Yum China Stock Slides As COVID-19 Resurgence Disrupts Operations

by Shivani Kumaresan, Benzinga Staff Writer

March 14, 2022 11:05 AM | 1 min read |

Yum China Holdings Inc YUMC said its first-quarter fiscal 2022 operations are significantly impacted by the highly transmissible Omicron variant causing outbreaks across China, including economically important regions of Guangdong, Shanghai, Shandong, and Jilin.
The company noted quarter-to-date case counts for 2022 have surpassed that of the full year 2021.
Yum China's same-store sales decreased about 4% for the two months combined in January and February and declined 20% for the first two weeks of March, with a further decline in recent days.
The operating profit declined 20% Y/Y for the two months combined due to sales deleveraging and cost inflation. The company sees a Q1 operating profit of $165 million - $200 million.
Price Action: YUMC shares are trading lower by 3.79% at $36.05 on the last check Monday.