Yum China Q3 Earnings Surprise: KFC & Pizza Hut Power Earnings Beat, Reiterates Capex Plan To Open ~1,500-1,700 Net New Stores

Yum China Holdings, Inc. (NYSE:YUMC) shares are trading higher after the company reported third-quarter results.

Revenue increased 5% year over year to $3.07 billion, beating the consensus of $3.05 billion.

Total system sales rose 4% year over year, excluding currency effects, due to a 7% increase in net new units.

Same-store sales were at 97% of last year’s level, with same-store transactions up 1% in the quarter.

Yum China’s delivery sales rose 18% year-over-year, continuing the double-digit annual growth trend the company has maintained for over a decade.

Digital sales hit $2.61 billion in the quarter, with digital ordering comprising about 90% of total company sales.

KFC’s system sales grew 6%, driven by an 8% contribution from new units, while Pizza Hut’s system sales rose 2%, also boosted by a 7% increase from new units.

Core operating profit grew 18% to $369 million, with a margin of 12.1% vs. 10.7% a year ago quarter. Adjusted EPS of $0.77 surpassed the street ...