Yum China Holdings, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Yum China Holdings, Inc. has filed its Q1 2024 10-Q report, detailing financial performance and segment data.</b>

AI Summary

Yum China Holdings, Inc. (YUMC) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Yum China Holdings, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing includes data related to operating segments, revenue from external customers, and transactions with franchisees. Specific financial elements mentioned include Property, Plant and Equipment Net, Accounts Payable and Accrued Liabilities Current, and Retained Earnings. The report references various US GAAP standards and company-specific member identifiers. Key dates and periods covered include Q1 of three years and specific dates like 2024-03-31 and 2023-03-31.

Why It Matters

For investors and stakeholders tracking Yum China Holdings, Inc., this filing contains several important signals. This filing provides investors and analysts with the latest financial snapshot of Yum China's operations, including revenue streams and liabilities. Understanding the segment-specific data and financial line items is crucial for assessing the company's performance and future outlook in the competitive Chinese market.

Risk Assessment

Risk Level: medium — Yum China Holdings, Inc. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains detailed financial information but does not usually include significant new strategic announcements or material adverse events that would drastically alter risk.

Analyst Insight

Review the detailed segment revenues and growth percentages to understand brand performance within Yum China's portfolio.

Key Numbers

• 2024-03-31 — Period End Date (Conformed period of report)
• 2024-05-08 — Filing Date (Date the report was filed)
• Q1 — Quarter (Reporting quarter)
• 2023-01-01 to 2023-03-31 — Comparative Period (Reference period for comparative data)
• 2024-01-01 to 2024-03-31 — Current Period (Reporting period for Q1 2024)

Key Players & Entities

• Yum China Holdings, Inc. (company) — Filer of the 10-Q report
• 2024-03-31 (date) — Period of report
• 2024-05-08 (date) — Filing date
• 0000950170-24-055031 (filing_id) — Accession number for the filing
• 5812 (sic_code) — Standard Industrial Classification for Retail-Eating Places
• DE (state) — State of incorporation
• 101 EAST PARK BOULEVARD, SUITE 805 (address) — Business and mail address
• Plano, TX (location) — City and State of business address

FAQ

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date Yum China submitted its 10-Q to the SEC.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share YUMC New York Stock Excha

Filing Documents

• yumc-20240331.htm (10-Q) — 3217KB
• yumc-ex31_1.htm (EX-31.1) — 12KB
• yumc-ex31_2.htm (EX-31.2) — 12KB
• yumc-ex32_1.htm (EX-32.1) — 8KB
• yumc-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-055031.txt (&nbsp;) — 12296KB
• yumc-20240331.xsd (EX-101.SCH) — 1554KB
• yumc-20240331_htm.xml (XML) — 2533KB

– Financial Statements

Item 1 – Financial Statements 3 Condensed Consolidated Statements of Income – Quarters Ended March 31, 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Comprehensive Income – Quarters Ended March 31, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows – Quarters Ended March 31, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Balance Sheets – March 31, 2024 (Unaudited) and December 31, 2023 6 Condensed Consolidated Statements of Equity – Quarters Ended March 31, 2024 and 2023 (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8

– Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations 23

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 39

– Controls and Procedures

Item 4 – Controls and Procedures 39 Part II. Other Information

– Legal Proceedings

Item 1 – Legal Proceedings 40

– Risk Factors

Item 1A – Risk Factors 40

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 40

– Other Information

Item 5 – Other Information 40

– Exhibits

Item 6 – Exhibits 41

Signatures

Signatures 42

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements Condensed Consolidated State ments of Income (Unaudited) Yum China Holdings, Inc. (in US$ millions, except per share data) Quarter Ended Revenues 3/31/2024 3/31/2023 Company sales $ 2,794 $ 2,772 Franchise fees and income 25 25 Revenues from transactions with franchisees 107 93 Other revenues 32 27 Total revenues 2,958 2,917 Costs and Expenses, Net Company restaurants Food and paper 896 835 Payroll and employee benefits 708 683 Occupancy and other operating expenses 697 691 Company restaurant expenses 2,301 2,209 General and administrative expenses 140 163 Franchise expenses 10 10 Expenses for transactions with franchisees 104 91 Other operating costs and expenses 29 24 Closures and impairment expenses, net 1 3 Other (income) expenses, net ( 1 ) 1 Total costs and expenses, net 2,584 2,501 Operating Profit 374 416 Interest income, net 38 38 Investment gain (loss) 8 ( 17 ) Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments 420 437 Income tax provision ( 113 ) ( 125 ) Equity in net earnings (losses) from equity method investments — 1 Net income – including noncontrolling interests 307 313 Net income – noncontrolling interests 20 24 Net Income – Yum China Holdings, Inc. $ 287 $ 289 Weighted-average common shares outstanding (in millions): Basic 401 418 Diluted 403 423 Basic Earnings Per Common Share $ 0.72 $ 0.69 Diluted Earnings Per Common Share $ 0.71 $ 0.68 See accompanying Notes to Condensed Consolidated Financial Statements. 3 Condensed Consolidated Statements o f Comprehensive Income (Unaudited) Yum China Holdings, Inc. (in US$ millions) Quarter Ended 3/31/2024 3/31/2023 Net income – including noncontrolling interests $ 307 $ 313 Other comprehensive