second quarter earnings results for fiscal year 2023 indicate strong growth in both revenue and net income. Total revenue increased by 24.7% to USD 2654.0 million, while net income increased by 137.3% to USD 197.0 million, compared to the same period last year. This suggests that YUM CHINA is well positioned to continue its growth and may be a good investment opportunity. As such, YUM CHINA appears to be a sound investment option with a bright future ahead.