{"id":43055,"date":"2023-08-01T10:45:52","date_gmt":"2023-08-01T14:45:52","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/yum-china-earnings-highlight-consumer-rebound\/"},"modified":"2023-08-01T10:45:53","modified_gmt":"2023-08-01T14:45:53","slug":"yum-china-earnings-highlight-consumer-rebound","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=43055","title":{"rendered":"Yum China Earnings Highlight Consumer Rebound"},"content":{"rendered":"
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Key News<\/h3>\n

Asian equities were mixed but mostly higher overnight except for Hong Kong, which underperformed following recent strength.<\/p>\n

Yum China Earnings Overview<\/h3>\n

US-listed Yum China, which operates American fast-food chains such as Taco Bell, Pizza Hut, and KFC in China, reported Q2 earnings after the US close yesterday. The results were outstanding, though revenue was a touch light compared to lofty analyst expectations. The year-over-year (YoY) comparison was an easy one due to Shanghai\u2019s lockdown in Q2 2022, though the results versus Q2 2019 look strong as well. Revenue is +25% higher than in Q2 2022. Meanwhile, the conglomerate\u2019s number of stores has grown to 13,602 from 2019\u2019s 11,023.<\/p>\n

One can become accustomed to crazy numbers when analyzing China, but, would you believe that Yum China has more loyalty program members than the entire population of the United States? At 445 million members, the loyalty program beats the US\u2019 population of 332 million handily.<\/p>\n

Andy Yeung, Yum China\u2019s CFO, commented on the state of consumer during the earnings call, stating \u201cobviously, since we have experienced three years of COVID it was likely going to take some time to regain some of the confidence. And so, that\u2019s what we\u2019re seeing right now.\u201d Then, CEO Joey Wat astutely pointed out that, yes, \u201c\u2026China\u2019s GDP has slowed down to growing probably (only) twice as fast as other developed countries. But that\u2019s not too bad, isn\u2019t it?\u201d I would agree!<\/p>\n

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Click here for a virtual tour of a KFC in China!<\/p>\n

Q2 2023, Year-over-year<\/em><\/p>\n