{"id":17455,"date":"2018-08-12T17:49:05","date_gmt":"2018-08-12T21:49:05","guid":{"rendered":"https:\/\/www.pgmcapital.com\/?p=17455"},"modified":"2018-08-12T17:49:05","modified_gmt":"2018-08-12T21:49:05","slug":"why-investing-in-yum-china-can-be-lucrative-value-investors","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/why-investing-in-yum-china-can-be-lucrative-value-investors\/","title":{"rendered":"Why Investing in Yum China can be Lucrative Value Investors"},"content":{"rendered":"

Dear PGM Blog reader,<\/p>\n

In this weekend blog article, we want to take the opportunity to discuss with you, why Investing in Yum China, can be lucrative for value investors.<\/p>\n

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INTRODUCTION:<\/h3>\n

Yum China Holdings Inc.<\/b>\u00a0is an American-Chinese\u00a0Fortune 500\u00a0fast-food restaurant\u00a0company incorporated in the\u00a0United States\u00a0and is co-headquartered in\u00a0Shanghai, China and\u00a0Plano,Texas USA, and\u00a0operates, and franchises restaurants in China.<\/p>\n

The company operates in two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Taco Bell, East Dawning, and Little Sheep brands, which specialize in chicken, pizza, hot pot cooking, Chinese food, and Mexican-style food categories. The company also provides online food delivery services.<\/p>\n

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With US$ 7.144 billion of revenue in December 2017, the company operated approximately 5,400 KFC restaurants; 2,100 Pizza Hut restaurants; 280 Little Sheep units; 10 East Dawning restaurants; and 3 Taco Bell restaurants. It is the largest restaurant company in\u00a0China. It was spun off from\u00a0Yum! Brands (NYSE:YUM), and became an independent, publicly traded company on the NYSE under the symbol YUMC, on 1 November 2016.<\/p>\n

The company operates more than 7,800 restaurants over 1,100 cities and towns spanning every province and autonomous region across\u00a0Mainland China, and has a workforce of 420,000 employees, representing the 3rd largest labour force in the world.<\/p>\n

Q2-2018 FINANCIAL RESULTS:<\/h3>\n

On Thursday, August 2,\u00a0Yum China Holdings reported a quarterly earnings of $0.36 per share, beating the analyst consensus estimate of $0.33 per share. This compares to earnings of $0.27 per share a year ago.<\/p>\n

The quarter’s numbers:<\/h4>\n
\n\n\n\n\n\n\n\n
Metric<\/strong><\/th>\nQ2 2018<\/strong><\/th>\nQ2 2017<\/strong><\/th>\nYOY Increase<\/strong><\/th>\n<\/tr>\n<\/thead>\n
Revenue<\/td>\n$2.07 billion<\/td>\n$1.84 billion<\/td>\n12%<\/td>\n<\/tr>\n
Operating expenses<\/td>\n$1.88 billion<\/td>\n$1.67 billion<\/td>\n12%<\/td>\n<\/tr>\n
Earnings per share<\/td>\n$0.36<\/td>\n$0.31<\/td>\n16%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Highlights:<\/h4>\n