Yum China: 30% of Stores Closed Amid Coronavirus Outbreak
February 05 2020 - 4:15PM
Dow Jones News
By Micah Maidenberg
Yum China Holdings Inc. (YUMC) warned the spread of the
coronavirus in China will likely hurt its performance this
year.
The company said Wednesday it has temporarily closed more than
30% of its stores. The fast-food chain controls KFC, Taco Bell,
Pizza Hut and other restaurant brands in China.
For stores that remain open, same-store sales since the Lunar
New Year holiday fell as much as 50% compared with the same time
last year in part because of shortened operating hours and reduced
traffic.
Yum China said it isn't able to forecast yet when closed stores
will reopen and when traffic levels will pick back up.
"The coronavirus outbreak is a major public health situation in
China. Our top priority is the health and safety of our employees
and customers," Chief Executive Joe Wat said in a statement.
Yum China said total revenues increased to $2.03 billion in the
fourth quarter, a 6% gain compared with the year earlier and in
line with expectations from analysts polled by FactSet.
Same-store sales rose 2% versus the fourth quarter of 2018.
The company reported a profit of $98 million, or 23 cents a
share, for the quarter, up from $46 million, or 19 cents a share,
the year earlier. Its adjusted profit of 25 cents a share was eight
cents more than the consensus estimate.
This year, Yum China expects to open between 800 and 850 new
stores on a gross basis and predicts between $500 million and $550
million in capital spending.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
February 05, 2020 17:00 ET (22:00 GMT)
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