Yum China reports Q1 adjusted EPS 87c, consensus 85c

Reports Q1 revenue $3.3B, consensus $3.23B. Same-store sales reached 100% of the prior year’s level. Same-store transactions grew 2% year-over-year. Joey Wat, CEO of Yum China (YUMC), commented, “We delivered solid results in a dynamic environment, and remain encouraged by early signs of improving consumer sentiment. The late timing of Chinese New Year and the extra April spring break affected gathering patterns and same-store sales growth in Q1. However, combined March and April trading has so far been in line with our expectations. In Q1, we accelerated store openings to a record level to capture significant market opportunities. At the same time, we drove system sales growth, operating profit growth and OP margin expansion for the eighth consecutive quarter, thanks to our teams’ dedication.”