Yum China Holdings, Inc

Yum China (YUMC.US): COVID-19 Headwind Will Have More Impacts in Q2

Equity Bottom-Up
352 Views, 14 May 2022 03:42
Roger has highlighted this Insight as a Top Pick
EXECUTIVE SUMMARY
  • Yum China Holdings, Inc (YUMC US) delivered a better-than-fear 1Q22 results helped by its strong execution. KFC delivered solid margins above expectations given its store format and take-out service.
  • China COVID outbreak is getting worst, we expect 3000 stores will cancel dine-in service in April (compared with 1700 stores in March). Yum China might have deeper loss in 2Q22. 
  • We continue to think Yum China is the best-run restaurant chain in China. It has resilient business model to navigate through pandemic. Risk/reward is more compelling to own Yum China.
detail (3-minute read)
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Roger Xie
Equity Analyst, China and US
ChinaEquity Bottom-Up

10 year investment experience on public and private equity. Deep-dive fundamental research. Specialize in China and US m... 

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