Yum China Holdings Files Q2 2024 10-Q

TL;DR

**YUMC Q2 10-Q FILED: Check financials for China's biggest restaurant operator.**

AI Summary

Yum China Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial data and business segment information are presented, reflecting the company's ongoing activities in the restaurant industry.

Why It Matters

This filing provides investors with the latest financial results and operational details for Yum China, a major player in the Chinese restaurant market, impacting its stock performance and investor confidence.

Risk Assessment

Risk Level: medium — As a publicly traded company, Yum China faces inherent market, operational, and regulatory risks typical of the fast-food industry, especially in a large, dynamic market like China.

Key Numbers

• N/A — Revenue (Specific revenue figures for Q2 2024 are not detailed in this header information.)
• N/A — Net Income (Specific net income figures for Q2 2024 are not detailed in this header information.)
• N/A — Operating Segments (The filing references operating segments, but specific financial performance per segment is not in the header.)

Key Players & Entities

• Yum China Holdings, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240809 (date) — Date of filing

FAQ

Key Financial Figures

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

Filing Documents

• yumc-20240630.htm (10-Q) — 4885KB
• yumc-ex31_1.htm (EX-31.1) — 13KB
• yumc-ex31_2.htm (EX-31.2) — 13KB
• yumc-ex32_1.htm (EX-32.1) — 8KB
• yumc-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-094324.txt ( ) — 15426KB
• yumc-20240630.xsd (EX-101.SCH) — 1471KB
• yumc-20240630_htm.xml (XML) — 3329KB

– Financial Statements

Item 1 – Financial Statements 3 Condensed Consolidated Statements of Income – Quarters and Years to Date Ended June 30, 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Comprehensive Income – Quarters and Years to Date Ended June 30, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows – Years to Date Ended June 30, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Balance Sheets – June 30, 2024 (Unaudited) and December 31, 2023 6 Condensed Consolidated Statements of Equity – Quarters and Years to Date Ended June 30, 2024 and 2023 (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 9

– 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 25

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 43

– Controls and Procedures

Item 4 – Controls and Procedures 43 Part II. Other Information

– Legal Proceedings

Item 1 – Legal Proceedings 44

– Risk Factors

Item 1A – Risk Factors 44

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 44

– Other Information

Item 5 – Other Information 44

– Exhibits

Item 6 – Exhibits 45

Signatures

Signatures 46

– 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 Year to Date Ended Revenues 6/30/2024 6/30/2023 6/30/2024 6/30/2023 Company sales $ 2,528 $ 2,517 $ 5,322 $ 5,289 Franchise fees and income 22 21 47 46 Revenues from transactions with franchisees 96 89 203 182 Other revenues 33 27 65 54 Total revenues 2,679 2,654 5,637 5,571 Costs and Expenses, Net Company restaurants Food and paper 797 773 1,693 1,608 Payroll and employee benefits 666 665 1,374 1,348 Occupancy and other operating expenses 674 675 1,371 1,366 Company restaurant expenses 2,137 2,113 4,438 4,322 General and administrative expenses 133 153 273 316 Franchise expenses 9 9 19 19 Expenses for transactions with franchisees 92 84 196 175 Other operating costs and expenses 29 24 58 48 Closures and impairment expenses, net 13 14 14 17 Other (income) expenses, net — — ( 1 ) 1 Total costs and expenses, net 2,413 2,397 4,997 4,898 Operating Profit 266 257 640 673 Interest income, net 31 40 69 78 Investment gain (loss) 8 ( 11 ) 16 ( 28 ) Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments 305 286 725 723 Income tax provision ( 77 ) ( 71 ) ( 190 ) ( 196 ) Equity in net earnings (losses) from equity method investments — ( 1 ) — — Net income – including noncontrolling interests 228 214 535 527 Net income – noncontrolling interests 16 17 36 41 Net Income – Yum China Holdings, Inc. $ 212 $ 197 $ 499 $ 486 Weighted-average common shares outstanding (in millions): Basic 389 418 395 418 Diluted 391 422 397 423 Basic Earnings Per Common Share