Yum China 3Q Profit Nearly Doubled Following Acquisition
29 October 2020 - 12:19PM
Dow Jones News
Yum China Holdings Inc.'s third-quarter net profit nearly
doubled as business activity improved in China and the company
booked a noncash gain following an acquisition.
Profit was about $439 million, up from about $223 million in the
same period a year earlier, Shanghai-based Yum China said in a Hong
Kong stock-exchange filing Thursday. The company booked a $239
million gain after it acquired a KFC operator and revalued its
prior equity stake in the company.
The operator of thousands of KFC, Pizza Hut, Taco Bell and other
restaurants in China said total revenues rose 1.3% to $2.35
billion. It said operations were affected by lingering effects of
the Covid-19 pandemic, including reduced tourism and a delayed and
shortened school holiday, adding that same-store sales declined
6%.
Yum China said it plans to increase staffing levels in the
coming months and resume a quarterly cash dividend in the fourth
quarter. It expected the pandemic to continue to have a material
adverse impact on operational and financial results in 2020.
"We remain cautiously optimistic and continue to expect the
recovery to be non-linear and uneven," said Andy Yeung, the
company's chief financial officer. "Although the Covid-19 outbreak
in China has improved over the past months, we are not out of the
woods yet."
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(END) Dow Jones Newswires
October 28, 2020 21:04 ET (01:04 GMT)
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