Page 1

EX - 99.1 2 yumc - ex991_6.htm EX - 99.1 6₁ AS YumChina Yum China Reports Second Quarter 2021 Results Total Revenues grew 29 % . System Sales grew 14 % and Same - Store Sales were up 5 % in constant currency Opened 404 new stores ; Total stores reached 11,023 , an increase of 1,069 stores year over year Reported $ 233 million Operating Profit Shanghai , China ( July 28 , 2021 ) – Yum China Holdings , Inc. ( the " Company " or " Yum China " ) ( NYSE : YUMC and HKEX : 9987 ) today reported unaudited results for the second quarter ended June 30 , 2021 . Impact of COVID - 19 Outbreak and Mitigation Efforts Second quarter operations improved from a year ago . System sales and operating profit grew year over year . System sales growth was led by accelerated new store openings and same - store sales growth . Operating profit growth was further driven by lower commodity prices , and productivity improvements . Exhibit 99.1 The COVID - 19 pandemic continued to impact the Company's operations and results in the second quarter . Same - store sales recovery to pre - COVID levels was interrupted by the Delta variant outbreak in southern China , which started in late May . Local authorities tightened preventive health measures and social distancing requirements . Many communities were locked down . At the peak of this outbreak , approximately 400 of our restaurants were either temporarily closed or provided delivery and takeaway services only . This represents nearly 30 % of our restaurants in Guangdong province , which has two of the four tier one cities in China , is the largest economy in China and one of Yum China's largest markets . Across China , cautious consumer behavior persists as sporadic outbreaks remind consumers of the lingering risks . Same - store dine - in volume is still well below 2019 levels while off - premise occasions continue to grow rapidly . Overall , the pace of recovery varied by region with eastern and western China recovering relatively faster . Traffic at our transportation and tourist locations improved from the first quarter but remained well below pre - COVID levels . According to government statistics , tourism spending for the three holidays in the second quarter was still down 20 % to 40 % compared to 2019. The impact was more pronounced for KFC , with its higher mix of stores in transportation and tourist locations . As we entered July , traffic and sales continue to be pressured by lingering effects of COVID - 19 , such as reduced travel , a shortened school holiday and regional outbreaks in Yunnan . The latest outbreak in Nanjing , the capital city of Jiangsu province , is still evolving . The Company continues to expect that a full recovery of same - store sales will take time , with the recovery path impacted by regional resurgences and the corresponding public health measures . We will continue to focus on the elements of the business under our control , such as food innovation , compelling value propositions , a focus on customer experience , and operating efficiency , to drive sales and protect margins . Second Quarter Highlights ● Total revenues increased 29 % year over year to $ 2.45 billion from $ 1.90 billion ( a 17 % increase excluding foreign currency translation ( " F / X " ) ) . Total system sales increased 14 % year over year , with increases of 14 % at KFC and 16 % at Pizza Hut , excluding F / X . Same - store sales increased 5 % year over year , with increases of 4 % at KFC and 11 % at Pizza Hut , excluding F / X . Opened 404 new stores during the quarter . Total store count reached 11,023 as of June 30 , 2021 , an increase of 1,069 stores over the past year . ● Restaurant margin was 15.8 % , compared with 13.7 % in the prior year period . Operating Profit increased 83 % year over year to $ 233 million from $ 128 million ( a 65 % increase excluding F / X ) . ● Adjusted Operating Profit increased 80 % year over year to $ 237 million from $ 132 million ( a 63 % increase excluding F / X ) . Yum China Holdings , Inc. • Shanghai , China • Website http://ir.yumchina.com