Why Yum China's Stock Is Trading Lower Today

Yum China Holdings Inc YUMC is trading lower after the company provided a business update in which it noted a negative impact from the COVID-19 Delta variant outbreak.

Yum China said the Delta variant outbreak became the most widely spread regional outbreak since the initial COVID-19 outbreak in 2020, impacting 16 provinces. 

At the peak of the outbreak in August, the company said it closed or offered only takeaway and delivery services at more than 500 of its stores. Same-store sales in August 2021 declined by nearly 20% compared to August 2019.

"Strict public health measures were implemented across the country, including closures of many tourist locations. These actions led to substantially lower travel volume, cancelled summer holiday trips and fewer social activities, which significantly impacted the restaurant industry," Yum China said in its business update. 

"While the outbreak has subsided in recent days and restaurant traffic is gradually recovering, our operations continue to be heavily impacted."

YUMC Price Action: Yum China has traded as high as $69.67 and as low as $49.81 over a 52-week period.

The stock was down 6.1% at $57.50 at time of publication.

Photo: Maher Najm from Flickr.