Yum China Posts 5% Revenue Growth, Announces Dividend
The operator of KFC, Pizza Hut and Taco Bell in China reported weaker-than-expected revenue but strong profit for the third quarter.
Shares in Yum China Holdings Inc. (NYSE: YUMC) were trading down nearly 2% on Wednesday afternoon, at $43.45 apiece, following the release of its financial results for the third quarter.
The operator of KFC, Pizza Hut and Taco Bell in China said in a report after markets closed on Tuesday that its revenue in the third quarter reached $2.3 billion, up 5% from a year ago but still worse than analysts expected. Yum China said that revenue growth would be 8% if excluding the change of yuan-to-dollar ratio.
Net income, it reported, grew 11% to $223 million, or 58 cents per American depositary share, compared with $203 million, or 51 cents per ADS, in the same period last year.
The company has accelerated its expansion in China, opening 231 new restaurants during the three months through September.
"We will continue to build on KFC's resilient business model, cement the revitalization of Pizza Hut, invest in the growth of our smaller brands and sharpen our industry-leading digital ecosystem, which enables us to meet customer demands and manage the business effectively," Joey Wat, the chief executive officer of Yum China, said in the statement.
The company also announced it will distribute a dividend of 12 cents on Dec. 17 to shareholders of record as of Nov. 26.
"We returned $109 million to shareholders through dividends and share repurchases in the quarter," Andy Yeung, the chief financial officer of Yum China, said.
Yeung assumed the role of CFO on October 16 after the resignation of Jacky Lo. Previously, Yeung served as CFO at Smart Finance International Ltd. and Cheetah Mobile Inc. (NYSE: CMCM).