(Corrects same-store sales results for restaurants in third
LOS ANGELES Feb 7 Yum China Holdings Inc
, reporting for the first time as a standalone company,
on Tuesday said its profit beat expectations for the fourth
quarter despite just missing Wall Street's target for sales at
Shares in the company, which is China's largest publicly
held restaurant operator with 7,562 units, were up 1 percent at
$28.40 in thin after-hours trading.
Same-store sales were flat after a 1 percent increase at KFC
was offset by a decline of 3 percent at Pizza Hut Casual Dining.
Analysts polled by Consensus Metrix expected a 0.1 percent
uptick in same-store sales.
Rivals McDonald's Corp and Starbucks Corp
reported same-store sales gains of 7.9 percent and 6 percent,
respectively, from China for the latest quarter.
Yum China's fourth-quarter net income was $88 million, or 23
cents per share, on revenue of $1.98 billion. Profit excluding
special items was 17 cents per share.
Analysts had expected a profit of 8 cents per share on
revenue of $2.05 billion, according to Thomson Reuters I/B/E/S.
Chief Executive Officer Micky Pant said on a conference call
with analysts that he was "cautiously optimistic" about the
company's business amid rising costs for labor and commodities,
stiff competition and simmering protectionist sentiments.
Yum China started trading as a standalone company on Nov. 1.
Prior to the separation, it had been the primary profit and
sales driver for Yum Brands Inc.
(Reporting by Lisa Baertlein in Los Angeles; Editing by James
Dalgleish and Lisa Shumaker)