Yum China (YUMC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks
2024-11-04

For the quarter ended September 2024, Yum China Holdings (YUMC) reported revenue of $3.07 billion, up 5.4% over the same period last year. EPS came in at $0.77, compared to $0.59 in the year-ago quarter.

The reported revenue represents a surprise of -0.31% over the Zacks Consensus Estimate of $3.08 billion. With the consensus EPS estimate being $0.68, the EPS surprise was +13.24%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Yum China performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • No of Restaurants - Total: 15,861 versus the five-analyst average estimate of 15,833.
  • Same-store sales, excluding F/X - KFC: -2% versus -1.8% estimated by five analysts on average.
  • Same-store sales, excluding F/X - Pizza Hut: -6% versus the five-analyst average estimate of -4.5%.
  • Same-store sales, excluding F/X - Total: -3% versus the five-analyst average estimate of -2.3%.
  • Revenues- Revenues from transactions with franchisees: $116 million compared to the $109.49 million average estimate based on five analysts. The reported number represents a change of +16% year over year.
  • Revenues- Franchise fees and income: $25 million versus $28.66 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.7% change.
  • Revenues- Company sales: $2.90 billion versus $2.91 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +4.9% change.
  • Revenues- Other revenues: $35 million versus the five-analyst average estimate of $32.15 million. The reported number represents a year-over-year change of +9.4%.
  • Revenues- Pizza Hut: $615 million versus $622.86 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +2.7% change.
  • Revenues- KFC: $2.31 billion versus $2.33 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.7% change.
  • Revenues- Pizza Hut- Company sales: $606 million versus $619.31 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2.5% change.
  • Revenues- KFC- Franchise fees and income: $19 million versus the three-analyst average estimate of $18.78 million. The reported number represents a year-over-year change of +18.8%.
View all Key Company Metrics for Yum China here>>>

Shares of Yum China have returned -10.6% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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