Page 1

EX - 99.1 2 yumc - ex991_6.htm EX - 99.1 PAS YumChina Shanghai , China ( October 27 , 2021 ) - Yum China Holdings , Inc. ( the " Company " or " Yum China " ) ( NYSE : YUMC and HKEX : 9987 ) today reported unaudited results for the third quarter ended September 30 , 2021 . Impact of COVID - 19 Outbreak and Mitigation Efforts As we described in the business update released on September 14 , 2021 , third quarter results were significantly impacted by the Delta variant outbreak that started in late July . This regional outbreak was the most widely spread wave since the first quarter of 2020. Several major cities were locked down , including Nanjing and Yangzhou , which are key cities for us in eastern China . Zhengzhou and Wuhan , the capital cities of Henan and Hubei provinces , respectively , were also significantly affected . In mid - September , there were also smaller regional outbreaks in Fujian and Heilongjiang provinces , in southeastern and northeastern China , respectively . Strict public health measures were implemented across the country , including the closure of many tourist locations . These actions led to fewer social activities , substantially lower travel volume , and cancelled holiday trips . According to government statistics , the restaurant industry in China was considerably impacted in August with a revenue decline of approximately 10 % compared to August 2019. Despite a mild recovery , the restaurant industry's revenue growth of approximately 2 % in September compared to 2019 was the slowest since March 2021 . Yum China Reports Third Quarter 2021 Results Total Revenues grew 9 % . System Sales grew 1 % in constant currency Opened a record of 524 new stores Reported $ 178 million Operating Profit despite Delta variant outbreak , demonstrating resiliency and agility Going into the fourth quarter , strict public health measures remain in effect nationwide . The effects of COVID - 19 persist , such as fewer social activities , cautious consumer spending and subdued travel volume . According to government statistics , for the seven - day National Day holiday that started on October 1 , the number of travelers was down 2 % compared to the same period last year and down 30 % versus the corresponding period in 2019. Related travel spending was down 5 % compared to 2020 and 40 % compared to 2019. With latest regional outbreaks resurging across 12 provinces and rigorous preventative health measures in force across the country , we continue to expect same - store sales recovery to take time . Same - store sales are gradually recovering but remain below the prior year and pre - COVID 2019 levels , since overall dine - in volume as well as traffic at transportation hubs are still significantly impacted . We are focused on driving sales by leveraging our member base and digital channels , launching great food for both dine - in and home consumption and enhancing our hybrid delivery model . ● Third Quarter Highlights Total revenues increased 9 % year over year to $ 2.55 billion from $ 2.35 billion ( a 2 % increase excluding foreign currency translation ( " F / X " ) ) . ● ● Total system sales increased 1 % year over year , with increases of 1 % at both KFC and Pizza Hut , excluding F / X . Same - store sales decreased 7 % year over year , with decreases of 8 % at KFC and 5 % at Pizza Hut , excluding F / X . Opened 524 new stores during the quarter . Exhibit 99.1 Total store count reached 11,415 as of September 30 , 2021 , an increase of 1,265 stores over the past year . Restaurant margin was 12.2 % , compared with 18.6 % in the prior year period , primarily due to sales deleveraging . Operating Profit decreased 68 % year over year to $ 178 million from $ 556 million ( a 70 % decrease excluding F / X ) , primarily due to sales deleveraging and lapping the non - cash gain of $ 239 million from the re - measurement of our previously held equity interest in Suzhou KFC in the third quarter 2020 . Adjusted Operating Profit decreased 48 % year over year to $ 168 million from $ 320 million ( a 52 % decrease excluding F / X ) . Effective tax rate was 28.3 % . Net Income decreased 76 % to $ 104 million from $ 439 million in the prior year period , primarily due to the decrease in Operating Profit and loss from our mark - to - market investment in Meituan . Yum China Holdings , Inc. Shanghai , China ● • Website http://ir.yumchina.com