Several waves of outbreaks of the Delta variant persisted throughout the fourth quarter of 2021 in mainland China, hurting Yum China’s business, the company said today in its latest earnings report.
Originally from Yum! and operating as an independent company since 2016, Yum China is China’s largest restaurant chain with more than 11,000 places to eat across the country as of December.
Yum China’s inventories traded in Hong Kong fell 4. 3% at midday to HK$342. 60, and were on track to achieve their lowest close from a secondary board there in September 2020 to HK$412 in line with the stake. The inventory is also listed on the New York Stock Exchange.
Revenue from restaurant operator KFC and Pizza Hut increased 1% in the 3 months to December 31 compared to last year to $2. 29 billion; higher net source of income, but basically due to the non-cash gain of $618 million from the revaluation of a stake in the past. (See the announcement here. )
“Widespread outbreaks have led to stricter national public fitness measures in order to achieve zero cases of covid-19,” Yum China said. “These preventive measures, including mass testing, regional closures and travel restrictions, have had a negative effect. an effect on the place-to-eat industry and our business” and have led to “reduced travel, less social activity and lower customer demand. “
As COVID-19 outbreaks resurfaced, same-store sales declined year-over-year in November, Yum China said. While sales trends recovered slightly, same-store sales fell more than 10% year-over-year in December. He noticed it.
Looking ahead, Yum China warned, “the scenario remains unstable. “In January, cases of the Omicron variant gave the impression in China and spread to major cities such as Beijing, Shanghai, Tianjin and Shenzhen. A shutdown in Xi’an, which began in December, lasted at most in January, the company said. At the January peak, more than 500 retail outlets temporarily closed or only provided takeout and delivery services, up from three hundred retail outlets in the fourth quarter.
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