Shares of Yum China Holdings, Inc. (YUMC) plummeted 5.21% in pre-market trading on Wednesday following the release of the company's first-quarter 2025 earnings report. The fast-food giant, which operates KFC and Pizza Hut in China, reported results that fell short of analysts' expectations, triggering a sell-off among investors.
According to the earnings release, Yum China posted adjusted earnings per share of $0.77, missing the consensus estimate of $0.78. Revenue for the quarter came in at $2.98 billion, falling short of the projected $3.09 billion. The company's same-store sales were flat year-over-year, indicating stagnant growth in its existing restaurant base.
Despite the disappointing results, Yum China reported some positive developments. The company continued its expansion efforts, opening 247 net new stores during the quarter. Additionally, delivery sales grew by 13% year-over-year, maintaining the double-digit annual growth the company has sustained over the past 11 years. However, these bright spots were not enough to offset investor concerns about the overall performance and near-term growth prospects.
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