Here's What Key Metrics Tell Us About Yum China (YUMC) Q3 Earnings

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For the quarter ended September 2023, Yum China Holdings (YUMC) reported revenue of $2.91 billion, up 8.5% over the same period last year. EPS came in at $0.59, compared to $0.49 in the year-ago quarter.

The reported revenue represents a surprise of -3.59% over the Zacks Consensus Estimate of $3.02 billion. With the consensus EPS estimate being $0.66, the EPS surprise was -10.61%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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:

  • Same-store sales, excluding F/X - KFC: 4% versus the five-analyst average estimate of 4.4%.

  • Same-store sales, excluding F/X - Pizza Hut: 2% compared to the 4.6% average estimate based on five analysts.

  • No of Restaurants - Pizza Hut: 3,202 versus the four-analyst average estimate of 3,159.

  • No of Restaurants - Others: 983 compared to the 991 average estimate based on four analysts.

  • Revenues- Revenues from transactions with franchisees: $100 million versus $90.82 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +25% change.

  • Revenues- Franchise fees and income: $23 million versus the five-analyst average estimate of $27.35 million. The reported number represents a year-over-year change of +4.6%.

  • Revenues- Company sales: $2.76 billion compared to the $2.87 billion average estimate based on five analysts. The reported number represents a change of +7.7% year over year.

  • Revenues- Other revenues: $32 million versus $20.52 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +45.5% change.

  • Revenues- Pizza Hut: $599 million versus the three-analyst average estimate of $657.30 million. The reported number represents a year-over-year change of +6.8%.

  • Revenues- KFC: $2.19 billion compared to the $2.27 billion average estimate based on three analysts. The reported number represents a change of +8.4% year over year.

  • Revenues- Pizza Hut- Revenues from transactions with franchisees: $1 million versus $1.87 million estimated by two analysts on average.

  • Revenues- Pizza Hut- Franchise fees and income: $2 million versus the two-analyst average estimate of $2.80 million.