Finance Associated Press, February 7 (edited by Tong Gu).Yum China (09987.)hk；yumc.NY) released its fourth quarter and full-year financial results announcement this morning, and its Hong Kong stocks rose 28% in early trading, up 14 as of noon48%, 2HK$7.3 billion. According to its announcement, total revenue in 2023 increased by 15% to 109US$0.8 billion, or an increase of 21 per cent (excluding the impact of foreign currency translation).
The company is China's largest F&B company, with well-known brands including KFC, Pizza Hut, Taco Bell, Little Sheep, Huang Ji Huang, and the partner L**Azza Coffee.
Here are the key takeaways from Yum China's 2023 financial results:
Operating profit increased 76% to $1.1 billion in 2023. Core operating profit increased 79%. Diluted earnings per share increased 89% to 1$97. Excludes special projects and 0$11 foreign currency translation and 004 USD loss, which increased by 101%.
The adverse effects of foreign currency translation on total revenue, operating profit and diluted earnings per share were 5$8.9 billion, $61 million and $0$11.
Digital orders generated more than $9.2 billion in revenue, accounting for about 89% of the company's restaurant revenue.
Among them, the total number of members of KFC and Pizza Hut exceeded 4700 million, an increase of 14% over the same period of the previous year. Membership sales account for about 65% of KFC and Pizza Hut system sales.
In 2024, it is planned to buy back 12$500 million of common stock
The Board of Directors declared a 23% increase in the cash dividend per share of Yum China's common stock to 0$16 and payable on March 26, 2024 to shareholders of record as of March 5, 2024.
The company plans to repurchase 12. in the U.S. and Hong Kong through open market trading in 2024$500 million of common stock. Mainly include:
i) repurchase in the United States in 2024 under Section 10b5-1 of the Exchange Act of 1934 and similar programs in Hong Kong in aggregate 7$500 million of common stock.
ii) repurchase of common stock in the United States in the first quarter of 2024 pursuant to Section 10b-18 of the Exchange Act and in Hong Kong through similar transactions.
Goldman Sachs affirms Yum China** rating
Goldman Sachs said in a report today that Yum China's revenue and earnings continued to grow strongly last quarter, with revenue up 19% year-on-year, higher than the bank's expectation of 16%. Same-store sales rose 4% in the last quarter, implying a return to 85% of pre-pandemic levels. As for the company's net new stores last year, it added 1,697 stores, beating the guidance of 1,400 to 1,600 stores and beating the bank's forecast of 1,605. In addition, the bank also said that Yum China reported back to shareholders in the fourth quarter and last year by about 3900 million & 8$3.3 billion, above the guidance range. The company's management has further raised its guidance for this year's targets. The bank believes that this is very important to support the stock price in the context of an unstable macro environment, and has a "** target price of HK$476 for Hong Kong stocks and $61 for U.S. stocks."
Finance Associated Press Tong Gu).