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EX - 99.1 2 yumc - ex991_6.htm EX - 99.1 6₁ AS YumChina Yum China Reports First Quarter 2021 Results Total Revenues grew 46 % . System Sales grew 34 % and Same - Store Sales were up 10 % in constant currency Opened 315 new stores and reported $ 342 million Operating Profit Shanghai , China ( April 27 , 2021 ) – Yum China Holdings , Inc. ( the " Company " or " Yum China " ) ( NYSE : YUMC and HKEX : 9987 ) today reported unaudited results for the first quarter ended March 31 , 2021 . Impact of COVID - 19 Outbreak and Mitigation Efforts Yum China reported substantial year - over - year growth in the first quarter , as the Company began to lap prior year periods that were impacted by COVID - 19 . System sales growth was mainly attributable to same - store sales growth , new unit contribution and substantially fewer temporary store closures . Operating Profit growth was further driven by lower commodity prices and productivity gains . Exhibit 99.1 First quarter sales were impacted by regional resurgences of COVID - 19 before the Chinese New Year and tightened public health measures across China . The tightened measures and associated consumer caution resulted in smaller gatherings and a noticeably reduced volume of travel . Our transportation and tourist locations , representing high single digits of our store mix , were significantly affected by the decline in travel . According to government statistics , the number of travelers was down approximately 40 % versus 2020 , and down approximately 70 % versus 2019 , when compared to the corresponding 40 - day Chinese New Year holiday periods . These impacts were more pronounced for KFC , which accounts for most of our stores in these locations . The pandemic has also introduced volatility and uncertainty to our operations . The Company acted and reacted nimbly to changing conditions . By planning for a wide range of possible situations , our team worked tirelessly to meet shifting demand across city tiers , trade zones and sales channels . Leveraging our digital capabilities , direct connection with consumers and in - house supply chain , we were able to deftly adjust offers and promotions to changing market conditions . We deployed resources flexibly to help ensure the best possible levels of restaurant staffing and delivery riders , as demand patterns shifted . Looking ahead , the Company expects a full recovery of same - store sales to pre - COVID - 19 levels to take time , and the unevenness of recovery to linger for several reasons . Public health measures and social distancing behaviors persist as occasional outbreaks , such as those in the first quarter and more recent outbreaks in Yunnan province , remind people of the lingering risks . Dine - in traffic , as well as sales at our transportation locations , remains well below 2019 levels . Accordingly , the Company will continue to focus on driving the sales recovery while ensuring the safety of our employees and customers . ● First Quarter Highlights Total revenues increased 46 % year over year to $ 2.56 billion from $ 1.75 billion ( a 36 % increase excluding foreign currency translation ( " F / X " ) ) . Total system sales increased 34 % year over year , with increases of 24 % at KFC and 57 % at Pizza Hut , excluding F / X . ● Same - store sales increased 10 % year over year , with increases of 5 % at KFC and 38 % at Pizza Hut , excluding F / X . Opened 315 new stores during the quarter ; total store count reached 10,725 as of March 31 , 2021 . ● Restaurant margin was 18.7 % , compared with 10.7 % in the prior year period . Operating Profit increased 250 % year over year to $ 342 million from $ 97 million ( a 227 % increase excluding F / X ) . Adjusted Operating Profit increased 249 % year over year to $ 345 million from $ 98 million ( a 227 % increase excluding F / X ) . Effective tax rate was 29.6 % . ● Net Income increased 272 % to $ 230 million from $ 62 million in the prior year period , primarily due to the increase in Operating Profit . Adjusted Net Income increased 271 % to $ 233 million from $ 63 million in the prior year period ( a 249 % increase excluding the mark - to - market losses of $ 16 million and $ 8 million in the first quarter of 2021 and 2020 , respectively , from our equity investments ; a 225 % increase if further excluding F / X ) . Yum China Holdings , Inc. • Shanghai , China • Website http://ir.yumchina.com