Yum China Holdings Inc. late Tuesday gave buyers a contemporary motive to fret about China’s financial system.
Yum China’s shares
YUMC,
fell about 9% within the prolonged session Tuesday after the proprietor of Pizza Hut, KFC and different fast-food manufacturers in China missed Wall Street expectations for its third quarter, saying that “softening consumer demand” emerged in current weeks, and solid doubt about its present quarter.
Quarterly outcomes had been “robust results despite macroeconomic headwinds,” Chief Financial Officer Andy Yeung stated in a press release.
Same-store gross sales progress was “solid” however “we observed softening consumer demand emerged in late September through October,” the manager stated.
“Looking ahead, the fourth quarter is a seasonally small quarter in terms of sales and profits; hence small fluctuations in sales could have a more pronounced impact on our margins,” Yeung stated.
Yum China earned $244 million, or 58 cents a share, within the third quarter, in contrast with $206 million, or 49 cents a share, within the year-ago interval. Adjusted for one-time objects, Yum China earned 59 cents a share.
Revenue rose 9% to $2.91 billion, from $2.68 billion a 12 months in the past. Same-store gross sales elevated 4% 12 months over 12 months, together with 4% will increase at KFC and a couple of% at Pizza Hut, the corporate stated.
Analysts surveyed by FactSet anticipated the corporate to report adjusted earnings of 65 cents a share on gross sales of $3.12 billion.
Shares of Yum China have misplaced 4% up to now this 12 months, contrasting with good points of round 9% for the S&P 500 index
SPX.
Source web site: www.marketwatch.com
