Earnings reported after the bell Wednesday showed how the
coronavirus pandemic has upended the food industry.
Yum China Holdings Inc., which runs more than 9,000 KFCs, Pizza
Huts and other restaurants in China, reported lower results for the
June quarter. Company officials said that most of Yum's locations
in China have reopened, but warned that the pace of the recovery
was uneven, with Eastern China rebounding faster. Northern China
was notably slower, the company said, adding that transportation
and tourist locations continue to experience significant
year-over-year traffic declines.
Chicken-producer Pilgrim's Pride Corp. swung to a second-quarter
loss, with company officials saying they had seen lower demand in
the U.S. and Mexico for parts and whole-birds, which are typically
bound for restaurants, and prepared food that is usually
distributed to schools. They said European business experienced
less of an impact because it is more retail focused.
Cheesecake Factory managed to lose less than expected in its
second-quarter earnings, even as the coronavirus pandemic continued
to hammer sales. The company said same-store sales slumped 58% for
the quarter.
Earlier in the day, companies providing do-it-yourself products
benefited as the Covid-19 pandemic has kept millions of people in
their homes.
Blue Apron Holdings Inc., which ships meal ingredients to
customers, said it turned a profit for the second quarter as demand
for meal kits rose amid shelter-in-place measures. The results mark
the company's first quarterly profit since it went public in 2017,
according to FactSet.
Scotts Miracle-Gro Co. said its profit and sales for the fiscal
third quarter rose as it saw higher demand for lawn and garden
products amid the pandemic, leading it to raise its full-year
guidance.
Also Wednesday, some of Europe's biggest lenders revealed the
extent of the pandemic's impact on their businesses. Germany's
Deutsche Bank AG, the U.K.'s Barclays PLC and Spain's Banco
Santander SA reported higher loan-loss charges in the second
quarter as their customers struggle to repay debts and unemployment
rises across the regions in which the banks operate.
Earnings reported after the bell, at a glance:
Cognizant Technology Solutions Inc.: The professional-services
firm expects slightly lower revenue in fiscal 2020 as it takes into
account the effects of its exit of certain content-services
businesses and the Covid-19 pandemic.
Equinix Inc.: The data-center landlord said revenue rose to
$1.47 billion from $1.38 billion a year earlier. Analysts expected
$1.46 billion. Chief Executive Charles Meyers said in a statement:
"The Equinix business continues to perform well and show resiliency
through these times of uncertainty, enabling us to remain focused
on the clear set of priorities we laid out at the beginning of the
year-investing in our people, evolving our platform and service
portfolio to meet the changing needs of customers, expanding our
go-to-market engine to fuel long-term growth, and simplifying our
business to drive operating leverage and enhance our customer
experience."
Lam Research Corp.: The chip maker posted a higher
second-quarter profit and stronger sales even as the Covid-19
pandemic hampered economies around the world during the period.
PayPal Holdings Inc.: The digital payments company reported
strong financial results in the second quarter and reinstated
financial projections for the year, fueled by the increase in
digital payments amid the coronavirus pandemic.
Qualcomm Inc.: The wireless chip maker reported a drop in
June-quarter results on lower handset shipments amid the
coronavirus pandemic but fourth-quarter guidance reflects a
long-term patent license agreement with Huawei Technologies Co.
Sprouts Farmers Markets Inc.: The company said the coronavirus
pandemic drove a 9.1% increase in in-store sales in the second
quarter.
Other earnings reported Wednesday:
ANA Holdings Inc.: The Japanese airline swung to a net loss in
its first quarter as the pandemic battered demand for travel.
Anthem Inc.: The U.S. health insurer said its profit and revenue
for the second quarter climbed as it saw a deferral in elective
health care due to the pandemic.
Aston Martin Lagonda Global Holdings PLC: The British luxury car
maker reported a wider pretax loss for the first half of the year
as coronavirus lockdowns forced dealers and factories to close.
Axalta Coating Systems Ltd.: The coatings and paint company said
it is cutting jobs as the economic fallout from Covid-19 eats into
customer demand and puts heightened pressure on its sales and
profit.
Boeing Co.: The U.S. aerospace company said it would cut
production of commercial jets and shrink its workforce further as
the pandemic deepens its toll on the global aviation industry.
Boeing lost $2.4 billion in the second quarter, reflecting the
impact of the pandemic as well as the prolonged grounding of the
737 MAX aircraft following two fatal crashes.
Breedon Group PLC: The U.K. construction-materials company swung
to a pretax loss in the first six months of the year as the
coronavirus lockdown prompted an immediate fall in demand but added
its market was improving.
CDL Hospitality Trusts: The Singapore-based trust said its
first-half net property income fell 56% from a year earlier as
pandemic restrictions on travel cut into hotel occupancy.
Dairy Farm International Holdings Ltd.: The pan-Asian retailer
posted a lower profit for the first half of the year, citing the
pandemic, and cut its dividend for the period.
Dignity PLC: The U.K. funeral services company swung to a pretax
loss in the first half of 2020 despite a rise in deaths due to the
coronavirus, as higher volumes were offset by lower average
incomes.
Dine Brands Global Inc.: The Applebee's and IHOP restaurant
owner swung to a second-quarter loss as sales remain significantly
below last year's despite a recovery trajectory from when the
pandemic caused widespread shutdowns earlier this year.
Dr. Reddy's Laboratories Ltd.: The Indian drugmaker's
first-quarter net profit fell 13% from a year earlier as Covid-19
restrictions drove sales volumes lower.
Dynatrace Inc.: The software-intelligence provider swung to a
profit in the fiscal first quarter of 2021 as it rode the
cloud-adoption wave spurred by the pandemic that helped drive sales
27% higher.
Eaton Corp.: The Dublin-based power-management company recorded
falling sales in the second quarter as the pandemic disrupted
demand, but its revenue and adjusted profit were higher than
analysts had forecast.
Garmin Ltd.: The Switzerland-based company reported lower profit
and sales for the second quarter as the maker of navigation systems
for cars, boats and planes said it is starting to rebound from
April lows.
General Dynamics Corp.: The company, which makes Gulfstream
business jets and combat systems, recorded second-quarter revenue
and earnings results that ticked above analysts' expectations, as
its aircraft deliveries edged higher despite continued challenges
from the pandemic.
General Electric Co.: The company posted a roughly $2 billion
quarterly loss as revenue tumbled 24%, hurt by a steep decline in a
jet-engine business that has been hobbled by the pandemic.
General Motors Co.: The company posted a $758 million
second-quarter net loss mostly due to factory shutdowns in its home
U.S. market, although resilient sales of pricey pickup trucks
propelled results beyond analysts' forecasts.
Heathrow Airport: The London airport, which is jointly owned by
the Qatar Investment Authority, China Investment Corporation,
Spain's Ferrovial SA and other investment companies, swung into a
pretax loss for the first half of 2020 due to the pandemic. The
company expects passenger numbers in 2020 to fall by at least 60%
compared with last year despite a gradual recovery as countries
open borders.
InterGlobe Aviation Ltd.: The operator of Indian budget airline
IndiGo said it swung to a net loss in the first quarter, as the
pandemic severely restricted its operations.
Jupiter Fund Management PLC: The money manager reported a fall
in pretax profit for the first half of 2020 due to a reduction in
net management fees, as the pandemic drove down assets under
management.
Kao Corp.: The Japanese maker of soap and other consumer goods
said its first-half net profit fell 12%, as the pandemic hit its
cosmetics business hard.
Lancashire Holdings Ltd.: The Bermuda-based, London-listed
insurance company reported a pretax loss for the first six months
of 2020 despite a rise in both net and gross premiums as the
coronavirus dragged its results.
Maruti Suzuki India Ltd.: The Indian auto maker swung to a net
loss in its first quarter, as the pandemic hurt its operations and
sales.
Novatek: The Russian energy company said pretax profit for the
second quarter of the year plummeted as the pandemic hit demand and
the oversupply of crude oil drove down oil prices.
Prada SpA: The Italian luxury-fashion company turned a
first-half loss as its activities were hit by the pandemic, but it
hopes for a return to profitability in the last six months of the
year.
Puma SE: The German sporting-goods company swung to a loss in
the second quarter and said it still couldn't provide guidance for
the year due to the pandemic.
Saia Inc.: The U.S. trucking provider reported weaker
second-quarter revenue and earnings, reflecting how the pandemic
created disruptions for its business and customers.
Singapore Airlines Ltd.: The Singaporean airline swung to a net
loss in the first quarter, as demand for its services evaporated
due to travel restrictions and border controls imposed
world-wide.
Six Flags Entertainment Corp.: The amusement-park operator
reported a second-quarter net loss that was wider than the first
quarter's, as its parks spent most of that period closed because of
the pandemic.
SK Innovation Co.: The South Korean oil refiner swung to a net
loss in the second quarter due to weaker refining margins and lower
oil prices amid sluggish demand caused by the pandemic.
Smith & Nephew PLC: The U.K. medical-technology company
turned a pretax loss for the first half of the year and said
trading profit missed consensus expectations as the pandemic hurt
its margin.
Solvay SA: The Belgian chemical company reported a fall in
second-quarter net profit as the pandemic hurt demand in several
sectors. Solvay expects a challenging third quarter before trading
starts to improve in the fourth quarter.
Sumitomo Mitsui Financial Group Inc.: The Japanese financial
company said its first-quarter net profit fell 60% from a year
earlier due partly to greater provisions for possible loan losses
amid the pandemic.
Wizz Air Holdings PLC: The U.K. airline reported a pretax loss
for the first quarter of fiscal 2021 due to the pandemic.
Write to Rose Manzo at Rose.Manzo@wsj.com and Shayna Sebold at
Shayna.Sebold@wsj.com
(END) Dow Jones Newswires
July 29, 2020 18:24 ET (22:24 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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