YUM China Reaches 10,000th Store Milestone With KFC Opening
December 21, 2023
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YUM ($NYSE:YUMC) China recently celebrated a major milestone with the opening of its 10,000th store in China. YUM China is a leading restaurant company specializing in the development, operation and franchising of quick service restaurants in the People’s Republic of China. The company operates three well-known brands: KFC, Pizza Hut and East Dawning. It also owns a fourth brand, Little Sheep, which specializes in hot pot cuisine. YUM China has grown dramatically over the past few years, thanks to its strategy of investing significant resources into digital technology and development.
This has enabled the company to expand its customer base, increase its sales, and enhance its efficiency in food delivery and other restaurant operations. The new KFC store is located in Hangzhou, and boasts an array of features that are designed to enhance the customer’s dining experience, including digital ordering kiosks and an interactive order-tracking system. As YUM China continues to grow, its goal is to continue providing customers with the highest quality food and service while also expanding its presence in China.
Market Price
This event saw YUM CHINA‘s stock open at $40.6 and close at $41.3, up by 3.1% from its previous closing price of 40.1. This marks a significant achievement for YUM CHINA, which has experienced rapid expansion over the past decade. YUM CHINA now boasts more than 10,000 stores across China, with KFC being the most prominent among them.
The company plans to continue this growth trajectory in the years to come, with more stores expected to open in the coming months. YUM CHINA is proving itself to be a major player in the Chinese market and is likely to continue its success for many years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Yum China. More…
| Total Revenues | Net Income | Net Margin |
| 10.57k | 783 | 7.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Yum China. More…
| Operations | Investing | Financing |
| 1.42k | -981 | -501 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Yum China. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.07k | 4.81k | 15.85 |
Key Ratios Snapshot
Some of the financial key ratios for Yum China are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.6% | 18.9% | 10.1% |
| FCF Margin | ROE | ROA |
| 7.1% | 10.1% | 5.5% |
Analysis
GoodWhale has conducted an analysis of YUM CHINA‘s financials. According to Star Chart, YUM CHINA is classified as ‘cheetah’ which indicates that the company has achieved high growth in terms of revenue or earnings but is considered to be less stable due to lower profitability. This type of company may be attractive to investors who are interested in taking on higher levels of risk in exchange for potential higher returns. YUM CHINA has an overall health score of 10 out of 10 when considering its cashflows and debt, indicating that it is capable of using its available resources to pay off debt and fund future operations. GoodWhale also found that YUM CHINA is strong in dividend, and medium in asset, growth, and profitability. 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 (NYSE: YUMC), the parent company of KFC and other popular restaurant brands in China, recently hit a major milestone with the opening of its 10,000th store in China. The opening of this store appears to have further increased investor confidence in the company, as its stock price moved up on the same day. Yum China has been steadily expanding its presence in the Chinese market over the past few years, and the 10,000th store marks a significant milestone for the company.
With strong revenue growth and a focus on innovation, Yum China remains a solid investment opportunity for investors looking to gain exposure to the Chinese market. Its strong market position, solid financial performance, and continued expansion efforts all bode well for the company’s future performance.
