Yum China Tops Expectations in First Earnings
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Yum China Holdings, the Chinese fast food company that was spun off from its U.S. parent in October, topped earnings estimates in its inaugural quarterly results with the help of its growing KFC chain.
The company posted profit of 17 cents a share, excluding some items, compared with an average estimate of 10 cents. Same-store sales growth at KFC helped bolster results, while its Pizza Hut division performed worse than expected.
The results show Yum China had a respectable start as an independent company, even as it faces headwinds. Its pizza chain continues to decline as local competitors gain market share. The company added 575 outlets last year, with more than half that in the fourth quarter as it banks on aggressive expansion to keep it ahead of other U.S. chains in China.
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