Yum China rally in Hong Kong after Q1 earnings beat expectations
Yum China rally in Hong Kong after Q1 earnings beat expectations

Yum China rally in Hong Kong after Q1 earnings beat expectations

 

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Yum China reported that its revenue rose 9.3% year over year to $2.917 billion in the first quarter, versus the consensus estimate of $2.77 billion, and net profit reached $289 million, surging 189% from a year earlier. Earnings per share was $0.69, $0.23 better than the analyst estimate of $0.46. The company declared a quarterly dividend of $0.13.

The chief financial officer Andy Yeung said that the group is still at the initial recovery stage and the robust sales during the Chinese New Year holidays were attributable to the release of travel demand, though its same-store sales after the holiday remained more than ten percentage points lower than the levels seen in 2019.

Yeung cautioned that, going forward, the progress and pace the company’s recovery remain uncertain, as inflationary pressure is expected to gradually strengthen in the coming few quarters, the positive factors from temporary subsidies would progressively fade away, there remain challenges in macro environment and the pandemic still poses potential risks.