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公允价值输入一级成员us-gaap:重复计量公允价值会员2024-09-300001673358us-gaap:运营业务细分会员YUMC：特许权费和会员收入us-gaap:其他所有分段成员2023-01-012023-09-300001673358US-GAAP：普通股成员2024-06-300001673358yumc：可赎回的非控制权益成员2023-01-012023-09-300001673358us-gaap:运营业务细分会员yumc：肯德基成员2024-09-300001673358US-GAAP：普通股成员2023-06-300001673358us-gaap:运营业务细分会员yumc：肯德基成员2023-12-310001673358us-gaap:运营业务细分会员us-gaap:其他所有分段成员2023-07-012023-09-3000016733582024-06-300001673358yumc：可赎回的非控制权益成员2023-06-300001673358美元指数: 应付股本会员2023-01-012023-09-300001673358美元指数: 应付股本会员2024-01-012024-09-300001673358yumc：经营部门和公司非部门成员yumc：特许经营费和收入成员2024-07-012024-09-300001673358us-gaap:运营业务细分会员yumc：部门间收入成员us-gaap:其他所有分段成员2024-07-012024-09-300001673358美元指数:非控股权成员2023-07-012023-09-300001673358us-gaap:运营业务细分会员yumc：特许权使用费和收入成员us-gaap:其他所有分段成员2023-07-012023-09-300001673358yumc：经营板块和企业非板块成员yumc：销售的食品和非食品收入成员2023-01-012023-09-300001673358us-gaap:运营业务细分会员yumc：来自外部客户的收入成员yumc：肯德基会员2023-07-012023-09-300001673358us-gaap:TrademarksMemberyumc：小肥羊会员2024-09-300001673358us-gaap:运营业务细分会员yumc：其他收入会员us-gaap:其他所有分段成员2024-01-012024-09-300001673358yumc：股权投资会员美国通用会计准则: 公允价值输入一级成员us-gaap:重复计量公允价值会员2024-09-300001673358yumc：客户相关资产成员2024-09-300001673358us-gaap：留存收益成员2024-06-300001673358yumc：可赎回的非控股权益成员2023-09-300001673358yumc：必胜客成员srt：最低会员2024-09-300001673358us-gaap：留存收益成员2023-07-012023-09-300001673358yumc：必胜客成员yumc：与特许经营者成员的交易us-gaap:运营业务细分会员2024-01-012024-09-300001673358yumc：股权投资成员us-gaap:重复计量公允价值会员2024-09-300001673358yumc：其他有限寿命周期无形资产成员2023-12-310001673358us-gaap：留存收益成员2024-09-300001673358yumc：与特许经营者成员的交易yumc：经营部门和公司非部门成员2024-01-012024-09-300001673358yumc：必胜客会员us-gaap:运营业务细分会员yumc：外部客户营收会员2024-01-012024-09-300001673358yumc：公司及未分配会员us-gaap:运营业务细分会员yumc：其他收入会员2023-07-012023-09-300001673358us-gaap：公允价值输入二级成员us-gaap:重复计量公允价值会员2023-12-310001673358yumc：必胜客会员us-gaap:运营业务细分会员yumc：特许费和收入会员2024-07-012024-09-300001673358yumc：公司及未分配会员us-gaap:运营业务细分会员yumc：其他收入会员2024-01-012024-09-300001673358yumc：与特许经营者的交易会员us-gaap:运营业务细分会员us-gaap:其他所有分段成员2023-07-012023-09-300001673358yumc：上海会员yumc：肯德基业主和运营商会员yumc：肯德基会员2024-09-300001673358yumc：经营部门和公司非部门会员yumc：销售的食品和非食品收入会员2024-01-012024-09-300001673358us-gaap:其他所有分段成员2023-01-012023-09-300001673358yumc：经营部门和公司非部门会员2024-01-012024-09-300001673358us-gaap:运营业务细分会员yumc：特许经营费用和会员收入yumc：肯德基会员2024-01-012024-09-3000016733582015-02-012015-02-280001673358us-gaap:运营业务细分会员yumc：销售的食品和非食品收入会员us-gaap:其他所有分段成员2024-01-012024-09-300001673358yumc：肯德基的业主和经营者会员yumc：无锡会员YUMC：肯德基会员2024-09-300001673358YUMC：经营部门和企业非部门成员YUMC：特许经营费和收入会员2023-01-012023-09-300001673358YUMC：苏州会员YUMC：肯德基的业主和经营者会员YUMC：肯德基会员2024-09-300001673358美元指数:非控股权成员2023-01-012023-09-300001673358US-GAAP:非经常性成员的公允价值测量2024-09-300001673358us-gaap：其他综合收益的累计成员2024-07-012024-09-300001673358us-gaap:企业非部门会员2024-01-012024-09-3000016733582023-12-310001673358us-gaap:运营业务细分会员us-gaap:其他所有分段成员2024-07-012024-09-300001673358美元指数:非控股权成员2023-12-310001673358美元指数:非控股权成员2024-01-012024-09-300001673358srt：最低会员YUMC：肯德基会员2024-09-300001673358鸭肠:可赎回非控股权益成员2023-12-3100016733582022-08-012022-08-310001673358srt:最大成员鸭肠:黄记煌成员2024-01-012024-09-300001673358us-gaap:重复计量公允价值会员US-GAAP：FixedIncomeSecuritiesMember2023-12-310001673358鸭肠:必胜客成员us-gaap:运营业务细分会员2023-07-012023-09-300001673358鸭肠:与特许经营者的交易成员yumc：经营部门和公司非部门成员2024-07-012024-09-300001673358us-gaap:运营业务细分会员us-gaap:其他所有分段成员2024-09-300001673358yumc：肯德基成员2023-01-012023-12-3100016733582024-11-0400016733582022-12-310001673358yumc：来自外部客户的收入成员2024-01-012024-09-300001673358美元指数: 应付股本会员2023-06-300001673358us-gaap:运营业务细分会员us-gaap:其他所有分段成员2024-01-012024-09-300001673358餐食公司：经营部门和企业非部门成员2023-01-012023-09-300001673358us-gaap:运营业务细分会员餐食公司：与特许经营者的交易成员餐食公司：肯德基成员2024-07-012024-09-300001673358餐食公司：经营部门和企业非部门成员餐食公司：来自销售的食品和非食品收入成员2024-07-012024-09-300001673358餐食公司：必胜客成员餐食公司：与特许经营者的交易成员us-gaap:运营业务细分会员2023-07-012023-09-300001673358Taco Bell会员2024-01-012024-09-300001673358企业和未分配会员us-gaap:运营业务细分会员其他收入会员2023-01-012023-09-300001673358对股权证券的投资会员us-gaap:重复计量公允价值会员2023-12-310001673358福建三诺发展股份有限公司会员2024-09-300001673358yumc：与特许经营者成员的交易us-gaap:运营业务细分会员yumc：肯德基会员2023-01-012023-09-300001673358us-gaap:企业非部门会员2023-12-310001673358yumc：肯德基会员2023-12-310001673358us-gaap:运营业务细分会员yumc：特许费和收入会员yumc：肯德基会员2023-07-012023-09-300001673358yumc：公司和未分配成员us-gaap:运营业务细分会员2023-07-012023-09-300001673358us-gaap:运营业务细分会员yumc：销售成员的食品和非食品收入us-gaap:其他所有分段成员2024-07-012024-09-300001673358yumc：公司和未分配成员us-gaap:运营业务细分会员2024-01-012024-09-300001673358美国公认会计原则（US-GAAP）：公允价值输入级别3成员yumc：餐厅会员US-GAAP:非经常性成员的公允价值测量2024-01-012024-09-300001673358yumc：福建三诺发展股份有限公司会员2023-01-012023-12-310001673358yumc：必胜客会员2023-07-012023-09-300001673358yumc：杭州餐饮会员2024-09-300001673358yumc：必胜客会员us-gaap:运营业务细分会员yumc：食品和非食品销售收入会员2024-07-012024-09-300001673358yumc : 必胜客会员us-gaap:运营业务细分会员yumc : 外部客户收入会员2023-01-012023-09-300001673358美元指数: 应付股本会员2024-06-300001673358yumc : 杭州餐饮会员2023-12-310001673358yumc : 美团点评会员2023-01-012023-09-300001673358yumc : 经营板块和公司非板块会员yumc : 板块间收入会员2023-01-012023-09-300001673358yumc：预付特许权使用费会员2024-09-300001673358yumc：必胜客会员us-gaap:运营业务细分会员yumc：其他收入会员2023-01-012023-09-300001673358yumc：黄记煌集团会员2023-12-310001673358srt：最低会员yumc：黄记煌会员2024-01-012024-09-300001673358yumc：公司及未分配会员us-gaap:运营业务细分会员yumc：来自外部客户的营业收入会员2023-01-012023-09-300001673358us-gaap:运营业务细分会员yumc：来自外部客户的营业收入会员yumc：肯德基会员2024-07-012024-09-300001673358us-gaap:运营业务细分会员yumc：其他收入会员yumc：肯德基会员2024-01-012024-09-300001673358us-gaap:运营业务细分会员yumc：其他收入会员yumc：肯德基会员2024-07-012024-09-300001673358us-gaap:其他所有分段成员2023-01-012023-12-310001673358srt:最大成员2024-07-012024-09-300001673358yumc：公司和未分配成员us-gaap:运营业务细分会员yumc：分部间收入会员2023-07-012023-09-300001673358yumc：福建圣农发展股份有限公司会员2023-07-012023-09-300001673358yumc：香港交易所会员2024-01-012024-09-300001673358yumc：主要为建筑物的融资租赁会员2024-09-300001673358us-gaap:运营业务细分会员yumc：食品和非食品销售收入会员yumc：肯德基会员2023-01-012023-09-300001673358us-gaap:运营业务细分会员yumc：特许经营费用和收入会员yumc：肯德基会员2023-01-012023-09-300001673358us-gaap:运营业务细分会员yumc：其他营收会员us-gaap:其他所有分段成员2023-01-012023-09-300001673358yumc：肯德基的所有者和经营者会员yumc：北京会员yumc：肯德基会员2024-09-300001673358us-gaap:TrademarksMemberyumc：黄记煌集团会员2024-09-300001673358跨业务板块清算成员yumc：其他营收会员2024-01-012024-09-300001673358yumc：预付储值产品会员2023-12-310001673358us-gaap：其他综合收益的累计成员2022-12-310001673358US-GAAP：普通股成员2023-07-012023-09-300001673358yumc：必胜客会员us-gaap:运营业务细分会员yumc：销售会员的食品和非食品收入2024-01-012024-09-300001673358yumc：公司和未分配成员us-gaap:运营业务细分会员yumc：其他收入成员2024-07-012024-09-300001673358yumc：运营部门和公司非部门成员的营运部门yumc：其他收入成员2024-01-012024-09-300001673358US-GAAP：普通股成员2023-01-012023-09-300001673358yumc：运营部门和公司非部门成员的营运部门yumc：内部业务收入会员2024-01-012024-09-300001673358us-gaap：其他综合收益的累计成员2023-06-300001673358us-gaap:重复计量公允价值会员yumc：可变回报投资会员2023-12-310001673358美元指数: 应付股本会员2023-09-3000016733582023-06-300001673358us-gaap:运营业务细分会员yumc：肯德基会员2024-01-012024-09-300001673358其他地址成员2024-01-012024-09-300001673358yumc：销售会员的食品和非食品收入2024-01-012024-09-300001673358us-gaap:运营业务细分会员yumc：与特许经营者的交易会员us-gaap:其他所有分段成员2024-01-012024-09-300001673358us-gaap：公允价值输入二级成员us-gaap:重复计量公允价值会员2024-09-300001673358us-gaap:其他所有分段成员2024-07-012024-09-300001673358yumc：小肥羊会员2024-01-012024-09-300001673358us-gaap:运营业务细分会员外部客户收入会员KFC会员2024-01-012024-09-300001673358其他收入会员2024-01-012024-09-300001673358与特许经营商的交易会员us-gaap:运营业务细分会员us-gaap:其他所有分段成员2023-01-012023-09-300001673358特许费和收入会员2023-01-012023-09-300001673358yumc：杭州餐饮会员2023-01-012023-12-310001673358美国通用会计准则：货币市场基金成员us-gaap:重复计量公允价值会员2023-12-310001673358US-GAAP:非经常性成员的公允价值测量2023-09-300001673358yumc：必胜客会员us-gaap:运营业务细分会员2023-01-012023-09-300001673358yumc：黄记黄集团会员2024-09-300001673358跨业务板块清算成员2023-07-012023-09-300001673358us-gaap:TreasuryStockCommonMember2024-07-012024-09-300001673358yumc：其他收入会员2024-07-012024-09-300001673358yumc：其他收入会员2023-01-012023-09-300001673358美元指数: 应付股本会员2024-09-300001673358US-GAAP：普通股成员2022-12-310001673358跨业务板块清算成员yumc：其他收入会员2023-01-012023-09-300001673358yumc：O 2024 Q 4 分红会员2024-11-042024-11-040001673358yumc：来自外部客户收入会员2023-01-012023-09-300001673358yumc：销售的食品和非食品收入会员2023-01-012023-09-300001673358us-gaap:企业非部门会员2023-01-012023-09-300001673358yumc：非现金交易会员2023-01-012023-09-300001673358us-gaap:重复计量公允价值会员2024-09-300001673358us-gaap：公允价值输入二级成员yumc：结构性存款会员us-gaap:重复计量公允价值会员2024-09-300001673358yumc：必胜客会员us-gaap:运营业务细分会员yumc：来自销售的食品和非食品收入会员2023-01-012023-09-300001673358us-gaap:运营业务细分会员yumc：肯德基会员2023-01-012023-09-3000016733582024-01-012024-09-300001673358US-GAAP：普通股成员2023-12-310001673358yumc：必胜客会员2023-01-012023-09-300001673358yumc：美团点评会员2024-07-012024-09-300001673358yumc：预付储值产品会员2024-09-300001673358us-gaap:BankTimeDepositsMemberus-gaap：公允价值输入二级成员us-gaap:重复计量公允价值会员2023-12-310001673358yumc：公司及未分配会员yumc：与特许经营者的交易会员us-gaap:运营业务细分会员2023-01-012023-09-300001673358yumc：特许经营费用和收入会员2023-07-012023-09-300001673358us-gaap：留存收益成员2023-12-310001673358酉阳鸡：福建三元发展股份有限公司会员2021-03-310001673358酉阳鸡：杭州餐饮会员2021-10-012021-12-310001673358跨业务板块清算成员2023-01-012023-09-300001673358酉阳鸡：必胜客会员us-gaap:运营业务细分会员2023-12-310001673358酉阳鸡：肯德基会员2023-07-012023-09-300001673358酉阳鸡：与特许经营者的交易会员Yumc: 经营部门和公司非部门成员2023-01-012023-09-300001673358Yumc: 肯德基和必胜客成员2024-01-012024-09-300001673358Yumc: 肯德基成员2024-07-012024-09-300001673358Yumc: 硬性租赁主要为建筑物成员2023-12-310001673358Yumc: 可赎回的非控股权益成员2023-07-012023-09-300001673358Yumc: 必胜客成员us-gaap:运营业务细分会员Yumc: 与特许经营者的交易成员2023-01-012023-09-300001673358yumc：美团点评会员2024-01-012024-09-300001673358yumc：必胜客会员us-gaap:运营业务细分会员yumc：来自外部客户的收入会员2023-07-012023-09-300001673358yumc：公司和未分配会员us-gaap:运营业务细分会员yumc：来自外部客户的收入会员2024-07-012024-09-300001673358yumc：美团点评会员2023-07-012023-09-300001673358yumc：公司及未分配成员us-gaap:运营业务细分会员yumc：外部客户收入成员2024-01-012024-09-300001673358yumc：到家平台成员2024-09-3000016733582023-01-012023-09-300001673358美国通用会计准则：机械设备成员2024-09-300001673358yumc：福建三诺发展有限公司成员2023-12-310001673358us-gaap：其他综合收益的累计成员2024-01-012024-09-300001673358美国通用会计准则: 公允价值输入一级成员us-gaap:重复计量公允价值会员yumc：可变回报投资会员2023-12-310001673358us-gaap：其他综合收益的累计成员2023-09-300001673358美元指数:非控股权成员2023-09-300001673358us-gaap：其他综合收益的累计成员2023-01-012023-09-300001673358us-gaap：公允价值输入二级成员yumc：结构性存款会员us-gaap:重复计量公允价值会员2023-12-310001673358yumc：结构性存款会员us-gaap:重复计量公允价值会员2024-09-300001673358us-gaap：其他综合收益的累计成员2023-12-310001673358yumc：公司餐厅费用会员2023-01-012023-09-300001673358关联方成员us-gaap：应付账款及应计负债成员yumc：福建三诺发展有限公司会员2024-09-300001673358yumc：美团点评会员2018-09-300001673358yumc：外部客户营收会员2023-07-012023-09-300001673358yumc：其他有限寿命无形资产会员2024-09-300001673358yumc：必胜客会员us-gaap:运营业务细分会员yumc：与特许经营者交易会员2024-07-012024-09-300001673358yumc：到家平台会员2023-12-310001673358美元指数:非控股权成员2024-06-300001673358yumc：必胜客会员us-gaap:运营业务细分会员yumc：外部客户收入会员2024-07-012024-09-300001673358yumc：经营部门和企业非部门会员yumc：其他收入会员2024-07-012024-09-300001673358US-GAAP：普通股成员2023-09-300001673358yumc：与特许经营者的交易会员2024-01-012024-09-300001673358美元指数:非控股权成员2023-06-300001673358yumc：结构性存款会员us-gaap:重复计量公允价值会员2023-12-310001673358us-gaap:运营业务细分会员yumc：特许权费和收入成员us-gaap:其他所有分段成员2024-01-012024-09-300001673358us-gaap:其他所有分段成员2024-09-300001673358yumc：经营部门和公司非部门成员yumc：销售的食品和非食品收入成员2023-07-012023-09-300001673358美国通用会计准则: 公允价值输入一级成员美国通用会计准则：货币市场基金成员us-gaap:重复计量公允价值会员2023-12-310001673358us-gaap:运营业务细分会员yumc：销售会员的食品和非食品收入yumc：肯德基会员2023-07-012023-09-300001673358yumc：特权会员计划会员2024-09-300001673358us-gaap:运营业务细分会员yumc：分部间收入会员us-gaap:其他所有分段成员2024-01-012024-09-300001673358美国通用会计准则: 公允价值输入一级成员us-gaap:重复计量公允价值会员US-GAAP：FixedIncomeSecuritiesMember2023-12-3100016733582023-07-012023-09-300001673358yumc：可赎回的非控制权益成员2024-09-300001673358us-gaap:运营业务细分会员yumc：与特许经营者交易成员yumc：肯德基成员2024-01-012024-09-300001673358srt:最大成员2023-07-012023-09-300001673358yumc：修改或其他重新评估事件会员2023-01-012023-09-300001673358us-gaap:运营业务细分会员yumc：其他收入会员us-gaap:其他所有分段成员2023-07-012023-09-300001673358yumc：经营部门和公司非部门成员yumc：部门间收入会员2024-07-012024-09-300001673358yumc：必胜客会员us-gaap:运营业务细分会员餐饮：特许经营费用和收入成员2024-01-012024-09-300001673358餐饮：运营部门和公司非部门成员2024-07-012024-09-300001673358美国通用会计准则: 公允价值输入一级成员us-gaap:重复计量公允价值会员餐饮：可变回报投资成员2024-09-300001673358餐饮：杭州餐饮成员2024-01-012024-09-300001673358us-gaap:运营业务细分会员yumc：肯德基会员2023-07-012023-09-300001673358yumc：肯德基会员2024-09-300001673358us-gaap:企业非部门会员2024-07-012024-09-300001673358us-gaap：留存收益成员2023-09-300001673358跨业务板块清算成员yumc：其他营收会员2024-07-012024-09-300001673358yumc：公司及未分配会员yumc：与特许经营者交易会员us-gaap:运营业务细分会员2024-01-012024-09-300001673358us-gaap：公允价值输入二级成员us-gaap:重复计量公允价值会员US-GAAP：FixedIncomeSecuritiesMember2023-12-310001673358YUMC：食品和非食品销售会员收入2023-07-012023-09-30iso4217:USDxbrli:股份xbrli：纯形yumc: 选段xbrli:股份yumc:餐厅iso4217:USD

美国

证券交易委员会

华盛顿特区20549

 

表格 10-Q

 

（标记一）

☒

根据1934年证券交易法第13或15(d)节的季度报告

 

截至季度结束日期的财务报告9月30日， 2024

 

或者

 

☐

根据1934年证券交易法第13或15(d)节的转型报告书

 

在从__________过渡到____________的过渡期间

 

佣金文件号 001-37762

 

 

百胜中国控股有限公司

（按其章程规定的确切注册人名称）

 

特拉华州

 

81-2421743

（注册或组织的）提起诉讼的州或其他司法管辖区（如适用）

 

（IRS雇主

组建国的驻地

 

唯一识别号码）

 

 

 

东公园大道101号，805室

普莱诺, 得克萨斯州 75074

美利坚合众国

 

百胜中国大厦

天钥桥路20号

上海 200030

中华人民共和国。

 

(主要行政办公室地址，包括邮政编码)

(469) 980-2898

(注册人电话号码，包括区号)

 

（如果公司名称、地址或财年自上次报告以来有变更，请标明之前的名称、地址和财年）

在法案第12(b)条的规定下注册的证券：

 

每一类的名称

交易标志

在其上注册的交易所的名称

普通股，每股面值0.01美元

YUMC

请使用moomoo账号登录查看New York Stock Exchange

9987

香港联合交易所有限公司

 

请用复选标记表示：注册人（1）根据1934年证券交易法第13或 15(d)条款在过去12个月内已经提交了所有要求提交的报告（或者对于注册人需要提交此类报告的较短期间），并且（2）在过去90天内一直受到此类提交要求的约束。 Yes ☒否☐

请用勾号勾选以下内容：c注册人是否已在过去的12个月内（或c注册人需要提交此类文件的更短期限内）按照S-T法规第405条规定的要求递交了每份互动数据文件。Yes根据交易所法规12b-2中“大型加速文件报告人”，“加速文件报告人”，“小型报告公司”和“新兴增长公司”的定义，请勾选发行人是否为大型加速文件报告人。

勾选以下选框，指示申报人是大型加速评估提交人、加速评估提交人、非加速评估提交人、小型报告公司或新兴成长型公司。关于“大型加速评估提交人”、“加速评估提交人”、“小型报告公司”和“新兴成长型公司”的定义，请参见《交易所法规》第12亿.2条。

 

大型加速报告人

☒

加速文件提交人

☐

 

 

 

 

 

 

 

非加速文件提交人

☐

较小的报告公司

☐

 

 

 

 

 

 

 

 

 

 

 

新兴成长公司

 

☐

 

如果是新兴成长型公司，在选中复选标记的同时，如果公司已选择不使用根据证券交易法第13(a)条提供的任何新的或修订后的财务会计准则的延长过渡期来符合新的或修订后的财务会计准则，则表明该公司已选择不使用根据证券交易法第13(a)条提供的任何新的或修订后的财务会计准则的延长过渡期来符合新的或修订后的财务会计准则。☐

请在选框内打勾，指明注册商是否为交易所法规120.2中定义的空壳公司。 是 ☐ 否☒

截至2024年11月4日，注册人普通股的流通股份数量为 379,764,211 股份。

 

 

 

 

百胜中国控股有限公司

指数

 

 

 

 

不。

 

 

 

第一部分

财务信息

 

 

 

 

 

项目1 - 基本报表

3

 

 

 

 

截至2024年9月30日和2023年的按季度和年度合并利润简明财务报表（未经审计）

3

 

 

 

 

截至2024年9月30日和2023年的按季度和年度合并综合利润简明财务报表（未经审计）

4

 

 

 

 

截至2024年9月30日和2023年的按年度合并现金流量简明财务报表（未经审计）

5

 

 

 

 

控件合并资产负债表–2024年9月30日（未经审计）和2023年12月31日

6

 

 

 

 

控件合并股东权益报表–截至2024年9月30日和2023年（未经审计）的季度和年度

7

 

 

 

 

未经审计的简明合并财务报表注释

9

 

 

 

 

项目2-管理层对财务状况和业绩的讨论与分析

25

 

 

 

 

项目3 - 关于市场风险的定量和定性披露

43

 

 

 

 

第4项-控件和程序

43

 

 

 

第二部分

其他信息

 

 

 

 

 

项目1 — 法律诉讼

44

 

 

 

 

项目1A - 风险因素

44

 

 

 

 

第2条 - 未注册的股本证券销售和使用的收益

44

 

 

 

 

第5项-其他信息

44

 

 

 

 

第六项-展品

45

 

 

 

 

签名

46

 

 

 

第一部分 – 财务资讯AL资讯

 

项目 1. 财财务报表

 

综合损益汇总状态表收入数据（未经审核）

发展中国控股有限公司。

(以百万美元为单位，除每股数据外)

 

 

 

季度结束

 

 

截至年底日期

 

收益

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

公司销售额

 

$

2,895

 

 

$

2,759

 

 

$

8,217

 

 

$

8,048

 

特许费和收入

 

 

25

 

 

 

23

 

 

 

72

 

 

 

69

 

来自特许经营者交易的收入

 

 

116

 

 

 

100

 

 

 

319

 

 

 

282

 

其他收入

 

 

35

 

 

 

32

 

 

 

100

 

 

 

86

 

总收益

 

 

3,071

 

 

 

2,914

 

 

 

8,708

 

 

 

8,485

 

成本及费用，净额

 

 

 

 

 

 

 

 

 

 

 

 

公司餐厅

 

 

 

 

 

 

 

 

 

 

 

 

食品和纸张

 

 

918

 

 

 

858

 

 

 

2,611

 

 

 

2,466

 

薪资和员工福利

 

 

728

 

 

 

699

 

 

 

2,102

 

 

 

2,047

 

租金和其他营业费用

 

 

755

 

 

 

732

 

 

 

2,126

 

 

 

2,098

 

公司餐厅费用

 

 

2,401

 

 

 

2,289

 

 

 

6,839

 

 

 

6,611

 

总部及行政费用

 

 

139

 

 

 

169

 

 

 

412

 

 

 

485

 

特许经营费用

 

 

10

 

 

 

9

 

 

 

29

 

 

 

28

 

与特许经营者交易的费用

 

 

110

 

 

 

95

 

 

 

306

 

 

 

270

 

其他营运成本和费用

 

 

32

 

 

 

29

 

 

 

90

 

 

 

77

 

结业和减值费用，净额

 

 

8

 

 

 

—

 

 

 

22

 

 

 

17

 

其他（收入）支出，净额

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

1

 

总成本和支出，净额

 

 

2,700

 

 

 

2,591

 

 

 

7,697

 

 

 

7,489

 

营业利润

 

 

371

 

 

 

323

 

 

 

1,011

 

 

 

996

 

利息收益，净额

 

 

31

 

 

 

46

 

 

 

100

 

 

 

124

 

投资收益（亏损）

 

 

34

 

 

 

(4

)

 

 

50

 

 

 

(32

)

营业税前收入及股权中之收入（亏损）
股权法之投资带来的净收益（亏损）

 

 

436

 

 

 

365

 

 

 

1,161

 

 

 

1,088

 

所得税负担

 

 

(119

)

 

 

(100

)

 

 

(309

)

 

 

(296

)

股权法之投资带来的净收益（亏损）的权益

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

净利润，包括非控制权益

 

 

319

 

 

 

267

 

 

 

854

 

 

 

794

 

净利润，非控制权益

 

 

22

 

 

 

23

 

 

 

58

 

 

 

64

 

净收益 - 百胜中国控股有限公司

 

$

297

 

 

$

244

 

 

$

796

 

 

$

730

 

权重平均流通在外普通股（百万）：

 

 

 

 

 

 

 

 

 

 

 

 

基础

 

 

384

 

 

 

416

 

 

 

391

 

 

 

417

 

稀释

 

 

385

 

 

 

420

 

 

 

393

 

 

 

421

 

普通股每股基本盈利

 

$

0.77

 

 

$

0.59

 

 

$

2.04

 

 

$

1.75

 

每普通股稀释盈利

 

$

0.77

 

 

$

0.58

 

 

$

2.03

 

 

$

1.73

 

 

见附带的基本报表附注。

 

3

综合收益简明综合财务报表未经审核的综合收益简明综合财务报表

发展中国控股有限公司。

（以百万美元为单位）

 

 

 

季度结束

 

 

截止本年止

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

净利润-包括非控制利益

 

$

319

 

 

$

267

 

 

$

854

 

 

$

794

 

其他综合收益（净额，税后零）：

 

 

 

 

 

 

 

 

 

 

 

 

外汇转换调整

 

 

167

 

 

 

(29

)

 

 

56

 

 

 

(274

)

综合收益-包括非控制利益

 

 

486

 

 

 

238

 

 

 

910

 

 

 

520

 

综合收益-非控制利益

 

 

42

 

 

 

20

 

 

 

64

 

 

 

29

 

综合收益-Yum China Holdings，Inc。

 

$

444

 

 

$

218

 

 

$

846

 

 

$

491

 

 

见附带的基本报表附注。

 

4

综合综合损益及损益表（未经审计）现金流量表附注（未经审核）

发展中国控股有限公司。

（以百万美元为单位）

 

 

 

截至本年结束

 

 

9/30/2024

 

9/30/2023

现金流量 - 营运活动

 

 

 

 

 

 

 

 

净利润 - 包括非控制权益

 

$

854

 

 

 

$

794

 

 

折旧费及摊销

 

 

355

 

 

 

 

339

 

非现金经营租赁成本

 

 

305

 

 

 

 

301

 

 

关闭和减损费用

 

 

22

 

 

 

 

17

 

 

投资 (损益)

 

 

(50

)

 

 

 

32

 

 

对关联企业投资的股权投资净（收入）损失

 

 

(2

)

 

 

 

(2

)

 

从股权法投资收到的收入分配

 

 

7

 

 

 

 

8

 

 

递延所得税

 

 

(4

)

 

 

 

(6

)

 

以股份为基础的薪酬费用

 

 

32

 

 

 

 

46

 

 

应收账款变动

 

 

(4

)

 

 

 

(2

)

 

存货变动

 

 

69

 

 

 

 

(25

)

 

预付款、其他流动资产及增值税资产变动

 

 

3

 

 

 

 

(10

)

 

应付账款及其他流动负债变动

 

 

(83

)

 

 

 

112

 

 

应交所得税变动

 

 

67

 

 

 

 

71

 

 

非当前营运租赁负债变动

 

 

(303

)

 

 

 

(295

)

 

其他，净额

 

 

(16

)

 

 

 

(46

)

 

营运活动提供的净现金

 

 

1,252

 

 

 

 

1,334

 

 

现金流量 - 投资活动

 

 

 

 

 

 

 

 

资本支出

 

 

(523

)

 

 

 

(499

)

 

购买短期投资、长期银行存款及票据

 

 

(3,330

)

 

 

 

(3,287

)

 

短期投资、长期银行存款及票据到期

 

 

3,821

 

 

 

 

2,730

 

 

其他，净额

 

 

4

 

 

 

 

4

 

 

投资活动使用的净现金

 

 

(28

)

 

 

 

(1,052

)

 

现金流量-融资活动

 

 

 

 

 

 

 

 

来自短期借款的款项

 

 

307

 

 

 

 

212

 

 

偿还短期借款

 

 

(167

)

 

 

 

—

 

 

买回普通股股份

 

 

(1,057

)

 

 

 

(280

)

 

普通股股息支付

 

 

(187

)

 

 

 

(162

)

 

支付非控制权益的股息

 

 

(36

)

 

 

 

(37

)

 

来自非控制权益的出资

 

 

—

 

 

 

 

35

 

 

购收相关按留款付款

 

 

—

 

 

 

 

(3

)

 

其他，净额

 

 

(19

)

 

 

 

(5

)

 

筹资活动中使用的净现金

 

 

(1,159

)

 

 

 

(240

)

 

汇率对现金、现金等价物和受限现金的影响

 

 

—

 

 

 

 

(41

)

 

现金、现金等价物和受限现金净增加额

 

 

65

 

 

 

 

1

 

 

期初的现金、现金等价物和受限现金

 

 

1,128

 

 

 

 

1,130

 

 

期末的现金、现金等价物和受限现金

 

$

1,193

 

 

 

$

1,131

 

 

 

补充现金流量资料

 

 

 

 

 

 

 

支付之所得税金额

 

 

263

 

 

 

245

 

 

支付利息的现金

 

 

4

 

 

 

3

 

 

非现金投资和融资活动

 

 

 

 

 

 

 

资本支出包含应付帐款及其他流动负债项目

 

 

167

 

 

 

180

 

 

 

见附带的基本报表附注。

5

精简 所有板块综合账表

发展中国控股有限公司。

（以百万美元为单位）

 

 

 

9/30/2024

 

 

12/31/2023

 

 

 

(未经查核)

 

 

 

 

资产

 

 

 

 

 

 

流动资产

 

 

 

 

 

 

现金及现金等价物

 

$

1,193

 

 

$

1,128

 

短期投资

 

 

1,338

 

 

 

1,472

 

应收帐款净额

 

 

79

 

 

 

68

 

存货净值

 

 

359

 

 

 

424

 

预付费用及其他流动资产

 

 

348

 

 

 

339

 

所有流动资产总额

 

 

3,317

 

 

 

3,431

 

不动产、厂房及设备净值

 

 

2,431

 

 

 

2,310

 

营运租赁权使用资产

 

 

2,215

 

 

 

2,217

 

商誉

 

 

1,955

 

 

 

1,932

 

无形资产，扣除累计摊销

 

 

150

 

 

 

150

 

长期银行存款和票据

 

 

933

 

 

 

1,265

 

股权投资

 

 

388

 

 

 

332

 

透过权益法之投资

 

 

145

 

 

 

129

 

其他资产

 

 

267

 

 

 

265

 

总资产

 

 

11,801

 

 

 

12,031

 

 

 

 

 

 

 

 

负债，可赎回非控制权益和权益

 

 

 

 

 

 

流动负债

 

 

 

 

 

 

应付账款及其他流动负债

 

 

2,103

 

 

 

2,164

 

短期借款

 

 

315

 

 

 

168

 

应纳所得税款

 

 

160

 

 

 

90

 

全部流动负债

 

 

2,578

 

 

 

2,422

 

非流动经营租赁负债

 

 

1,880

 

 

 

1,899

 

非流动融资租赁负债

 

 

51

 

 

 

44

 

递延所得税负债

 

 

406

 

 

 

390

 

其他负债

 

 

158

 

 

 

157

 

总负债

 

 

5,073

 

 

 

4,912

 

 

 

 

 

 

 

 

可赎回的非控制权益

 

 

13

 

 

 

13

 

 

 

 

 

 

 

 

股权

 

 

 

 

 

 

0.010.01票面价值； 1,000授权的股票数量为百万 382百万股
      and 407 million shares issued at September 30, 2024 and December 31, 2023, respectively;
      381截至2024年7月31日和2023年7月31日，已发行的限制股奖励为百万股和百万股，但因为对稀释的收益每股不利，所以没有计入稀释每股收益的计算中。 407 million shares outstanding at September 30, 2024 and
      December 31, 2023, respectively.

 

 

4

 

 

 

4

 

库藏股

 

 

(18

)

 

 

—

 

资本公积额额外增资

 

 

4,053

 

 

 

4,320

 

保留收益

 

 

2,156

 

 

 

2,310

 

累积其他全面损失

 

 

(179

)

 

 

(229

)

合计中国百胜控股有限公司股东权益

 

 

6,016

 

 

 

6,405

 

非控制权益

 

 

699

 

 

 

701

 

股东权益总额

 

 

6,715

 

 

 

7,106

 

总负债、可赎回的非控制权益和股权

 

$

11,801

 

 

$

12,031

 

 

 

 

 

 

 

 

 

见附带的基本报表附注。

 

 

 

6

缩编合并 权益报表（未经审计）

发展中国控股有限公司。

（以百万美元为单位）

 

 

 

发展中国控股有限公司。

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

累计

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common

 

 

额外的

 

 

 

 

 

其他

 

 

 

 

 

 

 

 

 

 

 

 

 

 

可赎回的

 

 

 

股票

 

 

实收资本

 

 

保留收益

 

 

综合

 

 

库藏股

 

 

非控制权益

 

 

总计

 

 

非控制权益

 

 

 

分享*

 

 

金额

 

 

资本

 

 

累积盈余

 

 

亏损

 

 

股份

 

 

金额

 

 

权益投资

 

 

股权

 

 

利息

 

2024年6月30日余额

 

 

387

 

 

$

4

 

 

$

4,103

 

 

$

2,048

 

 

$

(326

)

 

 

(1

)

 

$

(17

)

 

$

657

 

 

$

6,469

 

 

$

13

 

净利润

 

 

 

 

 

 

 

 

 

 

 

297

 

 

 

 

 

 

 

 

 

 

 

 

22

 

 

 

319

 

 

 

—

 

外汇转换调整

 

 

 

 

 

 

 

 

 

 

 

 

 

147

 

 

 

 

 

 

 

 

 

20

 

 

 

167

 

 

 

—

 

综合收益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

486

 

 

 

—

 

现金分红宣布
   ($0.16 每普通股份)

 

 

 

 

 

 

 

 

 

 

 

(61

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(61

)

 

 

 

分派给/贡献来自
非控制股权

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

—

 

 

 

 

回购和养老

 

 

(6

)

 

 

—

 

 

 

(59

)

 

 

(128

)

 

 

 

 

 

—

 

 

 

(1

)

 

 

 

 

 

(188

)

 

 

 

行使和授予基于股份的奖励

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

基于股份的报酬

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

9

 

 

 

 

2024年9月30日结余

 

 

382

 

 

$

4

 

 

$

4,053

 

 

$

2,156

 

 

$

(179

)

 

 

(1

)

 

$

(18

)

 

$

699

 

 

$

6,715

 

 

$

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023年6月30日结余

 

 

417

 

 

$

4

 

 

$

4,396

 

 

$

2,465

 

 

$

(316

)

 

 

—

 

 

$

—

 

 

$

656

 

 

$

7,205

 

 

$

12

 

净利润

 

 

 

 

 

 

 

 

 

 

 

244

 

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

267

 

 

 

1

 

外汇转换调整

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25

)

 

 

 

 

 

 

 

 

(4

)

 

 

(29

)

 

 

—

 

综合收益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

238

 

 

 

1

 

现金分红宣告
   ($0.13 每股普通股份)

 

 

 

 

 

 

 

 

 

 

 

(54

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(54

)

 

 

 

分配给/贡献来自 非控股权益
非控股权益的分配

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

—

 

 

 

 

回购和 养老 股份

 

 

(3

)

 

 

—

 

 

 

(31

)

 

 

(129

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(160

)

 

 

 

行使和奖励基于股份的股票

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

基于股份的报酬

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

17

 

 

 

 

截至2023年9月30日的结余

 

 

415

 

 

$

4

 

 

$

4,382

 

 

$

2,526

 

 

$

(341

)

 

 

—

 

 

$

—

 

 

$

675

 

 

$

7,246

 

 

$

13

 

 

7

 

 

永中国控股股份有限公司

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

累积

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

常见

 

 

额外

 

 

 

 

 

其他

 

 

 

 

 

 

 

 

 

 

 

 

 

 

可兑换

 

 

 

股票

 

 

已付款

 

 

保留

 

 

综合

 

 

库务股票

 

 

非控制

 

 

总计

 

 

非控制

 

 

 

股份 *

 

 

金额

 

 

资本

 

 

收入

 

 

损失

 

 

股票

 

 

金额

 

 

兴趣

 

 

股票

 

 

利息

 

二零二三年十二月三十一日结余

 

 

407

 

 

$

4

 

 

$

4,320

 

 

$

2,310

 

 

$

(229

)

 

 

—

 

 

$

—

 

 

$

701

 

 

$

7,106

 

 

$

13

 

净收入

 

 

 

 

 

 

 

 

 

 

 

796

 

 

 

 

 

 

 

 

 

 

 

 

58

 

 

 

854

 

 

 

—

 

外币转换调整

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

 

 

 

 

 

 

6

 

 

 

56

 

 

 

—

 

综合收益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

910

 

 

 

—

 

现金股息申报
($)0.48每股普通股）

 

 

 

 

 

 

 

 

 

 

 

(187

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(187

)

 

 

 

向 ／ 供款
非控制权益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(66

)

 

 

(66

)

 

 

 

购回及退还股份

 

 

(27

)

 

 

—

 

 

 

(284

)

 

 

(763

)

 

 

 

 

 

(1

)

 

 

(18

)

 

 

 

 

 

(1,065

)

 

 

 

行使及授权以股份为基础的奖励

 

 

1

 

 

 

—

 

 

 

(15

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15

)

 

 

 

基于股份的赔偿

 

 

 

 

 

 

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

32

 

 

 

 

二零二四年九月三十日止余额

 

 

382

 

 

$

4

 

 

$

4,053

 

 

$

2,156

 

 

$

(179

)

 

 

(1

)

 

$

(18

)

 

$

699

 

 

$

6,715

 

 

$

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

二零二二年十二月三十一日结余

 

 

419

 

 

$

4

 

 

$

4,390

 

 

$

2,191

 

 

$

(103

)

 

 

—

 

 

$

—

 

 

$

666

 

 

$

7,148

 

 

$

12

 

净收入

 

 

 

 

 

 

 

 

 

 

 

730

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

794

 

 

 

1

 

外币转换调整

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(238

)

 

 

 

 

 

 

 

 

(36

)

 

 

(274

)

 

 

—

 

综合收益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

520

 

 

 

1

 

现金股息申报
($)0.39每股普通股）

 

 

 

 

 

 

 

 

 

 

 

(162

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(162

)

 

 

 

向 ／ 供款
非控制权益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

(19

)

 

 

 

购回及退还股份

 

 

(5

)

 

 

—

 

 

 

(52

)

 

 

(233

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(285

)

 

 

 

行使及授权以股份为基础的奖励

 

 

1

 

 

 

—

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

基于股份的赔偿

 

 

 

 

 

 

 

 

46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

46

 

 

 

 

二零二三年九月三十日止余额

 

 

415

 

 

$

4

 

 

$

4,382

 

 

$

2,526

 

 

$

(341

)

 

 

—

 

 

$

—

 

 

$

675

 

 

$

7,246

 

 

$

13

 

 

*: 由于四舍五入，股份可能不会增加。

 

见附带的基本报表附注。

 

 

 

 

8

简明合并基本报表附注未经审核的财务报表附注

(以美元百万为单位，除非另有注明)

 

附注1 - 业务描述

 

百胜中国控股有限公司（“百胜中国”及其附属公司合称为“本公司”，“我们”，“我们”，“我们”）成立于2016年4月1日 特拉华州 ，但大于第 2016年4月1日.

 

该公司拥有、特许经营或拥有经营餐厅（也称为“商店”或“单位”），采用肯德基、必胜客、Lavazza、皇鸡皇、小肥羊和 Taco Bell 概念（总称“概念板块”）。 2016年公司与其前母公司百胜品牌公司（Yum! Brands, Inc.，“百胜”）分拆时，本公司的全资间接子公司百胜餐饮顾问（上海）有限公司（“YCCL”）与百胜餐饮国际有限公司（YRI China Franchising LLC），通过另一家百胜具资公司百胜餐饮亚洲私人有限公司（Yum! Restaurants Asia Pte. Ltd.），从2016年10月31日至2019年12月31日，为购买百胜和必胜客品牌在中华人民共和国（“中国”或“中国”）餐馆服务的专有权的使用和许可使用与转授权百胜及其附属公司拥有的知识产权，向公司提供盈利性授权。 除了香港、澳门和台湾。 该许可的期限是自2016年10月31日开始，用于KFC和必胜客品牌，并在达到特定约定里程碑的情况下， 50年 用于达到一定的约定里程碑， 50 年 自2022年4月15日起，Taco Bell品牌的特许经营权为期可自动续期为每次 50 年，条件是我们保持良好地位，除非通知不续期。作为交换，我们向Yum支付一定比例的许可费，以及 3我们公司和特许经营餐厅的净系统销售额的百分之

 

全球主要餐厅品牌KFC在1987年首次进入中国。截至2024年9月30日，中国共有 11,283 家KFC分店。我们拥有黄记皇和小肥羊的知识产权，不需支付与这些概念相关的许可费。 58%, 70%, 83%, 92我们持有纽交所的控制利益，分别在上海、北京、无锡、苏州和杭州的KFC所在公司和经营公司中持有约百分之 60和百分之

中国第一家必胜客餐厅于1990年开业。截至2024年9月30日，中国有 3,606 家必胜客餐厅。

 

在2020年第二季度，公司与意大利著名家族企业Lavazza Group合作，成立了一家合资企业（“Lavazza joint venture”），旨在在中国探索和发展Lavazza咖啡概念。Lavazza joint venture经营咖啡店业务和零售业务。我们持有Lavazza joint venture的控制权，持有 65%的股权。

 

公司于2017年收购了中国线上外卖服务提供商DAOJIA.com.cn（“Daojia”）的控股权。这项业务也扩展到包括管理餐厅的外卖服务团队，包括我们体系内的餐厅在内，其业绩归入我们的外卖概念业务控制项。

我们运营一个零售品牌Shaofaner，通过线上和线下渠道销售包装食品，直至2024年8月。Shaofaner的营运业绩纳入我们的电子商务业务控制项。

公司有 两个 reportable segments: KFC and Pizza Hut. Our non-reportable operating segments, including the operations of Lavazza, Huang Ji Huang, Little Sheep and Taco Bell, our delivery operating segment and our e-commerce business, are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate. Additional details on our segment reporting are included in Note 13.

 

The Company’s common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “YUMC.” On September 10, 2020, the Company completed a secondary listing of its common stock on the Main Board of the Hong Kong Stock Exchange (“HKEX”) under the stock code “9987,” in connection with a global offering of 41,910,700 shares of its common stock. Net proceeds raised by the Company from the global offering after deducting underwriting fees and the offering expenses amounted to $2.2 billion. On October 24, 2022, the Company’s voluntary conversion of its secondary listing status to a primary listing status on the HKEX became effective (“Primary Conversion”) and the Company became a dual primary listed company on the NYSE and HKEX. On the same day, the Company’s shares of common stock traded on the HKEX were included in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. The Company’s common stock listed on the NYSE and HKEX continue to be fully fungible.

 

 

附注2 - 表示基础

 

我们编制的附带的简明合并财务报表符合美国通用会计准则（“GAAP”），这需要我们作出影响资产负债表报告金额、资产和负债的披露在财务报表日、以及报告期间内收入和支出金额的估计和假设。实际结果可能会有所不同。

9

 

根据证券交易委员会（“SEC”）的规则和法规，我们已按照中期财务信息的要求编制了简明综合财务报表。因此，这些报表不包含所有通过GAAP所需的完整财务报表所需的所有信息和脚注。简明综合财务报表包括一切为准确展示我们截至2024年9月30日的财务状况和战营业绩、全面收入、截至2024年9月30日和2023年的第几季和年度的权益报表以及截至2024年9月30日和2023年的全年现金流量所需的一切正常和经常性调整。我们对这些中期时期的营运业绩、全面收入和现金流量的结果未必能反映全年预期的结果。这些陈述应与公司年度报告中包括的合并财务报表和附注一起阅读，该报告已于2024年2月29日提交给SEC。

 

通过收购Daojia，公司也收购了一个变量利益实体（“VIE”）和Daojia实际控制的VIE的子公司。由于某些独家协议要求Daojia合并其VIE和VIE的子公司，所以Daojia与其VIE之间存在母子公司关系，因为Daojia是最重要的主要受益人，具有指导最重要经济活动的权力，并有权获得几乎所有利润，同时也有责任承担预期损失的所有VIE。收购的VIE及其子公司在单独和整体上均被视为不重要。自收购之日起，Daojia的营运业绩已纳入公司的简明综合财务报表。

 

最近采纳的会计准则

2023年3月，FASB发布了ASU 2023-01。 租赁（主题842）-普通控制安排（“ASU 2023-01”）。要求所有承租方，包括上市公司，应按照耐用寿命摊销与普通控制租赁相关的租赁改良，并在承租方不再控制基础资产使用时，将其视为普通控制实体之间的资产转移，通过对资本进行调整来核算。ASU 2023-01对该公司自2024年1月1日生效，并允许提前采纳。我们于2024年1月1日采用了该标准，该采用对我们的基本财务报表没有实质影响。 在2023年1月，FASB发布了ASU 2023-01。

 

附注 3 – 业务收购和股权投资

 

杭州肯德基的合并与对杭州餐饮的股权投资

 

在2021年第四季度，本公司完成对杭州餐饮的股权投资 28％的股权，金额为$255 百万美元。杭州餐饮持有杭州肯德基的 45％股权，该公司先前持有 47％股权。除了这笔投资，本公司还获得了杭州肯德基董事会的两个额外席位。交易完成后，本公司直接和间接持有杭州肯德基约 60％的股权，并在董事会上占多数席位，因此取得了对杭州肯德基的控制，并开始从收购日开始整合其业绩。

 

除了对杭州肯德基(KFC)的股权投资外，杭州餐饮经营著中华餐饮餐厅，有四个传统品牌，以及一个食品加工业务。公司采用权益法核算处理 28对杭州餐饮除杭州肯德基业务外的%股权进行了记录并按照当时的公允价值记录了这一投资在权益投资中。公司选择以一季度延迟报告其对杭州餐饮业务的业绩，因为其业绩无法及时为公司在当期记录。公司’对杭州餐饮的权益收益（损失）税后，在截至2024年9月30日和2023年9月30日的两个季度以及截至2024年9月30日和2023年9月30日的两年的数字中，均微不足道，包括在我们的综合损益表中的权益法下投资的损益中。截至2024年9月30日和2023年12月31日，公司对杭州餐饮的权益法投资的帐面金额分别为$46 百万美元和41 百万，分别超过公司对杭州餐饮底层净资产的利益$24 百万美元和24 百万，这种差异中绝大部分归因于其自有物业和相关的延迟税负影响，根据收购时确定的加权平均剩余寿命进行折旧 20年.

 

截至2024年9月30日和2023年结束的两个季度以及截至2024年9月30日和2023年结束的两年间，从杭州餐饮的采购金额均不重要。公司截至2024年9月30日和2023年12月31日因杭州餐饮而产生的应付帐款和其他流动负债均不重要。

 

10

福建盛农发展有限公司（“盛能”）投资

 

2021年第一季度，公司收购了一家 5深圳证券交易所上市公司Sunner的股权百分比。Sunner是中国最大的白羽鸡生产商，也是该公司最大的家禽供应商。2021 年 5 月，经桑纳股东批准，公司的一名高级管理人员被提名并被任命为桑纳董事会成员。通过这种陈述，公司参与了Sunner的政策制定过程。董事会中的代表性，加上公司是桑纳的重要股东之一，使公司能够对桑纳的运营和财务政策施加重大影响。因此，公司于2021年5月开始根据当时的公允价值对投资采用权益会计法。该公司选择在Sunner财务业绩中所占的份额延迟了四分之一，因为Sunner的业绩无法及时公布，因此公司无法在同期内记录这些业绩。在截至2024年9月30日和2023年9月30日的季度和年度中，公司扣除税款后，来自Sunner的股权收益（亏损）并不重要，已包含在我们的简明合并收益表中权益法投资的净收益（亏损）中的权益（亏损）中。

 

该公司购买了美元的库存119 百万和美元136 截至2024年9月30日和2023年9月30日的季度分别来自森纳的百万美元，以及美元366 百万和美元392 截至2024年9月30日和2023年9月30日的年度迄今为止的年份分别为百万美元。该公司应付账款和应付Sunner的其他流动负债为美元53 百万和美元51 截至 2024 年 9 月 30 日和 2023 年 12 月 31 日，分别为百万人。

 

截至2024年9月30日和2023年12月31日，公司对森纳投资的账面金额均为美元225 百万，比公司在Sunner标的净资产中的权益高出美元153 百万和美元152 分别为百万。截至 2024 年 9 月 30 日和 2023 年 12 月 31 日，美元16 百万和美元16 这些基差中有100万美元分别与收购时确定的有限寿命无形资产有关，这些资产将在估计的使用寿命内摊销 20 年了。其余差异与商誉和无限期无形资产有关，这些资产不受摊销，以及递延所得税负债的影响。截至2024年9月30日和2023年12月31日，公司对Sunner投资的市值为美元123 百万和美元151 分别按其报价收盘价计算，百万美元。

 

美团点评（“美团”）投资

 

在2018年第三季度，公司认购了 8.4 百万，或小于 1％，中国交付聚合商美团普通股，总对价约为美元74 百万，当时该公司于2018年9月在香港交易所启动首次公开募股。在2020年第二季度，公司出售了 4.2 美团的百万股普通股。

 

公司按公允价值对股票证券进行入账，随后的公允价值变动记录在我们的简明合并收益表中。投资美团的公允价值是根据每个报告期末股票的收盘市场价格确定的。如果截至报告期末美团股票的收盘市价高于我们的成本，则公允价值变动需缴纳美国税。

 

pre-ta 摘要x 已确认的美团股权证券投资收益或亏损包含在我们简明合并收益表的投资收益（亏损）中，如下所示：

 

 

 

季度结束

 

 

年初至今已结束

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

仍持有的股票证券上记录的未实现收益（亏损）
截至期末

 

$

33

 

 

$

(4

)

 

$

49

 

 

$

(33

)

 

 

 

注4-收入确认

 

公司的营业收入包括公司销售、特许经营费和收入、与特许经营者交易的营业收入，以及其他营业收入。

 

公司销售

 

来自公司自营餐厅的营业收入在客户获得食品并付款时确认，此时我们的履约义务得到满足。公司以扣除与销售相关的税费后的销售额进行展示。我们还通过自己的移动应用程序和第三方聚合平台为客户提供送餐服务。我们主要使用专门的骑手送达订单，并在特定地点使用平台骑手。当订单由我们的专门骑手或平台骑手完成时，我们控制并判断送餐服务的价格，通常在客户获取食品时确认包括送餐费在内的营业收入。当订单由第三方聚合商的送餐员工完成，且他们控制和判断送餐服务的价格时，我们在食品控制权转移给第三方聚合商的送餐员工时确认营业收入，但不包括送餐费。这些销售的付款条款为短期性质。

 

11

我们会在客户兑换的预付储值产品（包括礼品卡和产品优惠券）所得的收入。在任何给定时间出售的预付礼品卡通常会在下一次过期 36 数月，产品优惠券通常会在最多的期间内到期 12 几个月。我们承认破损收入，即不预计兑换的预付储值产品数量，如 (1) 在公司预期有权获得破损金额的情况下，在公司预计有权获得破损金额的情况下，或 (2) 在公司不预期有权破损的情况下，在没有要求将未领取的财产部分发放给政府机构的余额，否则公司不希望有权破损的情况下，否则不需要向政府机构发放的余额法律。本公司根据有关赎回和到期模式的最新可用信息，至少每年检讨其破损预估。

 

我们的特权会员计划为会员提供多种优惠的权利，例如免费送货和特定产品的折扣。对于某些特权会员计划，提供预先定义数量的福利，可在会员期间可以有关税率兑换，收入会根据时间过去的计算方式计算。就会员优惠计划提供多种不同的优惠，包括迎新礼物和预先定义数量的各种折扣券，所收取的代价会根据其相对独立销售价格分配给所提供的福利，而收入会员在交付食品或服务或优惠到期时会计入收入。在确定福利的相对独立售价时，本公司会根据历史赎回模式考虑未来赎回的可能性，并根据有关赎回和到期模式的最新可用资料定期审查该等估计。

 

特许经营费用和收入

 

特许经营费和收入主要包括前期特许经营费用，例如初始费用和续费，以及持续费。我们确定我们提供的服务以换取前期特许经营费用和持续费用与特许经营权相关。我们将从特许经营商收到的预先特许经营费用视为特许经营协议或续订协议期内的收入，因为特许经营权被视为存取我们象征性知识产权的权利。特许经营协议的条款一般是 10 一般来说，肯德基和披萨小屋的年份 五年 适用于小羊和 三 至 10 对于黄吉黄有多年。我们承认持续费用，这些费用以特许经营商销售的百分比为基础，因此出现这些销售情况。

 

与特许经营商交易所得的收入

 

与特许经营商交易所得的收入主要包括食品和纸品的销售、广告服务、送货服务和向特许经营商提供的其他服务。

 

本公司主要向我们所有餐厅（包括特许经营商）从供应商中心购买所有食品和纸品，然后将其出售并交付给餐厅。此外，该公司为其中式餐饮业部门拥有调味设施，该部门为黄吉黄和小羊特许经营商生产和销售调味品。本公司还为特许经营商提供送货服务。因此类交易所产生的履行义务被视为与特许经营协议不相同，因为该等特许经营协议并非高度依赖，而客户可以自行从该等服务中受益。我们将自己视为本安排中的主要人，因为我们能够在将该商品或服务转让给特许经营者之前控制承诺的商品或服务。收入在转移对订购物品或服务的控制权时，通常是在交付给特许经营者时记录。

 

对于广告服务，本公司通常会聘请第三方提供服务，并根据我们的特许经营协议的条文来定义服务性质以及管理和指导所有营销和广告计划的责任，以及作为交易中的主要人。本公司收集广告贡献，通常基于我们所有餐厅（包括特许经营商）的某些销售百分比。为特许经营者提供的其他服务主要包括客户和技术支持服务。广告服务和提供的其他服务与特许经营权相关，并且不被视为个别分开。当相关销售发生时，我们会记录收入。

 

其他收入

其他收入主要包括 i) 通过电子商务渠道向客户销售产品、Lavazza 咖啡店以外的 Lavazza 咖啡零售产品销售，以及我们的调味品产品销售给分销商，以及 ii) 通过我们的供应链网络向第三方提供的物流和仓储服务的收入。我们的部分披露还包括与我们公司拥有的餐厅提供的送货服务有关的收入，因此为合并目的而被删除。

当对承诺产品或服务的控制权转让给客户时，其他收入会以反映我们预期为该等产品或服务收取的代价而获得的代价。

12

 

Loyalty Programs

 

Each of the Company’s KFC and Pizza Hut reportable segments operates a loyalty program that allows registered members to earn points for each qualifying purchase. Points, which generally expire 18 months after being earned, may be redeemed for future purchases of KFC or Pizza Hut branded products or other products for free or at a discounted price. Points cannot be redeemed or exchanged for cash. The estimated value of points earned by the loyalty program members is recorded as a reduction of revenue at the time the points are earned, based on the percentage of points that are projected to be redeemed, with a corresponding deferred revenue liability included in Accounts payable and other current liabilities in the Condensed Consolidated Balance Sheets and subsequently recognized into revenue when the points are redeemed or expire. The Company estimates the value of the future redemption obligations based on the estimated value of the product for which points are expected to be redeemed and historical redemption patterns and reviews such estimates periodically based upon the latest available information regarding redemption and expiration patterns.

 

营业收入的分解

 

The following tables present revenue disaggregated by types of arrangements and segments:

 

 

 

Quarter Ended 9/30/2024

 

收益

 

肯德基

 

 

必胜客

 

 

所有板块 (其他)
业务分部

 

 

企业及未分配

 

 

合并

 

 

消除

 

 

合并

 

公司销售额

 

$

2,276

 

 

$

606

 

 

$

13

 

 

$

—

 

 

$

2,895

 

 

$

—

 

 

$

2,895

 

特许费和收入

 

 

19

 

 

 

2

 

 

 

4

 

 

 

—

 

 

 

25

 

 

 

—

 

 

 

25

 

交易收入
与加盟商的交易

 

 

15

 

 

 

2

 

 

 

19

 

 

 

80

 

 

 

116

 

 

 

—

 

 

 

116

 

其他收入

 

 

1

 

 

 

5

 

 

 

176

 

 

 

17

 

 

 

199

 

 

 

(164

)

 

 

35

 

总收益

 

$

2,311

 

 

$

615

 

 

$

212

 

 

$

97

 

 

$

3,235

 

 

$

(164

)

 

$

3,071

 

 

 

 

截至2023年9月30日的季度

 

收益

 

肯德基

 

 

必胜客

 

 

所有板块 (其他)
业务分部

 

 

企业及未分配

 

 

合并

 

 

消除

 

 

合并

 

公司销售额

 

$

2,154

 

 

$

591

 

 

$

14

 

 

$

—

 

 

$

2,759

 

 

$

—

 

 

$

2,759

 

特许费和收入

 

 

16

 

 

 

2

 

 

 

5

 

 

 

—

 

 

 

23

 

 

 

—

 

 

 

23

 

交易收入
与特许经营者进行的交易

 

 

12

 

 

 

1

 

 

 

20

 

 

 

67

 

 

 

100

 

 

 

—

 

 

 

100

 

其他收入

 

 

4

 

 

 

5

 

 

 

162

 

 

 

12

 

 

 

183

 

 

 

(151

)

 

 

32

 

总收益

 

$

2,186

 

 

$

599

 

 

$

201

 

 

$

79

 

 

$

3,065

 

 

$

(151

)

 

$

2,914

 

 

 

 

截至2024年9月30日止年度

 

收益

 

肯德基

 

 

必胜客

 

 

所有板块 (其他)
业务分部

 

 

企业及未分配

 

 

合并

 

 

消除

 

 

合并

 

公司销售额

 

$

6,452

 

 

$

1,723

 

 

$

42

 

 

$

—

 

 

$

8,217

 

 

$

—

 

 

$

8,217

 

特许费和收入

 

 

53

 

 

 

6

 

 

 

13

 

 

 

—

 

 

 

72

 

 

 

—

 

 

 

72

 

交易收入
与加盟商进行的交易

 

 

41

 

 

 

4

 

 

 

55

 

 

 

219

 

 

 

319

 

 

 

—

 

 

 

319

 

其他收入

 

 

9

 

 

 

17

 

 

 

484

 

 

 

48

 

 

 

558

 

 

 

(458

)

 

 

100

 

总收益

 

$

6,555

 

 

$

1,750

 

 

$

594

 

 

$

267

 

 

$

9,166

 

 

$

(458

)

 

$

8,708

 

 

 

 

截至2023年9月30日的本年度结束日期

 

收益

 

肯德基

 

 

必胜客

 

 

所有板块 (其他)
业务分部

 

 

企业及未分配

 

 

合并

 

 

消除

 

 

合并

 

公司销售额

 

$

6,274

 

 

$

1,728

 

 

$

46

 

 

$

—

 

 

$

8,048

 

 

$

—

 

 

$

8,048

 

特许费和收入

 

 

48

 

 

 

6

 

 

 

15

 

 

 

—

 

 

 

69

 

 

 

—

 

 

 

69

 

交易营业收入
与特许经营者进行的交易

 

 

33

 

 

 

3

 

 

 

56

 

 

 

190

 

 

 

282

 

 

 

—

 

 

 

282

 

其他收入

 

 

13

 

 

 

13

 

 

 

468

 

 

 

32

 

 

 

526

 

 

 

(440

)

 

 

86

 

总收益

 

$

6,368

 

 

$

1,750

 

 

$

585

 

 

$

222

 

 

$

8,925

 

 

$

(440

)

 

$

8,485

 

 

13

应收帐款

 

应收帐款主要包括来自交易应收款和特许加盟店的版税，一般应于相应销售发生后 30 的天数内到期。我们对应收帐款的信用损失提供根据当前预期信用损失（“CECL”）模型。CECL 模型要求估计自起初确认应收帐款以来预期信用损失的终生，并在估计CECL时将具有相似风险特征的应收帐款分组在一起。在评估CECL时，公司考虑合理和可支持的定量和质性信息，包括历史信用损失经验，根据影响收回能力的相关因素进行调整，以及指示外部市场条件的前瞻性信息。尽管我们在做出决定时使用可得到的最佳信息，但已登录应收款的最终收回也取决于未来经济事件和其他可能超出我们控制范围的条件。最终被认定为无法收回，且催收工作已经耗尽的应收款，将被核销为呆帐备抵帐款。 截至2024年9月30日和2023年12月31日，应收帐款准备结余分别为$1 百万美元和1 百万美元，逾期应收款金额微不足道。

 

获取合同成本

 

获取合同的成本包括我们在与特许加盟店签订合同前向YUm支付的预付特许费用，以及因我们的赋予存储价值商品、特权会籍计划和客户忠诚计划的预收收入而向YUm支付的许可费。这些费用符合资本化的要求，因为它们是与客户签订合同的增量成本，公司预期从已发生的此类成本中获得未来经济利益。这些获取合同成本包括在简明综合资产负债表的其他资产中，并按照与资产相关的商品或服务转移一致的系统性基础上摊销。 分拆后，我们不再需要支付由特许经营者支付的YUm初始费用或续约费。本公司未承担过任何与获取合同相关的减损损失，在所呈现的任何期间内都未发生。 无在所呈现的任何期间内，公司未发生与获取合同费用相关的减损损失。5 百万美元和6 ，，分别为2024年9月30日和2013年12月31日。

 

合约负债

 

2024年9月30日和2023年12月31日的合同负债如下所示：

 

合约负债

 

9/30/2024

 

 

12/31/2023

 

– 与预付存储价值产品相关的迳收入

 

$

127

 

 

$

142

 

– 与预付特许权费有关的迳收入

 

 

42

 

 

 

37

 

– 与客户忠诚度方案相关的迳收入

 

 

19

 

 

 

24

 

– 与特权会籍方案相关的迳收入

 

 

29

 

 

 

24

 

–其他

 

 

1

 

 

 

1

 

总计

 

$

218

 

 

$

228

 

 

合约负债主要包括与预付存储价值产品、特权会籍方案、客户忠诚度方案和预付特许权费有关的迳收入。与预付存储价值产品、特权会籍方案和客户忠诚度方案有关的迳收入已纳入短期应付款项及其他流动负债在总合简明合并资产负债表中。预期在未来12个月内认列为营业收入的预付特许权费已纳入应付款项及其他流动负债，其余余额则纳入总合简明合并资产负债表中的其他负债。每个期间开始时约定负债余额中包括的已认列为营业收入的收入合计为$67 百万美元和53 截至2024年和2023年9月30日止的季度，分别为$百万和$百万，而截至2024年和2023年9月30日的今年截至日期，为$百万。合同负债余额的变动未受业务收购、交易价格估计的变更或其他任何期间所提出的因素的重大影响。97 在实际操作上，公司选择不揭露与根据销售提供给特许经营者的基于销售权利和其他相关服务应收权益相关的剩余履约义务价值。履约义务的剩余期间为每项特许经营协议的剩余合同期限。我们根据一定比例的销售金额承认持续的特许经营者费用以及来自广告服务和其他为特许经营者提供的服务的收入，当这些销售发生时。

 

公司已选择作为一种便捷措施，不揭示与交易所为获取特许权和其他相关服务所承诺的基于销售提供给特许经营者的按销售额计算的特许权的剩余履约义务价值。履约义务的剩余期限为每个特许经营协议的剩余合同期限。我们根据一定比例的销售金额承认持续的特许经营者费用和来自广告服务和其他为特许经营者提供的服务的收入，当这些销售发生时。

14

 

 

第5条 - 每股收益（EPS）

 

以下表格总结了基本和稀释后每股收益的元件（以百万计算，除每股数据外）：

 

 

 

季度结束

 

 

截至本年结束

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

净收益 - 百胜中国控股有限公司

 

$

297

 

 

$

244

 

 

$

796

 

 

$

730

 

加权平均流通在外普通股
（用于基本计算）(a)

 

 

384

 

 

 

416

 

 

 

391

 

 

 

417

 

稀释薪酬股份奖惩效应(a)

 

 

1

 

 

 

4

 

 

 

2

 

 

 

4

 

加权平均普通股和股份增值潜在普通股
优先（用于稀释计算）的优先股(a)

 

 

385

 

 

 

420

 

 

 

393

 

 

 

421

 

普通股每股基本盈利

 

$

0.77

 

 

$

0.59

 

 

$

2.04

 

 

$

1.75

 

每普通股稀释盈利

 

$

0.77

 

 

$

0.58

 

 

$

2.03

 

 

$

1.73

 

从摊薄后每股收益计算中排除了股份为基础的奖励(b)

 

 

6

 

 

 

3

 

 

 

6

 

 

 

2

 

 

(a)
由于分拆，百胜中国普通股的股份于2016年10月19日作为纪录日期派发给YUM的股东，并纳入计算的加权平均普通股份。 YUm公司和百胜中国的股权奖项持有人通常会分别收到调整后的股权奖项，或者完全持有调整后的YUm或百胜中国股权奖项。 无论是公司员工还是YUM员工持有这些奖项，其后的行使都将增加流通普通股的数量。 由股权奖项产生的增量股份包括在摊薄后每股收益的计算中，如果有稀释效应。
(b)
这些未行使的股份增值权（“SARs”），限制性股票单位（“RSUs”）和绩效股票单位（“PSUs”）被排除在摊薄后每股收益的计算之外，因为这样做对所展示的期间来说是有抵减效应的，或者因为某些PSUs是根据未达到的绩效和市场条件而有条件发行的，截至2024年和2023年的9月30日还未达到。

 

附录6 – 股权

 

股份回购和养老

 

截至2024年9月30日，我们的董事会已授权共计＄3.4 十亿用于我们的股份回购计划。截至2024年9月30日和2023年止，公司已回购 27.3 百万股普通股，共计＄1,055 百万美元的收益，而 4.9 百万股普通股，共计＄281 百万，分别根据回购计划。总回购成本包括＄2 百万美元和2 分别于 2024 年和 2023 年 9 月 30 日后以交易日期购回的股份分别结算，截至 2024 年 9 月 30 日，大约有 $479 百万可供将来根据授权进行股份回购。

 

截至 2024 年 9 月 30 日止年初购回的股份中， 26.8 百万 股份已经退休并恢复为授权但未发行的普通股股份， 0.5 百万股在香港交易所回购的股份预期将于 2024 年 9 月 30 日后退休，并包含在总公司财务报表中的库藏股中。

 

2022 年的通胀减却法（“IRA”）在附注 12 中进一步讨论，实施了一项非常紧急税。 1在2022年12月31日后进行的净股份回购上%。预估对净股份回购征收的特税，作为购回股份成本的一部分，金额为$10 百万美元和3 分别为截至2024年和2023年9月30日的年度至今的百万美元。

 

附注 7 – 资产负债表补充资讯

 

应收帐款，净额

 

9/30/2024

 

 

12/31/2023

 

应收帐款，毛额

 

$

80

 

 

$

69

 

可疑帐款提存

 

 

(1

)

 

 

(1

)

应收帐款净额

 

$

79

 

 

$

68

 

 

预付费用和其他流动资产

 

9/30/2024

 

 

12/31/2023

 

增值税（"VAT"）资产

 

$

110

 

 

$

91

 

应收利息

 

 

56

 

 

 

46

 

支付处理器和汇总器应收帐款

 

 

45

 

 

 

78

 

存款，主要是租金存款

 

 

24

 

 

 

25

 

其他预付费用和流动资产

 

 

113

 

 

 

99

 

预付费用及其他流动资产

 

$

348

 

 

$

339

 

 

15

 

资产、厂房和设备（“PP&E”）

 

9/30/2024

 

 

12/31/2023

 

大楼和改良工程，以及在建施工

 

$

3,226

 

 

$

3,073

 

融资租赁，主要为大楼

 

 

81

 

 

 

68

 

机械设备

 

 

1,890

 

 

 

1,742

 

PP&E，总额

 

 

5,197

 

 

 

4,883

 

累积折旧

 

 

(2,766

)

 

 

(2,573

)

PP&E，净值

 

$

2,431

 

 

$

2,310

 

 

股权投资

 

9/30/2024

 

 

12/31/2023

 

对股权法下投资的投资

 

$

294

 

 

$

287

 

股权证券投资

 

 

94

 

 

 

45

 

股权投资

 

$

388

 

 

$

332

 

 

其他资产

 

9/30/2024

 

 

12/31/2023

 

土地使用权

 

$

112

 

 

$

115

 

长期存款，主要为租金押金

 

 

100

 

 

 

94

 

购买固定资产的预付款

 

 

28

 

 

 

28

 

增值税资产

 

 

7

 

 

 

6

 

获取合约成本

 

 

5

 

 

 

6

 

其他

 

 

15

 

 

 

16

 

其他资产

 

$

267

 

 

$

265

 

 

应付帐款和其他流动负债

 

9/30/2024

 

 

12/31/2023

 

应付账款

 

$

775

 

 

$

786

 

营业租赁负债

 

 

432

 

 

 

426

 

应计的薪资和福利费用

 

 

231

 

 

 

299

 

合约负债

 

 

183

 

 

 

196

 

应计的资本支出

 

 

167

 

 

 

226

 

分红派息应付款

 

 

86

 

 

 

40

 

应计的营销费用

 

 

66

 

 

 

51

 

其他流动负债

 

 

163

 

 

 

140

 

应付账款及其他流动负债

 

$

2,103

 

 

$

2,164

 

其他负债

 

9/30/2024

 

 

12/31/2023

 

合约负债

 

$

35

 

 

$

32

 

应计所得税负债

 

 

23

 

 

 

39

 

其他非流动负债

 

 

100

 

 

 

86

 

其他负债

 

$

158

 

 

$

157

 

 

第8条 - 商誉和无形资产

 

无形资产商誉摊销后金额变动如下：

 

 

 

总计
权益代理

 

 

肯德基

 

 

必胜客

 

 

所有板块 (其他)
业务分部

 

截至2023年12月31日的结余

 

 

 

 

 

 

 

 

 

 

 

 

商誉，总计

 

$

2,323

 

 

$

1,840

 

 

$

18

 

 

$

465

 

累计减损损失(a)

 

 

(391

)

 

 

—

 

 

 

—

 

 

 

(391

)

商誉净值

 

 

1,932

 

 

 

1,840

 

 

 

18

 

 

 

74

 

货币汇率调整影响

 

 

23

 

 

 

22

 

 

 

—

 

 

 

1

 

截至2024年9月30日的余额

 

 

 

 

 

 

 

 

 

 

 

 

商誉，总计

 

 

2,346

 

 

 

1,862

 

 

 

18

 

 

 

466

 

累计减损损失(a)

 

 

(391

)

 

 

—

 

 

 

—

 

 

 

(391

)

商誉净值

 

$

1,955

 

 

$

1,862

 

 

$

18

 

 

$

75

 

 

(a)
累积减值损失代表Little Sheep和Daojia报告单位的商誉减值。

 

16

2024年9月30日和2023年12月31日的无形资产净额如下：

 

 

 

9/30/2024

 

 

12/31/2023

 

 

 

总计
Carrying
金额(a)

 

 

留存
摊销(a)

 

 

累积减损损失(b)

 

 

净携带额

 

 

总计
Carrying
金额

 

 

累计资产
摊销

 

 

累积减损损失(b)

 

 

净携带额

 

有限寿命无形资产

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

再次取得特许经营权
　　权利

 

$

272

 

 

$

(269

)

 

$

—

 

 

$

3

 

 

$

268

 

 

$

(265

)

 

$

—

 

 

$

3

 

黄记皇
　　特许经营权相关资产

 

 

21

 

 

 

(5

)

 

 

—

 

 

 

16

 

 

 

21

 

 

 

(4

)

 

 

—

 

 

 

17

 

Daojia平台

 

 

16

 

 

 

(4

)

 

 

(12

)

 

 

—

 

 

 

16

 

 

 

(4

)

 

 

(12

)

 

 

—

 

顾客相关资产

 

 

12

 

 

 

(10

)

 

 

(2

)

 

 

—

 

 

 

12

 

 

 

(10

)

 

 

(2

)

 

 

—

 

其他

 

 

9

 

 

 

(6

)

 

 

—

 

 

 

3

 

 

 

9

 

 

 

(6

)

 

 

—

 

 

 

3

 

 

 

$

330

 

 

$

(294

)

 

$

(14

)

 

$

22

 

 

$

326

 

 

$

(289

)

 

$

(14

)

 

$

23

 

无限期使用无形资产
资产

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

小肥羊商标

 

$

51

 

 

$

—

 

 

$

—

 

 

$

51

 

 

$

51

 

 

$

—

 

 

$

—

 

 

$

51

 

黄记黄
商标

 

 

77

 

 

 

—

 

 

 

—

 

 

 

77

 

 

 

76

 

 

 

—

 

 

 

—

 

 

 

76

 

 

 

$

128

 

 

$

—

 

 

$

—

 

 

$

128

 

 

$

127

 

 

$

—

 

 

$

—

 

 

$

127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

无形资产总额

 

$

458

 

 

$

(294

)

 

$

(14

)

 

$

150

 

 

$

453

 

 

$

(289

)

 

$

(14

)

 

$

150

 

 

(a)
总承载金额和累计摊销额的变动包括货币翻译调整的影响。

 

(b)
积累的减值损失代表对从道家收购的无形资产进行的减值费用，主要归因于道家平台。

 

有限寿命无形资产的摊销费用少于1 百万和美元 1 百万，截至2024年和2023年9月30日的季度，和美元2 百万美元和4 百万，分别为截至2024年和2023年9月30日止年初至今的年度。截至2024年9月30日，未摊销有限寿命无形资产的预期摊提费用少于百万1 百万，预估其余2024年的款项为百万，并分别为2025年、2026年、2027年和2028年的每年百万2 百万，分别为截至2024年和2023年9月30日止年初至今的年度。截至2024年9月30日，未摊销有限寿命无形资产的预期摊提费用少于百万

 

第9条 - 短期借款

 

截至2024年9月30日和2023年12月31日，我们分别拥有$银行短期借款，主要用于管理我们营运子公司的运营资本，该借款由短期投资担保，分别为$百万。315 百万美元和168 百万，主要用于管理我们营运子公司的运营资本，这些借款由短期投资担保，分别为$百万。 nil 15.179 ，利率加权平均为%，并且应在其发行日期后一年内到期。 1.8%，并且应在其发行日期后一年内到期。

 

附注10 – 租赁

 

截至2024年9月30日，我们在中国租用了超过 其他处物业以供我们自有的餐厅使用。 13,000 我们通常与初始期限 其他的租赁协议进行餐厅的租赁。 10 天从发票日期计算，被视为商业合理。 20年我们的大多数租赁协议包含终止期权，如果餐厅亏损一定期间，我们可以提前终止租赁协议。我们通常不具有续租期权。只有当有合理把握我们会行使期权时，才会计入此类期权。我们目前大多数餐厅租赁协议下的租金通常有三种支付方式：（i）固定租金；（ii）固定基本租金或餐厅销售额的百分比中较高者；或（iii）餐厅销售额的百分比。大多数租赁要求我们为承租物支付共用区维护费用。除餐厅租赁外，我们还租用办公空间、 物流 中心和设备。我们的租赁协议不包含任何实质剩余价值担保或实质限制性约束。

 

在有限情况下，我们将某些餐厅转租给特许经营者或与其他第三方将我们的物业出租。这些租赁下的租金通常以固定基本租金或餐厅年销售额较高者为基准。与特许经营者的转租协议收入或与其他第三方的租赁合同收入分别包括在我们的简明综合收入表中的特许费用和收入以及其他收入中。

17

 

补充资产负债表

 

 

 

 

 

 

 

 

 

 

9/30/2024

 

 

12/31/2023

 

 

账户分类

资产

 

 

 

 

 

 

 

 

营运租赁权使用资产

 

$

2,215

 

 

$

2,217

 

 

营运租赁权使用资产

融资租赁使用权资产

 

 

48

 

 

 

41

 

 

PP&E，净值

租赁资产总额(a)

 

$

2,263

 

 

$

2,258

 

 

 

 

 

 

 

 

 

 

 

 

负债

 

 

 

 

 

 

 

 

目前

 

 

 

 

 

 

 

 

营业租赁负债

 

$

432

 

 

$

426

 

 

应付账款及其他流动负债

融资租赁负债。

 

 

5

 

 

 

5

 

 

应付账款及其他流动负债

非流动资产

 

 

 

 

 

 

 

 

营业租赁负债

 

 

1,880

 

 

 

1,899

 

 

非流动经营租赁负债

融资租赁负债。

 

 

51

 

 

 

44

 

 

非流动融资租赁负债

租赁负债总额(a)

 

$

2,368

 

 

$

2,374

 

 

 

 

租赁成本摘要

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

季度结束

 

 

截至本年结束

 

 

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

 

账户分类

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

营运租赁成本

 

$

130

 

 

$

125

 

 

$

388

 

 

$

386

 

 

占用和其他营业费用，
G&A或特许权支出

财务租赁成本

 

 

 

 

 

 

 

 

 

 

 

 

 

 

租赁资产的摊销

 

 

1

 

 

 

1

 

 

 

4

 

 

 

3

 

 

租金和其他营业费用

租赁负债利息

 

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

 

利息收益，净额

变量租赁成本(b)

 

 

118

 

 

 

115

 

 

 

330

 

 

 

316

 

 

占用和其他营业费用
或加盟费用

短期租赁成本

 

 

4

 

 

 

3

 

 

 

10

 

 

 

12

 

 

占用和其他营业费用
或G&A

分割租金收入

 

 

(5

)

 

 

(5

)

 

 

(15

)

 

 

(16

)

 

加盟费和收入或
其他收入

租赁成本总额

 

$

249

 

 

$

240

 

 

$

719

 

 

$

703

 

 

 

 

(a)
截至2024年9月30日，除了外汇换算的影响外，租赁权利-使用 (“ROU”) 资产减少，主要是由于与固定租金支付的现有租约相关的资产摊销所致。 我们租约中变动租金支付部分较高。租赁负债的减少与ROU资产的减少相一致。

 

(b)
截至2023年9月30日止的季度和本年至今，公司从与COVID-19大流行影响相关的房东处获得的租赁让渡金少于$百万，分别。1 百万美元和10 租赁让渡主要是以在公司餐厅业务受到不利影响期间的租金减免形式提供。公司遵循了FASB职员的解释指引。 问题与回答 该文件于2020年4月发行并选择：（1）不评估是否应将因应COVID-19大流行而收到的优惠视为租赁修改，以及（2）假设该优惠已纳入现有租赁合同并无合同修改。该优惠在获得时期被认列为负的变动租金成本。公司从2024年开始不再获得此等租金优惠。

 

补充现金流量资讯

 

 

 

 

 

 

 

 

截至本年结束

 

 

 

9/30/2024

 

 

9/30/2023

 

计入租赁负债衡量的金额所支付的现金：

 

 

 

 

 

 

来自经营租赁的营运现金流量

 

$

385

 

 

$

401

 

来自金融租赁的营运现金流量

 

 

2

 

 

 

2

 

来自财务租赁的融资现金流量

 

 

4

 

 

 

4

 

以租赁负债换得的使用权资产(c):

 

 

 

 

 

 

营运租赁

 

$

263

 

 

$

281

 

融资租赁

 

 

10

 

 

 

4

 

 

(c)
此用于为租赁负债取得的ROU资产进行的补充非现金披露中包括 分别为截至2024年和2023年9月30日至今的获得新ROU资产的租赁负债增加278 百万美元和281 的百万美元，以及 因修改或其他重新评估事件而导致的租赁负债或ROU资产调整，导致一笔5 百万减少和百万增加于截至2024年和2023年9月30日止年度的租赁负债。4 分别是2024年和2023年迄今为止租赁负债的百万增加。

18

 

租赁期限和折扣率

 

 

 

 

 

 

 

 

9/30/2024

 

 

9/30/2023

 

加权平均剩余租期（年）

 

 

 

 

 

 

营运租赁

 

 

7.0

 

 

 

7.1

 

融资租赁

 

 

10.9

 

 

 

11.1

 

 

 

 

 

 

 

 

加权平均折现利率

 

 

 

 

 

 

营运租赁

 

 

4.6

%

 

 

4.9

%

融资租赁

 

 

4.7

%

 

 

5.0

%

 

未来租金支付和租赁负债摘要

 

2024年9月30日的租赁负债到期情况如下：

 

 

 

金额
营运租赁

 

 

金额
财务租赁

 

 

总计

 

2024年剩余部分

 

$

158

 

 

$

2

 

 

$

160

 

2025

 

 

484

 

 

 

7

 

 

 

491

 

2026

 

 

438

 

 

 

7

 

 

 

445

 

2027

 

 

383

 

 

 

7

 

 

 

390

 

2028

 

 

318

 

 

 

7

 

 

 

325

 

此后

 

 

932

 

 

 

42

 

 

 

974

 

总未折扣租赁付款

 

 

2,713

 

 

 

72

 

 

 

2,785

 

减：隐含利息(d)

 

 

401

 

 

 

16

 

 

 

417

 

租赁负债现值

 

$

2,312

 

 

$

56

 

 

$

2,368

 

 

(d)
由于无法轻易确定租约中的隐含利率，我们使用根据起租日期提供的资讯计算隐含利息和租赁付款的增量借款利率来确定。对于2019年1月1日之前已开始的营运租约，我们使用了增量借款利率。

 

截至2024年9月30日，我们签订了未开始的其他租约协议，总未折扣的最低租赁付款为$124 百万。这些租约将于2024年第四季至2026年之间开始，租赁期为 1 年至 20 年

 

 

附录11 - 公平值衡量 和揭示

 

公司的金融资产和负债主要包括现金及现金等价物、短期投资、长期银行存款及票据、应收帐款、应付帐款、短期借款和租赁负债，这些资产和负债的账面值一般近似其公平值。

 

公司的金融资产还包括其对美团的股权投资，根据每个报告期结束时股票的收盘市场价格衡量公平值，随后的公平值变动记录在我们的综合损益表中。

 

下表是我们的金融资产经常性衡量或以公平值披露的摘要，以及该衡量所属的公平值层次。公司将其现金等价物、短期投资、长期银行存款和票据，以及股权投资分类为公平值层次的Level 1或Level 2，因为它分别使用市场报价或替代定价来源和利用市场可观察的输入模型判断它们的公平值。 没有 在截至2024年9月30日和2023年止的季度和年度内，在公平值层次内的层级之间发生了转移。

19

 

 

 

 

 

 

公允价值衡量或披露
于2024年9月30日

 

 

 

结存
2024年9月30日

 

 

一级

 

 

第二级

 

 

等级 3

 

现金等价物：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

$

475

 

 

 

 

 

$

475

 

 

 

 

固收债券(a)

 

 

319

 

 

 

21

 

 

 

298

 

 

 

 

货币市场基金

 

 

44

 

 

 

44

 

 

 

 

 

 

 

现金等价物总额

 

 

838

 

 

 

65

 

 

 

773

 

 

 

—

 

短期投资：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

 

805

 

 

 

 

 

 

805

 

 

 

 

结构性存款

 

 

391

 

 

 

 

 

 

391

 

 

 

 

变量回报投资

 

 

142

 

 

 

142

 

 

 

 

 

 

 

短期投资总额

 

 

1,338

 

 

 

142

 

 

 

1,196

 

 

 

—

 

长期银行存款和票据：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

 

455

 

 

 

 

 

 

455

 

 

 

 

固收银行票据(a)

 

 

478

 

 

 

 

 

 

478

 

 

 

 

总长期银行存款和票据

 

 

933

 

 

 

—

 

 

 

933

 

 

 

—

 

权益投资：

 

 

 

 

 

 

 

 

 

 

 

 

股权证券投资

 

 

94

 

 

 

94

 

 

 

 

 

 

 

总计

 

$

3,203

 

 

$

301

 

 

$

2,902

 

 

$

—

 

 

 

 

 

 

 

公平价值评估或披露
截至2023年12月31日

 

 

 

结存
2023年12月31日

 

 

一级

 

 

第二级

 

 

等级 3

 

现金等价物：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

$

293

 

 

 

 

 

$

293

 

 

 

 

固收债券资产(a)

 

 

14

 

 

 

14

 

 

 

 

 

 

 

货币市场基金

 

 

11

 

 

 

11

 

 

 

 

 

 

 

现金等价物总额

 

 

318

 

 

 

25

 

 

 

293

 

 

 

—

 

短期投资：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

 

1,113

 

 

 

 

 

 

1,113

 

 

 

 

固收债券资产(a)

 

 

200

 

 

 

 

 

 

200

 

 

 

 

结构性存款

 

 

138

 

 

 

 

 

 

138

 

 

 

 

变量回报投资

 

 

21

 

 

 

21

 

 

 

 

 

 

 

短期投资总额

 

 

1,472

 

 

 

21

 

 

 

1,451

 

 

 

—

 

长期银行存款和票据：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

 

903

 

 

 

 

 

 

903

 

 

 

 

固收银行票据(a)

 

 

362

 

 

 

 

 

 

362

 

 

 

 

总长期银行存款和票据

 

 

1,265

 

 

 

—

 

 

 

1,265

 

 

 

—

 

股票投资：

 

 

 

 

 

 

 

 

 

 

 

 

股权证券投资

 

 

45

 

 

 

45

 

 

 

 

 

 

 

总计

 

$

3,100

 

 

$

91

 

 

$

3,009

 

 

$

—

 

 

(a)
分类为持有至到期投资，按摊销成本计量。

 

公司根据监管要求，需要存放银行存款或购买保险，以确保公司发行的预付存储价值卡的余额。$63 百万美元的长期银行存款和票据中的时间存款在2024年9月30日前，被限制使用。21 百万美元的短期投资中的时间存款和28 百万美元的长期银行存款和票据中的时间存款在2023年12月31日前，被限制使用。

 

一次性公允价值评估

 

此外，公司的某些餐厅级资产（包括营运租赁权利用率资产及固定资产）、商誉和无形资产根据不可观察的输入（第3级）以非定期方式按公平价值计量，如果确定有损坏。

20

 

在确定餐厅层级资产的公平价值时，公司考虑了市场参与者的资产最高和最佳利用，这是以运营餐厅的预测折现现金流和市场参与者为了转租ROU资产并收购其余餐厅资产而支付的价格所代表的，即使该使用方式与公司目前使用方式不同。税后现金流纳入我们认为特许经营者会采取的合理假设，例如销售增长，并包括我们将在符合市场条件下的特许合同中收取的特许权使用费扣除。在公平价值计算中使用的折现率是我们估计的特许经营者在购买类似餐厅及相关长期资产时希望收到的所需报酬率。在餐厅层级资产的最高和最佳利用代表通过转租运营租赁ROU资产并收购其余餐厅资产的情况下，公司继续使用这些资产运营其餐厅业务，这与通过经营餐厅概念实现营业收入增长的长期策略一致。

根据每个相关测量日期，如果餐厅层级资产被确定存在减值，公平价值主要由市场参与者支付的价格来代表，用以转租运营租赁ROU资产并收购其余餐厅资产，这反映了资产的最高和最佳利用。在公平价值评估中使用的重要不可观察输入包括市场租金价格，这些价格是通过独立的估值专家的协助确定的。直接比较方法是通过假定对现有状态的每个物业进行转租并可空置的方式来使用估值技术。参照在相关市场中可用的租赁交易，选择了附近相近的可比物业并进行调整，以考虑例如地理位置和物业规模等因素的差异。

 

以下表格呈现截至2024年9月30日的季度和今年迄今为止所有非定期的公平价值衡量金额，这些金额是基于不可观察的输入 (第3级)。这些金额不包括在相应期末日期前在餐厅进行的公平价值衡量，而这些餐厅后来被关闭或转让加盟。

 

 

 

季度结束

 

 

截至本年结束

 

 

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

 

账户分类

餐厅水平的减值(a)

 

$

—

 

 

$

—

 

 

$

7

 

 

$

14

 

 

关闭和减值费用，净值

 

(a)
餐厅水平 减值费用记录在关闭和减值费用中，主要是由我们对正在营运的餐厅的长寿命资产进行半年度减值评估而导致，该等餐厅在减值时正在营运，并且尚未提供转售权。在考虑相应期间内记录的减值费用后，截至相关测量日期，该等资产的公平价值为$23 百万美元和55 百万。

 

附注12－所得税

 

 

 

季度结束

 

 

截至本年结束

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

所得税负担

 

$

119

 

 

$

100

 

 

$

309

 

 

$

296

 

有效税率

 

 

27.3

%

 

 

27.5

%

 

 

26.6

%

 

 

27.2

%

 

2024年9月30日结束的季度的较低有效税率主要是由于我们在美团投资的公允价值变动对其产生的影响。

 

至2024年9月30日结束的今年截至目前为止的较低有效税率主要是由于某些不可抵扣项目减少和我们在美团投资的公允价值变动所带来的有利影响。

 

2017年12月，美国颁布了《减税和就业法案》（税法），其中包括了广泛的范围的税改。该法案要求一位美国股东对其某些外国子公司赚取的全球无形低税所得（GILTI）征税。我们选择了将当年GILTI税视为即期费用并纳入估算年度有效税率。

 

2022年8月，在美国签署了IRA法案，其中包含某些税收措施，包括对某些大型企业征收公司替代最低税（"CAMT"） 15％。2022年12月27日，美国财政部和国税局（"IRS"）发布了2023-7号通知，宣布他们打算发布旨在解决新CAMt应用的拟议法规。2023年和2024年，还将发布其他通知或拟议法规，以继续就拟议法规发布前有关某些CAMt问题提供临时指引。公司将密切关注监管发展，并继续评估对我们的基本报表可能造成的影响。

21

In December 2022, a refined Foreign Sourced Income Exemption (“FSIE”) regime was published in Hong Kong and took effect from January 1, 2023. Under the new FSIE regime, certain foreign sourced income would be deemed as being sourced from Hong Kong and chargeable to Hong Kong Profits Tax, if the recipient entity fails to meet the prescribed exception requirements. Certain dividends, interests and disposal gains, if any, received by us and our Hong Kong subsidiaries may be subject to the new tax regime. Based on our preliminary analysis, this legislation did not have a material impact on our financial statements. The Company will monitor the developments and continue to evaluate the impact, if any.

 

The Organization for Economic Cooperation and Development (the “OECD”), the European Union and other jurisdictions (including jurisdictions in which we have operations or presence) have committed to enacting substantial changes to numerous long-standing tax principles impacting how large multinational enterprises are taxed. In particular, the OECD’s Pillar Two initiative introduced a 15% global minimum tax applied on a jurisdiction-by-jurisdiction basis and for which many jurisdictions have now committed to an effective enactment date starting January 1, 2024. The Company will monitor the regulatory developments and continue to evaluate the impact, if any.

 

We are subject to reviews, examinations and audits by Chinese tax authorities, the IRS and other tax authorities with respect to income and non-income based taxes. Since 2016, we have been under a national audit on transfer pricing by the Chinese State Taxation Administration (the “STA”) in China regarding our related party transactions for the period from 2006 to 2015. The information and views currently exchanged with the tax authorities focus on our franchise arrangement with YUM. We continue to provide information requested by the tax authorities to the extent it is available to the Company. It is reasonably possible that there could be significant developments, including expert review and assessment by the STA, within the next 12 months. The ultimate assessment and decision of the STA will depend upon further review of the information provided, as well as ongoing technical and other discussions with the STA and in-charge local tax authorities, and therefore, it is not possible to reasonably estimate the potential impact at this time. We will continue to defend our transfer pricing position. However, if the STA prevails in the assessment of additional tax due based on its ruling, the assessed tax, interest and penalties, if any, could have a material adverse impact on our financial position, results of operations and cash flows.

 

 

Note 13 – Segment Reporting

 

We have two reportable segments: KFC and Pizza Hut. Our non-reportable operating segments, including the operations of Lavazza, Huang Ji Huang, Little Sheep and Taco Bell, our delivery operating segment and our e-commerce business, are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate.

 

 

 

Quarter Ended 9/30/2024

 

Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other
Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

Revenue from external
   customers

 

$

2,311

 

 

$

615

 

 

$

48

 

 

$

97

 

 

$

3,071

 

 

$

—

 

 

$

3,071

 

Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

164

 

 

 

—

 

 

 

164

 

 

 

(164

)

 

 

—

 

Total

 

$

2,311

 

 

$

615

 

 

$

212

 

 

$

97

 

 

$

3,235

 

 

$

(164

)

 

$

3,071

 

 

 

 

Quarter Ended 9/30/2023

 

Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other
Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

Revenue from external
   customers

 

$

2,186

 

 

$

599

 

 

$

50

 

 

$

79

 

 

$

2,914

 

 

$

—

 

 

$

2,914

 

Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

151

 

 

 

—

 

 

 

151

 

 

 

(151

)

 

 

—

 

Total

 

$

2,186

 

 

$

599

 

 

$

201

 

 

$

79

 

 

$

3,065

 

 

$

(151

)

 

$

2,914

 

 

 

 

Year to Date Ended 9/30/2024

 

Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other
Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

Revenue from external
   customers

 

$

6,555

 

 

$

1,750

 

 

$

136

 

 

$

267

 

 

$

8,708

 

 

$

—

 

 

$

8,708

 

Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

458

 

 

 

—

 

 

 

458

 

 

 

(458

)

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

6,555

 

 

$

1,750

 

 

$

594

 

 

$

267

 

 

$

9,166

 

 

$

(458

)

 

$

8,708

 

 

 

 

Year to Date Ended 9/30/2023

 

Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other
Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

Revenue from external
   customers

 

$

6,368

 

 

$

1,750

 

 

$

145

 

 

$

222

 

 

$

8,485

 

 

$

—

 

 

$

8,485

 

Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

440

 

 

 

—

 

 

 

440

 

 

 

(440

)

 

 

—

 

Total

 

$

6,368

 

 

$

1,750

 

 

$

585

 

 

$

222

 

 

$

8,925

 

 

$

(440

)

 

$

8,485

 

 

22

 

 

 

Quarter Ended

 

 

Year to Date Ended

 

Operating Profit (Loss)

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

KFC

 

$

364

 

 

$

342

 

 

$

1,000

 

 

$

1,035

 

Pizza Hut

 

 

52

 

 

 

47

 

 

 

139

 

 

 

137

 

All Other Segments

 

 

(4

)

 

 

(7

)

 

 

(12

)

 

 

(20

)

Unallocated revenues from transactions with franchisees(b)

 

 

80

 

 

 

67

 

 

 

219

 

 

 

190

 

Unallocated other revenues

 

 

17

 

 

 

12

 

 

 

48

 

 

 

32

 

Unallocated expenses for transactions with franchisees(b)

 

 

(79

)

 

 

(66

)

 

 

(217

)

 

 

(188

)

Unallocated other operating costs and expenses

 

 

(17

)

 

 

(12

)

 

 

(47

)

 

 

(30

)

Unallocated and corporate G&A expenses

 

 

(42

)

 

 

(60

)

 

 

(120

)

 

 

(161

)

Unallocated other income, net

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Operating Profit

 

$

371

 

 

$

323

 

 

$

1,011

 

 

$

996

 

Interest income, net(a)

 

 

31

 

 

 

46

 

 

 

100

 

 

 

124

 

Investment gain (loss)(a)

 

 

34

 

 

 

(4

)

 

 

50

 

 

 

(32

)

Income Before Income Taxes and Equity in
   Net Earnings (Losses) from Equity Method Investments

 

$

436

 

 

$

365

 

 

$

1,161

 

 

$

1,088

 

 

 

 

Quarter Ended

 

 

Year to Date Ended

 

Impairment Charges

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

KFC(c)

 

$

6

 

 

$

2

 

 

$

16

 

 

$

14

 

Pizza Hut(c)

 

 

1

 

 

 

1

 

 

 

7

 

 

 

6

 

All Other Segments(c)

 

 

3

 

 

 

—

 

 

 

6

 

 

 

4

 

 

 

$

10

 

 

$

3

 

 

$

29

 

 

$

24

 

 

 

 

Total Assets

 

 

 

9/30/2024

 

 

12/31/2023

 

KFC

 

$

5,472

 

 

$

5,371

 

Pizza Hut

 

 

940

 

 

 

904

 

All Other Segments

 

 

322

 

 

 

347

 

Corporate and Unallocated(d)

 

 

5,067

 

 

 

5,409

 

 

 

$

11,801

 

 

$

12,031

 

 

(a)
Amounts have not been allocated to any segment for performance reporting purposes.
(b)
Primarily includes revenues and associated expenses of transactions with franchisees derived from the Company’s central procurement model whereby the Company centrally purchases substantially all food and paper products from suppliers then sells and delivers to KFC and Pizza Hut restaurants, including franchisees. Amounts have not been allocated to any segment for purposes of making operating decisions or assessing financial performance as the transactions are deemed corporate revenues and expenses in nature.
(c)
Primarily includes store closure impairment charges and restaurant-level impairment charges resulting from our semi-annual impairment evaluation.
(d)
Primarily includes cash and cash equivalents, short-term investments, long-term bank deposits and notes, equity investments, and inventories that are centrally managed and PP&E that are not specifically identifiable within each segment.

 

As substantially all of the Company’s revenue is derived from the PRC and substantially all of the Company's long-lived assets are located in the PRC, no geographical information is presented. In addition, revenue derived from and long-lived assets located in the U.S., the Company’s country of domicile, are immaterial.

 

 

Note 14 – Contingencies

 

Indemnification of China Tax on Indirect Transfers of Assets

 

In February 2015, the STA issued Bulletin 7 on Income arising from Indirect Transfers of Assets by Non-Resident Enterprises. Pursuant to Bulletin 7, an “indirect transfer” of Chinese taxable assets, including equity interests in a Chinese resident enterprise, by a non-resident enterprise, may be recharacterized and treated as a direct transfer of Chinese taxable assets, if such arrangement does not have reasonable commercial purpose and the transferor has avoided payment of Chinese enterprise income tax. As a result, gains derived from such an indirect transfer may be subject to Chinese enterprise income tax at a rate of 10%.

 

23

YUM concluded and we concurred that it is more likely than not that YUM will not be subject to this tax with respect to the distribution. However, there are significant uncertainties regarding what constitutes a reasonable commercial purpose, how the safe harbor provisions for group restructurings are to be interpreted, and how the taxing authorities will ultimately view the distribution. As a result, YUM’s position could be challenged by Chinese tax authorities resulting in a 10% tax assessed on the difference between the fair market value and the tax basis of the separated China business. As YUM’s tax basis in the China business is minimal, the amount of such a tax could be significant.

 

Any tax liability arising from the application of Bulletin 7 to the distribution is expected to be settled in accordance with the tax matters agreement between the Company and YUM. Pursuant to the tax matters agreement, to the extent any Chinese indirect transfer tax pursuant to Bulletin 7 is imposed, such tax and related losses will be allocated between YUM and the Company in proportion to their respective share of the combined market capitalization of YUM and the Company during the 30 trading days after the separation. Such a settlement could be significant and have a material adverse effect on our results of operations and our financial condition. At the inception of the tax indemnity being provided to YUM, the fair value of the non-contingent obligation to stand ready to perform was insignificant and the liability for the contingent obligation to make payment was not probable or estimable.

 

Legal Proceedings

 

The Company is subject to various lawsuits covering a variety of allegations from time to time. The Company believes that the ultimate liability, if any, in excess of amounts already provided for these matters in the Condensed Consolidated Financial Statements, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Matters faced by the Company from time to time include, but are not limited to, claims from landlords, employees, customers and others related to operational, contractual or employment issues.

 

Note 15 – Subsequent Events

 

Cash Dividend

 

On November 4, 2024, the Company announced that the Board of Directors declared a cash dividend of $0.16 per share on Yum China’s common stock, payable on December 17, 2024, to stockholders of record as of the close of business on November 26, 2024. Total estimated cash dividend payable is approximately $61 million.

 

Share Repurchase Authorization

 

On November 4, 2024, the Company’s Board of Directors increased the Company’s share repurchase authorization by $1 billion, bringing total authorization since 2017 to $4.4 billion. With the increase of share repurchase authorization, approximately $1.4 billion remained available for future share repurchases under the authorization.

24

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

References to the Company throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations (this “MD&A”) are made using the first person notations of “we,” “us” or “our.” This MD&A contains forward-looking statements, including statements with respect to the ongoing transfer pricing audit, the retail tax structure reform, our growth plans, future capital resources to fund our operations and anticipated capital expenditures, share repurchases and dividends, and the impact of new accounting pronouncements not yet adopted. See “Cautionary Note Regarding Forward-Looking Statements” at the end of this Item 2 for information regarding forward-looking statements.

 

Introduction

 

Yum China Holdings, Inc. is the largest restaurant company in China in terms of 2023 system sales, with 15,861 restaurants covering around 2,200 cities primarily in China as of September 30, 2024. Our growing restaurant network consists of our flagship KFC and Pizza Hut brands, as well as emerging brands such as Lavazza, Huang Ji Huang, Little Sheep and Taco Bell. We have the exclusive right to operate and sublicense the KFC, Pizza Hut and, subject to achieving certain agreed-upon milestones, Taco Bell brands in China (excluding Hong Kong, Macau and Taiwan), and own the intellectual property of the Little Sheep and Huang Ji Huang concepts outright. We also established a joint venture with Lavazza Group, the world-renowned family-owned Italian coffee company, to explore and develop the Lavazza coffee concept in China. KFC was the first major global restaurant brand to enter China in 1987. With more than 35 years of operations, we have developed extensive operating experience in the China market. We believe that there are significant opportunities to further expand within China, and we intend to focus our efforts on increasing our geographic footprint in both existing and new cities.

 

KFC is the leading and the largest quick-service restaurant (“QSR”) brand in China in terms of system sales. As of September 30, 2024, KFC operated 11,283 restaurants in around 2,200 cities across China.

 

Pizza Hut is the leading and the largest casual dining restaurant (“CDR”) brand in China in terms of system sales and number of restaurants. As of September 30, 2024, Pizza Hut operated 3,606 restaurants in over 800 cities.

 

Overview

 

We intend for this MD&A to provide the reader with information that will assist in understanding our results of operations, including metrics that management uses to assess the Company’s performance. Throughout this MD&A, we discuss the following performance metrics:

 

•
Certain performance metrics and non-GAAP measures are presented excluding the impact of foreign currency translation (“F/X”). These amounts are derived by translating current year results at prior year average exchange rates. We believe the elimination of the F/X impact provides better year-to-year comparability without the distortion of foreign currency fluctuations.
•
System sales growth reflects the results of all restaurants regardless of ownership, including Company-owned and franchise restaurants, except for sales from non-Company-owned restaurants for which we do not receive a sales-based royalty. Sales of franchise restaurants typically generate ongoing franchise fees for the Company at an average rate of approximately 6% of system sales. Franchise restaurant sales are not included in Company sales in the Condensed Consolidated Statements of Income; however, the franchise fees are included in the Company’s revenues. We believe system sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all of our revenue drivers, Company and franchise same-store sales as well as net unit growth.
•
Effective January 1, 2018, the Company revised its definition of same-store sales growth to represent the estimated percentage change in sales of food of all restaurants in the Company system that have been open prior to the first day of our prior fiscal year, excluding the period during which stores are temporarily closed. We refer to these as our “base” stores. Previously, same-store sales growth represented the estimated percentage change in sales of all restaurants in the Company system that have been open for one year or more, including stores temporarily closed, and the base stores changed on a rolling basis from month to month. This revision was made to align with how management measures performance internally and focuses on trends of a more stable base of stores.
•
Company sales represent revenues from Company-owned restaurants. Within the analysis of Company sales, Total revenue and Restaurant profit, store portfolio actions represent the net impact from new-unit openings, acquisitions, refranchising and store closures. Net new unit contribution represents net revenue growth primarily from store portfolio actions excluding temporary store closures. Other primarily represents the impact of same-store sales as well as the impact of changes in restaurant operating costs such as inflation/deflation.

 

25

All Note references in this MD&A refer to the Notes to the Condensed Consolidated Financial Statements. Tabular amounts are displayed in millions of U.S. dollars except percentages and per share and unit count amounts, or as otherwise specifically identified. Percentages may not recompute due to rounding. References to quarters are references to the Company’s fiscal quarters.

 

Quarters and Years to Date Ended September 30, 2024 and 2023

 

Results of Operations

 

Summary

 

The Company has two reportable segments: KFC and Pizza Hut. Our non-reportable operating segments, including the operations of Lavazza, Huang Ji Huang, Little Sheep and Taco Bell, our delivery operating segment and our e-commerce business, are combined and referred to as All Other Segments, as those operating segments are insignificant both individually and in the aggregate. Additional details on our reportable operating segments are included in Note 13.

 

 

Quarter Ended

 

 

%/ppts Change

 

 

Year to Date Ended

 

 

%/ppts Change

 

 

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

 

Ex F/X

 

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

 

Ex F/X

 

 

System Sales Growth(a) (%)

 

4

 

 

 

15

 

 

NM

 

 

NM

 

 

 

5

 

 

 

20

 

 

NM

 

 

NM

 

 

Same-Store Sales (Decline)
   Growth(a) (%)

 

(3

)

 

 

4

 

 

NM

 

 

NM

 

 

 

(3

)

 

 

8

 

 

NM

 

 

NM

 

 

Operating Profit

 

371

 

 

 

323

 

 

 

+15

 

 

 

+14

 

 

 

1,011

 

 

 

996

 

 

 

+1

 

 

 

+5

 

 

Adjusted Operating Profit(b)

 

371

 

 

 

327

 

 

 

+13

 

 

 

+13

 

 

 

1,011

 

 

 

1,005

 

 

 

+1

 

 

 

+4

 

 

Core Operating Profit(b)

 

369

 

 

 

312

 

 

NM

 

 

 

+18

 

 

 

1,040

 

 

 

951

 

 

NM

 

 

 

+10

 

 

OP Margin(c) (%)

 

12.1

 

 

 

11.1

 

 

 

+1.0

 

 

 

+1.0

 

 

 

11.6

 

 

 

11.7

 

 

 

(0.1

)

 

 

—

 

 

Core OP Margin(b) (%)

 

12.1

 

 

 

10.7

 

 

NM

 

 

 

+1.4

 

 

 

11.7

 

 

 

11.2

 

 

NM

 

 

 

+0.5

 

 

Net Income

 

297

 

 

 

244

 

 

 

+22

 

 

 

+21

 

 

 

796

 

 

 

730

 

 

 

+9

 

 

 

+12

 

 

Adjusted Net Income(b)

 

297

 

 

 

248

 

 

 

+20

 

 

 

+19

 

 

 

796

 

 

 

739

 

 

 

+8

 

 

 

+11

 

 

Diluted Earnings Per
   Common Share

 

0.77

 

 

 

0.58

 

 

 

+33

 

 

 

+32

 

 

 

2.03

 

 

 

1.73

 

 

 

+17

 

 

 

+20

 

 

Adjusted Diluted Earnings
   Per Common Share(b)

 

0.77

 

 

 

0.59

 

 

 

+31

 

 

 

+30

 

 

 

2.03

 

 

 

1.75

 

 

 

+16

 

 

 

+19

 

 

 

NM refers to not meaningful.

 

(a)
System Sales and Same-Store Sales growth percentages as shown in the table exclude the impact of F/X. Effective January 1, 2018, temporary store closures are normalized in the same-store sales calculation by excluding the period during which stores are temporarily closed.

 

(b)
See “Non-GAAP Measures” below for definitions and reconciliations of the most directly comparable GAAP financial measures to the non-GAAP measures.

 

(c)
OP margin is defined as Operating Profit divided by Total revenues.

 

As compared to the third quarter of 2023, Total revenues in the third quarter of 2024 increased 5%, or 4% excluding the impact of F/X. Total revenues for the year to date ended September 30, 2024 increased 3%, or 5% excluding the impact of F/X. The increase in Total revenues for the quarter and year to date ended September 30, 2024, excluding the impact of F/X, was driven by 7% and 8% net new unit contribution, respectively, partially offset by same-store sales decline, resulting from lower ticket average and same-store transaction growth.

 

Operating profit for the third quarter increased 15%, or 14% excluding the impact of F/X. Operating profit for the year to date ended September 30, 2024 increased 1%, or 5% excluding the impact of F/X. Further excluding the lapping impact from the VAT deductions and temporary relief from landlords and government agencies received in prior year, the increase in Operating profit for the quarter and year to date ended September 30, 2024 was primarily driven by the increase in Total revenues, operational efficiency improvement, favorable commodity prices, lower advertising expenses and lower performance-based compensation costs, offset by increased value-for-money offerings and wage inflation in the low single digits.

 

 

26

The Consolidated Results of Operations for the quarters and years to date ended September 30, 2024 and 2023 and other data are presented below:

 

 

 

Quarter Ended

 

 

% B/(W)(a)

 

Year to Date Ended

 

 

% B/(W)(a)

 

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

Company sales

 

$

2,895

 

 

$

2,759

 

 

 

5

 

 

 

 

4

 

 

 

$

8,217

 

 

$

8,048

 

 

 

2

 

 

 

 

5

 

 

Franchise fees and income

 

 

25

 

 

 

23

 

 

 

8

 

 

 

 

7

 

 

 

 

72

 

 

 

69

 

 

 

3

 

 

 

 

6

 

 

Revenues from transactions with
   franchisees

 

 

116

 

 

 

100

 

 

 

16

 

 

 

 

15

 

 

 

 

319

 

 

 

282

 

 

 

13

 

 

 

 

15

 

 

Other revenues

 

 

35

 

 

 

32

 

 

 

14

 

 

 

 

13

 

 

 

 

100

 

 

 

86

 

 

 

17

 

 

 

 

20

 

 

Total revenues

 

$

3,071

 

 

$

2,914

 

 

 

5

 

 

 

 

4

 

 

 

$

8,708

 

 

$

8,485

 

 

 

3

 

 

 

 

5

 

 

Company restaurant expenses

 

$

2,401

 

 

$

2,289

 

 

 

(5

)

 

 

 

(4

)

 

 

$

6,839

 

 

$

6,611

 

 

 

(3

)

 

 

 

(6

)

 

Operating Profit

 

$

371

 

 

$

323

 

 

 

15

 

 

 

 

14

 

 

 

$

1,011

 

 

$

996

 

 

 

1

 

 

 

 

5

 

 

OP Margin %

 

 

12.1

%

 

 

11.1

%

 

 

1.0

 

ppts.

 

 

1.0

 

ppts.

 

 

11.6

%

 

 

11.7

%

 

 

(0.1

)

ppts.

 

 

—

 

ppts.

Interest income, net

 

 

31

 

 

 

46

 

 

 

(32

)

 

 

 

(32

)

 

 

 

100

 

 

 

124

 

 

 

(19

)

 

 

 

(19

)

 

Investment gain (loss)

 

 

34

 

 

 

(4

)

 

NM

 

 

 

NM

 

 

 

 

50

 

 

 

(32

)

 

NM

 

 

 

NM

 

 

Income tax provision

 

 

(119

)

 

 

(100

)

 

 

(19

)

 

 

 

(18

)

 

 

 

(309

)

 

 

(296

)

 

 

(5

)

 

 

 

(7

)

 

Equity in net earnings (losses) from
   equity method investments

 

 

2

 

 

 

2

 

 

 

(11

)

 

 

 

(14

)

 

 

 

2

 

 

 

2

 

 

 

(11

)

 

 

 

(13

)

 

Net Income – including
   noncontrolling interests

 

 

319

 

 

 

267

 

 

 

20

 

 

 

 

19

 

 

 

 

854

 

 

 

794

 

 

 

8

 

 

 

 

11

 

 

Net Income – noncontrolling
   interests

 

 

22

 

 

 

23

 

 

 

3

 

 

 

 

4

 

 

 

 

58

 

 

 

64

 

 

 

9

 

 

 

 

6

 

 

Net Income – Yum China
   Holdings, Inc.

 

 

297

 

 

$

244

 

 

 

22

 

 

 

 

21

 

 

 

$

796

 

 

$

730

 

 

 

9

 

 

 

 

12

 

 

Diluted Earnings Per Common Share

 

$

0.77

 

 

$

0.58

 

 

 

33

 

 

 

 

32

 

 

 

$

2.03

 

 

$

1.73

 

 

 

17

 

 

 

 

20

 

 

Effective tax rate

 

 

27.3

%

 

 

27.5

%

 

 

 

 

 

 

 

 

 

 

26.6

%

 

 

27.2

%

 

 

 

 

 

 

 

 

Supplementary information
   – Non-GAAP Measures(b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant profit

 

$

494

 

 

$

470

 

 

 

5

 

 

 

 

4

 

 

 

$

1,378

 

 

$

1,437

 

 

 

(4

)

 

 

 

(2

)

 

Restaurant margin %

 

 

17.0

%

 

 

17.0

%

 

 

—

 

ppts.

 

 

—

 

ppts.

 

 

16.8

%

 

 

17.9

%

 

 

(1.1

)

ppts.

 

 

(1.1

)

ppts.

Adjusted Operating Profit

 

$

371

 

 

$

327

 

 

 

 

 

 

 

 

 

 

$

1,011

 

 

$

1,005

 

 

 

 

 

 

 

 

 

Core Operating Profit

 

$

369

 

 

$

312

 

 

 

 

 

 

 

 

 

 

$

1,040

 

 

$

951

 

 

 

 

 

 

 

 

 

Core OP Margin %

 

 

12.1

%

 

 

10.7

%

 

 

 

 

 

 

 

 

 

 

11.7

%

 

 

11.2

%

 

 

 

 

 

 

 

 

Adjusted Net Income – Yum China
   Holdings, Inc.

 

$

297

 

 

$

248

 

 

 

 

 

 

 

 

 

 

$

796

 

 

$

739

 

 

 

 

 

 

 

 

 

Adjusted Diluted Earnings Per
   Common Share

 

$

0.77

 

 

$

0.59

 

 

 

 

 

 

 

 

 

 

$

2.03

 

 

$

1.75

 

 

 

 

 

 

 

 

 

Adjusted Effective Tax Rate

 

 

27.3

%

 

 

27.2

%

 

 

 

 

 

 

 

 

 

 

26.6

%

 

 

27.0

%

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

501

 

 

$

441

 

 

 

 

 

 

 

 

 

 

$

1,395

 

 

$

1,368

 

 

 

 

 

 

 

 

 

 

(a)
Represents the period-over-period change in percentage.
(b)
See “Non-GAAP Measures” below for definitions and reconciliations of the most directly comparable GAAP financial measures to the non-GAAP measures.

 

Performance Metrics

 

 

 

Quarter Ended 9/30/2024

 

 

Year to Date Ended 9/30/2024

 

 

 

% change

 

 

% change

 

System Sales Growth

 

 

5

%

 

 

2

%

System Sales Growth, excluding F/X

 

 

4

%

 

 

5

%

Same-Store Sales (Decline)

 

 

(3

)%

 

 

(3

)%

 

Unit Count

 

9/30/2024

 

 

9/30/2023

 

 

% Increase

 

Company-owned

 

 

13,571

 

 

 

12,192

 

 

 

11

 

Franchisees

 

 

2,290

 

 

 

1,910

 

 

 

20

 

 

 

 

15,861

 

 

 

14,102

 

 

 

12

 

 

27

 

Non-GAAP Measures

 

In addition to the results provided in accordance with GAAP throughout this MD&A, the Company provides the following non-GAAP measures:

•
Measures adjusted for Special Items, which include Adjusted Operating Profit, Adjusted Net Income, Adjusted Earnings Per Common Share (“EPS”), Adjusted Effective Tax Rate and Adjusted EBITDA;
•
Company Restaurant Profit (“Restaurant profit”) and Restaurant margin;
•
Core Operating Profit and Core OP margin, which exclude Special Items, and further adjusted for Items Affecting Comparability and the impact of F/X;

 

These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measures provides additional information to investors to facilitate the comparison of past and present results, excluding those items that the Company does not believe are indicative of our core operations.

 

With respect to non-GAAP measures adjusted for Special Items, the Company excludes impact from Special Items for the purpose of evaluating performance internally and uses them as factors in determining compensation for certain employees. Special Items are not included in any of our segment results.

 

Adjusted EBITDA is defined as net income including noncontrolling interests adjusted for equity in net earnings (losses) from equity method investments, income tax, interest income, net, investment gain or loss, depreciation and amortization, store impairment charges, and Special Items. Store impairment charges included as an adjustment item in Adjusted EBITDA primarily resulted from our semi-annual impairment evaluation of long-lived assets of individual restaurants, and additional impairment evaluation whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If these restaurant-level assets were not impaired, depreciation of the assets would have been recorded and included in EBITDA. Therefore, store impairment charges were a non-cash item similar to depreciation and amortization of our long-lived assets of restaurants. The Company believes that investors and analysts may find it useful in measuring operating performance without regard to such non-cash items.

 

Restaurant profit is defined as Company sales less expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, restaurant-level payroll and employee benefits, rent, depreciation and amortization of restaurant-level assets, advertising expenses, and other operating expenses. Company restaurant margin percentage is defined as Restaurant profit divided by Company sales. We also use Restaurant profit and Restaurant margin for the purpose of internally evaluating the performance of our Company-owned restaurants and we believe they provide useful information to investors as to the profitability of our Company-owned restaurants.

 

Core Operating Profit is defined as Operating Profit adjusted for Special Items, and further excluding Items Affecting Comparability and the impact of F/X. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Items such as charges, gains and accounting changes, which are viewed by management as significantly impacting the current period or the comparable period, due to changes in policy or other external factors, or non-cash items pertaining to underlying activities that are different from or unrelated to our core operations, are generally considered “Items Affecting Comparability.” Examples of Items Affecting Comparability include, but are not limited to: temporary relief from landlords and government agencies; VAT deductions due to tax policy changes; and amortization of reacquired franchise rights recognized upon acquisitions. We believe presenting Core Operating Profit provides additional information to further enhance comparability of our operating results and we use this measure for purposes of evaluating the performance of our core operations. Core OP margin is defined as Core Operating Profit divided by Total revenues, excluding the impact of F/X.

 

28

The following table sets forth the reconciliations of the most directly comparable GAAP financial measures to the non-GAAP financial measures:

 

 

 

Quarter Ended

 

 

Year to Date Ended

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Operating Profit to Adjusted Operating Profit

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

$

371

 

 

$

323

 

 

$

1,011

 

 

$

996

 

Special Items, Operating Profit

 

 

—

 

 

 

(4

)

 

 

—

 

 

 

(9

)

Adjusted Operating Profit

 

$

371

 

 

$

327

 

 

$

1,011

 

 

$

1,005

 

Reconciliation of Net Income to Adjusted Net Income

 

 

 

 

 

 

 

 

 

 

 

 

Net Income – Yum China Holdings, Inc.

 

$

297

 

 

$

244

 

 

$

796

 

 

$

730

 

Special Items, Net Income –Yum China Holdings, Inc.

 

 

—

 

 

 

(4

)

 

 

—

 

 

 

(9

)

Adjusted Net Income – Yum China Holdings, Inc.

 

$

297

 

 

$

248

 

 

$

796

 

 

$

739

 

Reconciliation of EPS to Adjusted EPS

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

$

0.77

 

 

$

0.59

 

 

$

2.04

 

 

$

1.75

 

Special Items, Basic Earnings Per Common Share

 

 

—

 

 

 

(0.01

)

 

 

—

 

 

 

(0.02

)

Adjusted Basic Earnings Per Common Share

 

$

0.77

 

 

$

0.60

 

 

$

2.04

 

 

$

1.77

 

Diluted Earnings Per Common Share

 

$

0.77

 

 

$

0.58

 

 

$

2.03

 

 

$

1.73

 

Special Items, Diluted Earnings Per Common Share

 

 

—

 

 

 

(0.01

)

 

 

—

 

 

 

(0.02

)

Adjusted Diluted Earnings Per Common Share

 

$

0.77

 

 

$

0.59

 

 

$

2.03

 

 

$

1.75

 

Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

27.3

%

 

 

27.5

%

 

 

26.6

%

 

 

27.2

%

Impact on effective tax rate as a result of Special Items

 

 

—

 

 

 

0.3

%

 

 

—

 

 

 

0.2

%

Adjusted effective tax rate

 

 

27.3

%

 

 

27.2

%

 

 

26.6

%

 

 

27.0

%

 

Net income, along with the reconciliation to Adjusted EBITDA, is presented below:

 

 

 

Quarter Ended

 

 

Year to Date Ended

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income – Yum China Holdings, Inc.

 

$

297

 

 

$

244

 

 

$

796

 

 

$

730

 

Net income – noncontrolling interests

 

 

22

 

 

 

23

 

 

 

58

 

 

 

64

 

Equity in net (earnings) losses from equity method investments

 

 

(2

)

 

 

(2

)

 

 

(2

)

 

 

(2

)

Income tax provision

 

 

119

 

 

 

100

 

 

 

309

 

 

 

296

 

Interest income, net

 

 

(31

)

 

 

(46

)

 

 

(100

)

 

 

(124

)

Investment (gain) loss

 

 

(34

)

 

 

4

 

 

 

(50

)

 

 

32

 

Operating Profit

 

 

371

 

 

 

323

 

 

 

1,011

 

 

 

996

 

Special Items, Operating Profit

 

 

—

 

 

 

4

 

 

 

—

 

 

 

9

 

Adjusted Operating Profit

 

 

371

 

 

 

327

 

 

 

1,011

 

 

 

1,005

 

Depreciation and amortization

 

 

120

 

 

 

111

 

 

 

355

 

 

 

339

 

Store impairment charges

 

 

10

 

 

 

3

 

 

 

29

 

 

 

24

 

Adjusted EBITDA

 

$

501

 

 

$

441

 

 

$

1,395

 

 

$

1,368

 

 

Details of Special Items are presented below:

 

 

 

Quarter Ended

 

 

Year to Date Ended

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense for Partner PSU Awards(1)

 

$

—

 

 

$

(4

)

 

$

—

 

 

$

(9

)

Special Items, Operating Profit

 

 

—

 

 

 

(4

)

 

 

—

 

 

 

(9

)

Tax effect on Special Items(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Special Items, net income – including noncontrolling interests

 

 

—

 

 

 

(4

)

 

 

—

 

 

 

(9

)

Special Items, net income – noncontrolling interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Special Items, Net Income –Yum China Holdings, Inc.

 

$

—

 

 

$

(4

)

 

$

—

 

 

$

(9

)

Weighted-average Diluted Shares Outstanding (in millions)

 

 

385

 

 

 

420

 

 

 

393

 

 

 

421

 

Special Items, Diluted Earnings Per Common Share

 

$

—

 

 

$

(0.01

)

 

$

—

 

 

$

(0.02

)

 

29

(1)
In February 2020, the Company granted Partner PSU Awards to select employees who were deemed critical to the Company’s execution of its strategic operating plan. These PSU awards will only vest if threshold performance goals are achieved over a four-year performance period, with the payout ranging from 0% to 200% of the target number of shares subject to the PSU awards. These awards vested as of December 31, 2023 with a payout in the first quarter of 2024. Partner PSU Awards were granted to address increased competition for executive talent, motivate transformational performance and encourage management retention. Given the unique nature of these grants, the Compensation Committee does not intend to grant similar special grants to the same employees during the performance period. The impact from these special awards is excluded from metrics that management uses to assess the Company’s performance.
(2)
Tax effect was determined based upon the nature, as well as the jurisdiction, of each Special Item at the applicable tax rate.

 

Reconciliation of GAAP Operating Profit to Restaurant Profit is as follows:

 

 

 

Quarter Ended 9/30/2024

 

 

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate
and
Unallocated

 

 

Elimination

 

 

Total

 

GAAP Operating Profit (Loss)

 

$

364

 

 

$

52

 

 

$

(4

)

 

$

(41

)

 

$

—

 

 

$

371

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise fees and income

 

 

19

 

 

 

2

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

25

 

Revenues from transactions with franchisees

 

 

15

 

 

 

2

 

 

 

19

 

 

 

80

 

 

 

—

 

 

 

116

 

Other revenues

 

 

1

 

 

 

5

 

 

 

176

 

 

 

17

 

 

 

(164

)

 

 

35

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

62

 

 

 

26

 

 

 

9

 

 

 

42

 

 

 

—

 

 

 

139

 

Franchise expenses

 

 

8

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

10

 

Expenses for transactions with franchisees

 

 

13

 

 

 

1

 

 

 

17

 

 

 

79

 

 

 

—

 

 

 

110

 

Other operating costs and expenses

 

 

1

 

 

 

5

 

 

 

172

 

 

 

17

 

 

 

(163

)

 

 

32

 

Closures and impairment expenses, net

 

 

4

 

 

 

1

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

8

 

Restaurant profit (loss)

 

$

417

 

 

$

77

 

 

$

(1

)

 

$

—

 

 

$

1

 

 

$

494

 

Company sales

 

 

2,276

 

 

 

606

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

2,895

 

Restaurant margin %

 

 

18.3

%

 

 

12.8

%

 

 

(13.2

)%

 

N/A

 

 

N/A

 

 

 

17.0

%

 

 

 

Quarter Ended 9/30/2023

 

 

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate
and
Unallocated

 

 

Elimination

 

 

Total

 

GAAP Operating Profit (Loss)

 

$

342

 

 

$

47

 

 

$

(7

)

 

$

(59

)

 

$

—

 

 

$

323

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise fees and income

 

 

16

 

 

 

2

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

23

 

Revenues from transactions with franchisees

 

 

12

 

 

 

1

 

 

 

20

 

 

 

67

 

 

 

—

 

 

 

100

 

Other revenues

 

 

4

 

 

 

5

 

 

 

162

 

 

 

12

 

 

 

(151

)

 

 

32

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

68

 

 

 

30

 

 

 

11

 

 

 

60

 

 

 

—

 

 

 

169

 

Franchise expenses

 

 

8

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9

 

Expenses for transactions with franchisees

 

 

11

 

 

 

1

 

 

 

17

 

 

 

66

 

 

 

—

 

 

 

95

 

Other operating costs and expenses

 

 

3

 

 

 

4

 

 

 

160

 

 

 

12

 

 

 

(150

)

 

 

29

 

Restaurant profit (loss)

 

$

400

 

 

$

75

 

 

$

(6

)

 

$

—

 

 

$

1

 

 

$

470

 

Company sales

 

 

2,154

 

 

 

591

 

 

 

14

 

 

 

—

 

 

 

—

 

 

 

2,759

 

Restaurant margin %

 

 

18.6

%

 

 

12.7

%

 

 

(36.1

)%

 

N/A

 

 

N/A

 

 

 

17.0

%

 

30

 

 

Year to Date Ended 9/30/2024

 

 

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate
and
Unallocated

 

 

Elimination

 

 

Total

 

GAAP Operating Profit (Loss)

 

$

1,000

 

 

$

139

 

 

$

(12

)

 

$

(116

)

 

$

—

 

 

$

1,011

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise fees and income

 

 

53

 

 

 

6

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

72

 

Revenues from transactions with franchisees

 

 

41

 

 

 

4

 

 

 

55

 

 

 

219

 

 

 

—

 

 

 

319

 

Other revenues

 

 

9

 

 

 

17

 

 

 

484

 

 

 

48

 

 

 

(458

)

 

 

100

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

183

 

 

 

80

 

 

 

29

 

 

 

120

 

 

 

—

 

 

 

412

 

Franchise expenses

 

 

25

 

 

 

3

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

29

 

Expenses for transactions with franchisees

 

 

36

 

 

 

3

 

 

 

50

 

 

 

217

 

 

 

—

 

 

 

306

 

Other operating costs and expenses

 

 

7

 

 

 

16

 

 

 

476

 

 

 

47

 

 

 

(456

)

 

 

90

 

Closures and impairment expenses, net

 

 

11

 

 

 

6

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

22

 

Other income, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(1

)

Restaurant profit (loss)

 

$

1,159

 

 

$

220

 

 

$

(3

)

 

$

—

 

 

$

2

 

 

$

1,378

 

Company sales

 

 

6,452

 

 

 

1,723

 

 

 

42

 

 

 

—

 

 

 

—

 

 

 

8,217

 

Restaurant margin %

 

 

18.0

%

 

 

12.8

%

 

 

(11.8

)%

 

N/A

 

 

N/A

 

 

 

16.8

%

 

 

 

Year to Date Ended 9/30/2023

 

 

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate
and
Unallocated

 

 

Elimination

 

 

Total

 

GAAP Operating Profit (Loss)

 

$

1,035

 

 

$

137

 

 

$

(20

)

 

$

(156

)

 

$

—

 

 

$

996

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise fees and income

 

 

48

 

 

 

6

 

 

 

15

 

 

 

—

 

 

 

—

 

 

 

69

 

Revenues from transactions with franchisees

 

 

33

 

 

 

3

 

 

 

56

 

 

 

190

 

 

 

—

 

 

 

282

 

Other revenues

 

 

13

 

 

 

13

 

 

 

468

 

 

 

32

 

 

 

(440

)

 

 

86

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

203

 

 

 

89

 

 

 

32

 

 

 

161

 

 

 

—

 

 

 

485

 

Franchise expenses

 

 

24

 

 

 

3

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

28

 

Expenses for transactions with franchisees

 

 

29

 

 

 

3

 

 

 

50

 

 

 

188

 

 

 

—

 

 

 

270

 

Other operating costs and expenses

 

 

11

 

 

 

11

 

 

 

463

 

 

 

30

 

 

 

(438

)

 

 

77

 

Closures and impairment expenses, net

 

 

9

 

 

 

5

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

17

 

Other expenses (income), net

 

 

2

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

1

 

Restaurant profit (loss)

 

$

1,219

 

 

$

226

 

 

$

(10

)

 

$

—

 

 

$

2

 

 

$

1,437

 

Company sales

 

 

6,274

 

 

 

1,728

 

 

 

46

 

 

 

—

 

 

 

—

 

 

 

8,048

 

Restaurant margin %

 

 

19.4

%

 

 

13.1

%

 

 

(21.6

)%

 

N/A

 

 

N/A

 

 

 

17.9

%

 

Reconciliation of GAAP Operating Profit to Core Operating Profit is as follows:

 

 

Quarter ended

 

 

% Change

 

Year to Date Ended

 

 

% Change

 

9/30/2024

 

 

9/30/2023

 

 

B/(W)

 

9/30/2024

 

 

9/30/2023

 

 

B/(W)

Operating profit

$

371

 

 

$

323

 

 

 

15

 

 

 

$

1,011

 

 

$

996

 

 

 

1

 

 

Special Items, Operating Profit

 

—

 

 

 

4

 

 

 

 

 

 

 

—

 

 

 

9

 

 

 

 

 

Adjusted Operating Profit

$

371

 

 

$

327

 

 

 

13

 

 

 

$

1,011

 

 

$

1,005

 

 

 

1

 

 

Items Affecting Comparability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Temporary relief from landlords(a)

 

—

 

 

 

—

 

 

 

 

 

 

 

—

 

 

 

(10

)

 

 

 

 

Temporary relief from government agencies(b)

 

—

 

 

 

(1

)

 

 

 

 

 

 

—

 

 

 

(4

)

 

 

 

 

VAT deductions(c)

 

—

 

 

 

(14

)

 

 

 

 

 

 

—

 

 

 

(42

)

 

 

 

 

Amortization of reacquired franchise rights(d)

 

—

 

 

 

—

 

 

 

 

 

 

 

—

 

 

 

2

 

 

 

 

 

F/X impact

 

(2

)

 

 

—

 

 

 

 

 

 

 

29

 

 

 

—

 

 

 

 

 

Core Operating Profit

$

369

 

 

$

312

 

 

 

18

 

 

 

$

1,040

 

 

$

951

 

 

 

10

 

 

Total revenues

 

3,071

 

 

 

2,914

 

 

 

5

 

 

 

 

8,708

 

 

 

8,485

 

 

 

3

 

 

F/X impact

 

(31

)

 

 

—

 

 

 

 

 

 

 

208

 

 

 

—

 

 

 

 

 

Total revenues, excluding the impact of F/X

$

3,040

 

 

$

2,914

 

 

 

4

 

 

 

$

8,916

 

 

$

8,485

 

 

 

5

 

 

Core OP margin %

 

12.1

%

 

 

10.7

%

 

 

1.4

 

ppts.

 

 

11.7

%

 

 

11.2

%

 

 

0.5

 

ppts.

 

Details of Items Affecting Comparability are presented below:

(a)
In relation to the effects of the COVID-19 pandemic, the Company was granted lease concessions from landlords. The lease concessions were primarily in the form of rent reduction over the period of time when the Company’s restaurant business was adversely impacted. Such concessions were primarily recognized as a reduction of Occupancy and other operating expenses within Company restaurant expenses included in the Condensed Consolidated Statement of Income in the period the concession was granted. See Note 10 for additional information.

31

(b)
In relation to the effects of the COVID-19 pandemic, the Company received government subsidies for employee benefits and providing training to employees. The temporary relief was primarily recognized as a reduction to Payroll and employee benefits within Company restaurant expenses included in the Condensed Consolidated Statement of Income.
(c)
Pursuant to the tax policy issued by relevant government authorities, general VAT taxpayers in certain industries that meet certain criteria are allowed to claim an additional 10% or 15% input VAT, which will be used to offset their VAT payables. This VAT policy was further extended to December 31, 2023 but the additional deduction was reduced to 5% or 10% respectively. VAT deductions were primarily recorded as a reduction to Food and paper and Occupancy and other operating expenses within Company restaurant expenses included in the Condensed Consolidated Statements of Income. Such preferential policy was not extended in 2024. See “Significant Known Events, Trends or Uncertainties Expected to Impact Future Results” session within MD&A for additional information on VAT deductions.
(d)
As a result of the acquisition of our previously unconsolidated joint ventures of Hangzhou KFC, Suzhou KFC and Wuxi KFC, $66 million, $61 million and $61 million of the purchase price were allocated to intangible assets related to reacquired franchise rights, respectively, which were amortized over the remaining franchise contract period of 1 year, 2.4 years and 5 years, respectively. The reacquired franchise rights were fully amortized as of March 31, 2023. The amortization was recorded in Other (income) expenses, net included in the Condensed Consolidated Statements of Income.

 

Reconciliation of GAAP Operating Profit to Core Operating Profit by segment is as follows:

 

 

 

Quarter Ended 9/30/2024

 

 

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate
and
Unallocated

 

 

Elimination

 

 

Total

 

GAAP Operating Profit (Loss)

 

$

364

 

 

$

52

 

 

$

(4

)

 

$

(41

)

 

$

—

 

 

$

371

 

Special Items, Operating Profit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted Operating Profit (Loss)

 

$

364

 

 

$

52

 

 

$

(4

)

 

$

(41

)

 

$

—

 

 

$

371

 

F/X impact

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Core Operating Profit (Loss)

 

$

362

 

 

$

52

 

 

$

(4

)

 

$

(41

)

 

$

—

 

 

$

369

 

 

 

 

Quarter Ended 9/30/2023

 

 

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate
and
Unallocated

 

 

Elimination

 

 

Total

 

GAAP Operating Profit (Loss)

 

$

342

 

 

$

47

 

 

$

(7

)

 

$

(59

)

 

$

—

 

 

$

323

 

Special Items, Operating Profit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

4

 

Adjusted Operating Profit (Loss)

 

$

342

 

 

$

47

 

 

$

(7

)

 

$

(55

)

 

$

—

 

 

$

327

 

Items Affecting Comparability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Temporary relief from landlords

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Temporary relief from government agencies

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

VAT deductions

 

 

(10

)

 

 

(3

)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(14

)

F/X impact

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Core Operating Profit (Loss)

 

$

332

 

 

$

43

 

 

$

(8

)

 

$

(55

)

 

$

—

 

 

$

312

 

 

 

 

Year to Date Ended 9/30/2024

 

 

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate
and
Unallocated

 

 

Elimination

 

 

Total

 

GAAP Operating Profit (Loss)

 

$

1,000

 

 

$

139

 

 

$

(12

)

 

$

(116

)

 

$

—

 

 

$

1,011

 

Special Items, Operating Profit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted Operating Profit (Loss)

 

$

1,000

 

 

$

139

 

 

$

(12

)

 

$

(116

)

 

$

—

 

 

$

1,011

 

F/X impact

 

 

27

 

 

 

4

 

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

29

 

Core Operating Profit (Loss)

 

$

1,027

 

 

$

143

 

 

$

(12

)

 

$

(118

)

 

$

—

 

 

$

1,040

 

 

32

 

 

 

Year to Date Ended 9/30/2023

 

 

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate
and
Unallocated

 

 

Elimination

 

 

Total

 

GAAP Operating Profit (Loss)

 

$

1,035

 

 

$

137

 

 

$

(20

)

 

$

(156

)

 

$

—

 

 

$

996

 

Special Items, Operating Profit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

9

 

Adjusted Operating Profit (Loss)

 

$

1,035

 

 

$

137

 

 

$

(20

)

 

$

(147

)

 

$

—

 

 

$

1,005

 

Items Affecting Comparability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Temporary relief from landlords

 

 

(9

)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10

)

Temporary relief from government agencies

 

 

(3

)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4

)

VAT deductions

 

 

(34

)

 

 

(6

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

(42

)

Amortization of reacquired franchise rights

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

F/X impact

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Core Operating Profit (Loss)

 

$

991

 

 

$

129

 

 

$

(22

)

 

$

(147

)

 

$

—

 

 

$

951

 

 

Segment Results

 

KFC

 

 

 

Quarter Ended

 

Year to Date Ended

 

 

 

 

 

 

 

 

% B/(W)

 

 

 

 

 

 

 

% B/(W)

 

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

Company sales

 

$

2,276

 

 

$

2,154

 

 

 

6

 

 

 

 

5

 

 

 

$

6,452

 

 

$

6,274

 

 

 

3

 

 

 

 

5

 

 

Franchise fees and income

 

 

19

 

 

 

16

 

 

 

15

 

 

 

 

14

 

 

 

 

53

 

 

 

48

 

 

 

10

 

 

 

 

12

 

 

Revenues from transactions with
   franchisees

 

 

15

 

 

 

12

 

 

 

23

 

 

 

 

22

 

 

 

 

41

 

 

 

33

 

 

 

25

 

 

 

 

28

 

 

Other revenues

 

 

1

 

 

 

4

 

 

 

(63

)

 

 

 

(63

)

 

 

 

9

 

 

 

13

 

 

 

(29

)

 

 

 

(27

)

 

Total revenues

 

$

2,311

 

 

$

2,186

 

 

 

6

 

 

 

 

5

 

 

 

$

6,555

 

 

$

6,368

 

 

 

3

 

 

 

 

5

 

 

Company restaurant expenses

 

$

1,859

 

 

$

1,754

 

 

 

(6

)

 

 

 

(5

)

 

 

$

5,293

 

 

$

5,055

 

 

 

(5

)

 

 

 

(7

)

 

G&A expenses

 

$

62

 

 

$

68

 

 

 

10

 

 

 

 

11

 

 

 

$

183

 

 

$

203

 

 

 

10

 

 

 

 

8

 

 

Franchise expenses

 

$

8

 

 

$

8

 

 

 

(10

)

 

 

 

(9

)

 

 

$

25

 

 

$

24

 

 

 

(6

)

 

 

 

(8

)

 

Expenses for transactions with
   franchisees

 

$

13

 

 

$

11

 

 

 

(19

)

 

 

 

(17

)

 

 

$

36

 

 

$

29

 

 

 

(21

)

 

 

 

(23

)

 

Other operating costs and expenses

 

$

1

 

 

$

3

 

 

 

76

 

 

 

 

76

 

 

 

$

7

 

 

$

11

 

 

 

37

 

 

 

 

35

 

 

Closures and impairment
   expenses, net

 

$

4

 

 

$

—

 

 

NM

 

 

 

NM

 

 

 

$

11

 

 

$

9

 

 

 

(33

)

 

 

 

(35

)

 

Other expenses, net

 

$

—

 

 

$

—

 

 

 

(151

)

 

 

 

(146

)

 

 

$

—

 

 

$

2

 

 

 

76

 

 

 

 

75

 

 

Operating Profit

 

$

364

 

 

$

342

 

 

 

6

 

 

 

 

6

 

 

 

$

1,000

 

 

$

1,035

 

 

 

(3

)

 

 

 

(1

)

 

OP Margin %

 

 

15.7

%

 

 

15.6

%

 

 

0.1

 

ppts.

 

 

0.2

 

ppts.

 

 

15.2

%

 

 

16.3

%

 

 

(1.1

)

ppts.

 

 

(1.0

)

ppts.

Restaurant profit

 

$

417

 

 

$

400

 

 

 

4

 

 

 

 

3

 

 

 

$

1,159

 

 

$

1,219

 

 

 

(5

)

 

 

 

(2

)

 

Restaurant margin %

 

 

18.3

%

 

 

18.6

%

 

 

(0.3

)

ppts.

 

 

(0.3

)

ppts.

 

 

18.0

%

 

 

19.4

%

 

 

(1.4

)

ppts.

 

 

(1.4

)

ppts.

 

 

 

Quarter Ended 9/30/2024

 

 

Year to Date Ended 9/30/2024

 

 

 

% change

 

 

% change

 

System Sales Growth

 

 

7

%

 

 

4

%

System Sales Growth, excluding F/X

 

 

6

%

 

 

6

%

Same-Store Sales (Decline)

 

 

(2

)%

 

 

(2

)%

 

Unit Count

 

9/30/2024

 

 

9/30/2023

 

 

% Increase

 

Company-owned

 

 

9,958

 

 

 

8,915

 

 

 

12

 

Franchisees

 

 

1,325

 

 

 

1,002

 

 

 

32

 

 

 

 

11,283

 

 

 

9,917

 

 

 

14

 

 

33

Company Sales and Restaurant Profit

 

The changes in Company sales and Restaurant profit were as follows:

 

 

Quarter Ended

 

Income (Expense)

9/30/2023

 

 

Store
Portfolio
Actions

 

 

Other

 

 

F/X

 

 

9/30/2024

 

Company sales

$

2,154

 

 

$

135

 

 

$

(35

)

 

$

22

 

 

$

2,276

 

Cost of sales

 

(666

)

 

 

(47

)

 

 

7

 

 

 

(7

)

 

 

(713

)

Cost of labor

 

(528

)

 

 

(34

)

 

 

10

 

 

 

(6

)

 

 

(558

)

Occupancy and other operating expenses

 

(560

)

 

 

(35

)

 

 

13

 

 

 

(6

)

 

 

(588

)

Restaurant profit

$

400

 

 

$

19

 

 

$

(5

)

 

$

3

 

 

$

417

 

 

 

Year to Date Ended

 

Income (Expense)

9/30/2023

 

 

Store
Portfolio
Actions

 

 

Other

 

 

F/X

 

 

9/30/2024

 

Company sales

$

6,274

 

 

$

446

 

 

$

(114

)

 

$

(154

)

 

$

6,452

 

Cost of sales

 

(1,914

)

 

 

(154

)

 

 

(13

)

 

 

48

 

 

 

(2,033

)

Cost of labor

 

(1,538

)

 

 

(121

)

 

 

9

 

 

 

37

 

 

 

(1,613

)

Occupancy and other operating expenses

 

(1,603

)

 

 

(112

)

 

 

30

 

 

 

38

 

 

 

(1,647

)

Restaurant profit

$

1,219

 

 

$

59

 

 

$

(88

)

 

$

(31

)

 

$

1,159

 

 

As compared to the third quarter of 2023, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth, partially offset by same-store sales decline. Restaurant profit increased for the quarter, excluding the impact of F/X. Further excluding the lapping impact from the VAT deductions and temporary relief from landlords and government agencies received in prior year, the increase in Restaurant profit for the quarter was primarily driven by the increase in Company sales, operational efficiency improvement, favorable commodity prices and lower advertising expenses, partially offset by increased value-for-money offerings and wage inflation in the low single digits.

 

The increase in Company sales for the year to date ended September 30, 2024, excluding the impact of F/X, was primarily driven by net unit growth, partially offset by same-store sales decline. Restaurant profit decreased for the year to date, excluding the impact of F/X. Further excluding the lapping impact from the VAT deductions and temporary relief from landlords and government agencies received in prior year, Restaurant profit increased for the year to date, primarily driven by the increase in Company sales, favorable commodity prices, operational efficiency improvement and lower advertising expenses, offset by increased value-for-money offerings and wage inflation in the low single digits.

 

Franchise Fees and Income/Revenues from Transactions with Franchisees

 

The quarter and year to date increase in Franchise fees and income and Revenues from transactions with franchisees, excluding the impact of F/X, was primarily driven by acceleration of franchise store openings.

 

G&A Expenses

 

The quarter and year to date decrease in G&A expenses, excluding the impact of F/X, was primarily driven by lower performance-based compensation costs.

 

Operating Profit

 

The increase in Operating profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower G&A expenses.

 

The year to date decrease in Operating profit, excluding the impact of F/X, was primarily driven by the decrease in Restaurant profit, partially offset by lower G&A expenses.

 

34

Pizza Hut

 

 

 

Quarter Ended

 

Year to Date Ended

 

 

 

 

 

 

 

 

% B/(W)

 

 

 

 

 

 

 

 

 

% B/(W)

 

 

 

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

Company sales

 

$

606

 

 

$

591

 

 

 

2

 

 

 

 

1

 

 

 

$

1,723

 

 

$

1,728

 

 

 

—

 

 

 

 

2

 

 

Franchise fees and income

 

 

2

 

 

 

2

 

 

 

8

 

 

 

 

7

 

 

 

 

6

 

 

 

6

 

 

 

4

 

 

 

 

6

 

 

Revenues from transactions with
   franchisees

 

 

2

 

 

 

1

 

 

 

20

 

 

 

 

19

 

 

 

 

4

 

 

 

3

 

 

 

7

 

 

 

 

9

 

 

Other revenues

 

 

5

 

 

 

5

 

 

 

(4

)

 

 

 

(5

)

 

 

 

17

 

 

 

13

 

 

 

30

 

 

 

 

32

 

 

Total revenues

 

$

615

 

 

$

599

 

 

 

2

 

 

 

 

1

 

 

 

$

1,750

 

 

$

1,750

 

 

 

—

 

 

 

 

2

 

 

Company restaurant expenses

 

$

529

 

 

$

516

 

 

 

(2

)

 

 

 

(1

)

 

 

$

1,503

 

 

$

1,502

 

 

 

—

 

 

 

 

(2

)

 

G&A expenses

 

$

26

 

 

$

30

 

 

 

15

 

 

 

 

16

 

 

 

$

80

 

 

$

89

 

 

 

11

 

 

 

 

9

 

 

Franchise expenses

 

$

1

 

 

$

1

 

 

 

(6

)

 

 

 

(5

)

 

 

$

3

 

 

$

3

 

 

 

(3

)

 

 

 

(5

)

 

Expenses for transactions with
   franchisees

 

$

1

 

 

$

1

 

 

 

(6

)

 

 

 

(5

)

 

 

$

3

 

 

$

3

 

 

 

2

 

 

 

 

—

 

 

Other operating costs and expenses

 

$

5

 

 

$

4

 

 

 

(7

)

 

 

 

(6

)

 

 

$

16

 

 

$

11

 

 

 

(43

)

 

 

 

(46

)

 

Closures and impairment
   expenses, net

 

$

1

 

 

$

—

 

 

NM

 

 

 

NM

 

 

 

$

6

 

 

$

5

 

 

 

(17

)

 

 

 

(19

)

 

Operating Profit

 

$

52

 

 

$

47

 

 

 

13

 

 

 

 

13

 

 

 

$

139

 

 

$

137

 

 

 

2

 

 

 

 

5

 

 

OP Margin %

 

 

8.6

%

 

 

7.8

%

 

 

0.8

 

ppts.

 

 

0.8

 

ppts.

 

 

8.0

%

 

 

7.8

%

 

 

0.2

 

ppts.

 

 

0.2

 

ppts.

Restaurant profit

 

$

77

 

 

$

75

 

 

 

3

 

 

 

 

3

 

 

 

$

220

 

 

$

226

 

 

 

(2

)

 

 

 

—

 

 

Restaurant margin %

 

 

12.8

%

 

 

12.7

%

 

 

0.1

 

ppts.

 

 

0.1

 

ppts.

 

 

12.8

%

 

 

13.1

%

 

 

(0.3

)

ppts.

 

 

(0.3

)

ppts.

 

 

 

Quarter Ended 9/30/2024

 

 

Year to Date Ended 9/30/2024

 

 

 

% change

 

 

% change

 

System Sales Growth

 

 

3

%

 

 

—

 

System Sales Growth, excluding F/X

 

 

2

%

 

 

2

%

Same-Store Sales (Decline)

 

 

(6

)%

 

 

(6

)%

 

Unit Count

 

9/30/2024

 

 

9/30/2023

 

 

% Increase

 

Company-owned

 

 

3,428

 

 

 

3,047

 

 

 

13

 

Franchisees

 

 

178

 

 

 

155

 

 

 

15

 

 

 

 

3,606

 

 

 

3,202

 

 

 

13

 

 

Company Sales and Restaurant Profit

 

The changes in Company sales and Restaurant profit were as follows:

 

 

Quarter Ended

 

Income (Expense)

9/30/2023

 

 

Store
Portfolio
Actions

 

 

Other

 

 

F/X

 

 

9/30/2024

 

Company sales

$

591

 

 

$

35

 

 

$

(27

)

 

$

7

 

 

$

606

 

Cost of sales

 

(187

)

 

 

(12

)

 

 

—

 

 

 

(3

)

 

 

(202

)

Cost of labor

 

(167

)

 

 

(9

)

 

 

11

 

 

 

(2

)

 

 

(167

)

Occupancy and other operating expenses

 

(162

)

 

 

(9

)

 

 

13

 

 

 

(2

)

 

 

(160

)

Restaurant profit

$

75

 

 

$

5

 

 

$

(3

)

 

$

—

 

 

$

77

 

 

 

Year to Date Ended

 

Income (Expense)

9/30/2023

 

 

Store
Portfolio
Actions

 

 

Other

 

 

F/X

 

 

9/30/2024

 

Company sales

$

1,728

 

 

$

127

 

 

$

(92

)

 

$

(40

)

 

$

1,723

 

Cost of sales

 

(537

)

 

 

(43

)

 

 

1

 

 

 

12

 

 

 

(567

)

Cost of labor

 

(496

)

 

 

(34

)

 

 

40

 

 

 

11

 

 

 

(479

)

Occupancy and other operating expenses

 

(469

)

 

 

(32

)

 

 

33

 

 

 

11

 

 

 

(457

)

Restaurant profit

$

226

 

 

$

18

 

 

$

(18

)

 

$

(6

)

 

$

220

 

 

35

As compared to the third quarter of 2023, the increase in Company sales for the quarter, excluding the impact of F/X, was primarily driven by net unit growth, partially offset by same-store sales decline. Restaurant profit increased for the quarter, excluding the impact of F/X. Further excluding the lapping impact from the VAT deductions and temporary relief from landlords and government agencies received in prior year, the increase in Restaurant profit for the quarter was primarily driven by the increase in Company sales, operational efficiency improvement, favorable commodity prices, lower advertising expenses and lower performance-based compensation, partially offset by increased value-for-money offerings, increased rider cost associated with higher delivery sales mix in the current period and wage inflation in the low single digits.

 

The increase in Company sales for the year to date ended September 30, 2024, excluding the impact of F/X, was primarily driven by net unit growth, partially offset by same-store sales decline. Restaurant profit remained flat for the year to date, excluding the impact of F/X. Further excluding the lapping impact from the VAT deductions and temporary relief from landlords and government agencies received in prior year, Restaurant profit increased for the year to date, primarily driven by the increase in Company sales, operational efficiency improvement, favorable commodity prices, lower advertising expenses and lower performance-based compensation, offset by increased value-for-money offerings and wage inflation in the low single digits.

 

G&A Expenses

 

The quarter and year to date decrease in G&A expenses, excluding the impact of F/X, was primarily driven by lower performance-based compensation costs.

 

Operating Profit

 

The increase in Operating profit for the quarter, excluding the impact of F/X, was primarily driven by the increase in Restaurant profit and lower G&A expenses.

 

The year to date increase in Operating profit, excluding the impact of F/X, was primarily driven by lower G&A expenses.

 

All Other Segments

 

All Other Segments reflects the results of Lavazza, Huang Ji Huang, Little Sheep and Taco Bell, our delivery operating segment and our e-commerce business.

 

 

Quarter Ended

 

Year to Date Ended

 

 

 

 

 

 

 

 

 

 

% B/(W)

 

 

 

 

 

 

 

 

 

% B/(W)

 

 

 

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

Company sales

 

$

13

 

 

$

14

 

 

 

(11

)

 

 

 

(12

)

 

 

$

42

 

 

$

46

 

 

 

(11

)

 

 

 

(9

)

 

Franchise fees and income

 

 

4

 

 

 

5

 

 

 

(16

)

 

 

 

(17

)

 

 

 

13

 

 

 

15

 

 

 

(16

)

 

 

 

(14

)

 

Revenues from transactions with
   franchisees

 

 

19

 

 

 

20

 

 

 

(2

)

 

 

 

(3

)

 

 

 

55

 

 

 

56

 

 

 

(1

)

 

 

 

1

 

 

Other revenues

 

 

176

 

 

 

162

 

 

 

9

 

 

 

 

8

 

 

 

 

484

 

 

 

468

 

 

 

3

 

 

 

 

6

 

 

Total revenues

 

$

212

 

 

$

201

 

 

 

6

 

 

 

 

5

 

 

 

$

594

 

 

$

585

 

 

 

1

 

 

 

 

4

 

 

Company restaurant expenses

 

$

14

 

 

$

20

 

 

 

26

 

 

 

 

27

 

 

 

$

45

 

 

$

56

 

 

 

18

 

 

 

 

16

 

 

G&A expenses

 

$

9

 

 

$

11

 

 

 

13

 

 

 

 

14

 

 

 

$

29

 

 

$

32

 

 

 

8

 

 

 

 

6

 

 

Franchise expenses

 

$

1

 

 

$

—

 

 

 

(32

)

 

 

 

(30

)

 

 

$

1

 

 

$

1

 

 

 

20

 

 

 

 

17

 

 

Expenses for transactions with
   franchisees

 

$

17

 

 

$

17

 

 

 

—

 

 

 

 

1

 

 

 

$

50

 

 

$

50

 

 

 

—

 

 

 

 

(2

)

 

Other operating costs and
   expenses

 

$

172

 

 

$

160

 

 

 

(8

)

 

 

 

(7

)

 

 

$

476

 

 

$

463

 

 

 

(3

)

 

 

 

(5

)

 

Closures and impairment
   expenses, net

 

$

3

 

 

$

—

 

 

NM

 

 

 

NM

 

 

 

$

5

 

 

$

3

 

 

 

(50

)

 

 

 

(50

)

 

Operating Loss

 

$

(4

)

 

$

(7

)

 

 

35

 

 

 

 

36

 

 

 

$

(12

)

 

$

(20

)

 

 

34

 

 

 

 

33

 

 

OP Margin %

 

 

(1.9

)%

 

 

(3.1

)%

 

 

1.2

 

ppts.

 

 

1.2

 

ppts.

 

 

(2.1

)%

 

 

(3.2

)%

 

 

1.1

 

ppts.

 

 

1.1

 

ppts.

Restaurant loss

 

$

(1

)

 

$

(6

)

 

 

67

 

 

 

 

68

 

 

 

$

(3

)

 

$

(10

)

 

 

51

 

 

 

 

51

 

 

Restaurant margin %

 

 

(13.2

)%

 

 

(36.1

)%

 

 

22.9

 

ppts.

 

 

22.9

 

ppts.

 

 

(11.8

)%

 

 

(21.6

)%

 

 

9.8

 

ppts.

 

 

9.8

 

ppts.

 

 

36

Total Revenues

 

The quarter and year to date increase in Total revenues of All other segments, excluding the impact of F/X, was primarily driven by inter-segment revenue generated by our delivery team for services provided to Company-owned restaurants as a result of increased delivery sales, partially offset by same-store sales decline.

 

Operating Loss

 

The quarter and year to date decrease in Operating loss, excluding the impact of F/X, was primarily driven by the decrease in Operating loss from certain emerging brands.

 

Corporate and Unallocated

 

 

 

Quarter Ended

 

Year to Date Ended

 

 

 

 

 

 

 

 

% B/(W)

 

 

 

 

 

 

 

% B/(W)

 

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

 

9/30/2024

 

 

9/30/2023

 

 

Reported

 

Ex F/X

Revenues from transactions
   with franchisees

 

$

80

 

 

$

67

 

 

 

19

 

 

 

 

18

 

 

 

$

219

 

 

$

190

 

 

 

15

 

 

 

 

18

 

 

Other revenues

 

$

17

 

 

$

12

 

 

 

48

 

 

 

 

46

 

 

 

$

48

 

 

$

32

 

 

 

51

 

 

 

 

55

 

 

Expenses for transactions
   with franchisees

 

$

79

 

 

$

66

 

 

 

(19

)

 

 

 

(18

)

 

 

$

217

 

 

$

188

 

 

 

(15

)

 

 

 

(18

)

 

Other operating costs and
   expenses

 

$

17

 

 

$

12

 

 

 

(49

)

 

 

 

(47

)

 

 

$

47

 

 

$

30

 

 

 

(58

)

 

 

 

(61

)

 

Corporate G&A expenses

 

$

42

 

 

$

60

 

 

 

31

 

 

 

 

32

 

 

 

$

120

 

 

$

161

 

 

 

26

 

 

 

 

25

 

 

Other unallocated income,
   net

 

$

—

 

 

$

—

 

 

NM

 

 

 

NM

 

 

 

$

(1

)

 

$

(1

)

 

 

29

 

 

 

 

35

 

 

Interest income, net

 

$

31

 

 

$

46

 

 

 

(32

)

 

 

 

(32

)

 

 

$

100

 

 

$

124

 

 

 

(19

)

 

 

 

(19

)

 

Investment gain (loss)

 

$

34

 

 

$

(4

)

 

NM

 

 

 

NM

 

 

 

$

50

 

 

$

(32

)

 

NM

 

 

 

NM

 

 

Income tax provision
   (See Note 12)

 

$

(119

)

 

$

(100

)

 

 

(19

)

 

 

 

(18

)

 

 

$

(309

)

 

$

(296

)

 

 

(5

)

 

 

 

(7

)

 

Equity in net earnings
   (losses) from
   equity method investments

 

$

2

 

 

$

2

 

 

 

(11

)

 

 

 

(14

)

 

 

$

2

 

 

$

2

 

 

 

(11

)

 

 

 

(13

)

 

Effective tax rate
   (See Note 12)

 

 

27.3

%

 

 

27.5

%

 

 

0.2

 

ppts.

 

 

0.2

 

ppts.

 

 

26.6

%

 

 

27.2

%

 

 

0.6

 

ppts.

 

 

0.6

 

ppts.

 

 

Revenues from Transactions with Franchisees

 

Revenues from transactions with franchisees primarily include revenues derived from the Company’s central procurement model, whereby food and paper products are centrally purchased and then mainly sold to KFC and Pizza Hut franchisees. The quarter and year to date increase, excluding the impact of F/X, was mainly due to the increase in system sales for franchisees primarily driven by acceleration of franchise store openings.

 

G&A Expenses

 

The quarter and year to date decrease in Corporate G&A expenses, excluding the impact of F/X, was primarily due to lower performance-based compensation costs and improvement in operational efficiency.

 

Interest Income, Net

 

The quarter and year to date decrease in interest income, excluding the impact of F/X, was primarily driven by lower investment balance during the year.

 

Investment Gain (Loss)

 

The investment gain (loss) mainly relates to the change in fair value of our investment in Meituan. See Note 3 for additional information.

 

37

Income Tax Provision

 

Our income tax provision primarily includes tax on our earnings generally at the Chinese statutory tax rate of 25% with certain Chinese subsidiaries qualified for preferential tax rates, withholding tax on planned or actual repatriation of earnings outside of China, Hong Kong profits tax, and U.S. corporate income tax, if any. The lower effective tax rate for the quarter ended September 30, 2024 was primarily due to the impact from fair value change of our investment in Meituan. The lower effective tax rate for the year to date ended September 30, 2024 was primarily due to the favorable impact from the reduction of certain non-deductible items and the impact from fair value change of our investment in Meituan.

 

 

Significant Known Events, Trends or Uncertainties Expected to Impact Future Results

 

Tax Examination on Transfer Pricing

 

We are subject to reviews, examinations and audits by Chinese tax authorities, the Internal Revenue Service and other tax authorities with respect to income and non-income based taxes. Since 2016, we have been under a national audit on transfer pricing by the STA in China regarding our related party transactions for the period from 2006 to 2015. The information and views currently exchanged with the tax authorities focus on our franchise arrangement with YUM. We continue to provide information requested by the tax authorities to the extent it is available to the Company. It is reasonably possible that there could be significant developments, including expert review and assessment by the STA, within the next 12 months. The ultimate assessment and decision of the STA will depend upon further review of the information provided, as well as ongoing technical and other discussions with the STA and in-charge local tax authorities, and therefore it is not possible to reasonably estimate the potential impact at this time. We will continue to defend our transfer pricing position. However, if the STA prevails in the assessment of additional tax due based on its ruling, the assessed tax, interest and penalties, if any, could have a material adverse impact on our financial position, results of operations and cash flows.

 

PRC Value-Added Tax (“VAT”)

 

Effective May 1, 2016, a 6% output VAT replaced the 5% business tax (“BT”) previously applied to certain restaurant sales. Input VAT would be creditable to the aforementioned 6% output VAT. Our new retail business is generally subject to VAT rates at 9% or 13%. The latest VAT rates imposed on our purchase of materials and services included 13%, 9% and 6%, which were gradually changed from 17%, 13%, 11% and 6% since 2017. These rate changes impact our input VAT on all materials and certain services, mainly including construction, transportation and leasing. However, the impact on our operating results is not expected to be significant.

 

Entities that are general VAT taxpayers are permitted to offset qualified input VAT paid to suppliers against their output VAT upon receipt of appropriate supplier VAT invoices on an entity-by-entity basis. When the output VAT exceeds the input VAT, the difference is remitted to tax authorities, usually on a monthly basis; whereas when the input VAT exceeds the output VAT, the difference is treated as a VAT asset which can be carried forward indefinitely to offset future net VAT payables. VAT related to purchases and sales which have not been settled at the balance sheet date is disclosed separately as an asset and liability, respectively, in the Condensed Consolidated Balance Sheets. At each balance sheet date, the Company reviews the outstanding balance of any VAT asset for recoverability, giving consideration to the indefinite life of VAT assets as well as its forecasted operating results and capital spending, which inherently includes significant assumptions that are subject to change. As of September 30, 2024, the Company has not made an allowance for the recoverability of VAT assets, as the balance is expected to be utilized to offset against VAT payables or be refunded in the future.

 

On June 7, 2022, the Chinese Ministry of Finance (“MOF”) and the STA jointly issued Circular [2022] No. 21, to extend full VAT credit refunds to more sectors and increase the frequency for accepting taxpayers’ applications. Beginning on July 1, 2022, entities engaged in providing catering services in China are allowed to apply for a lump sum refund of VAT assets accumulated prior to March 31, 2019. In addition, VAT assets accumulated after March 31, 2019 can be refunded on a monthly basis.

 

As of September 30, 2024, VAT assets of $110 million, VAT assets of $7 million and net VAT payable of $7 million were recorded in Prepaid expenses and other current assets, Other assets and Accounts payable and other current liabilities, respectively, in the Condensed Consolidated Balance Sheets.

 

The Company will continue to review the classification of VAT assets at each balance sheet date, giving consideration to different local implementation practices of refunding VAT assets and the outcome of potential administrative reviews.

 

38

Pursuant to Circular [2019] No. 39, Circular [2019] No. 87 and Circular [2022] No. 11 jointly issued by relevant government authorities, including the MOF and the STA, from April 1, 2019 to December 31, 2022, general VAT taxpayers in certain industries that meet certain criteria were allowed to claim an additional 10% or 15% input VAT, which were used to offset their VAT payables. Pursuant to Circular [2023] No. 1 jointly issued by the MOF and the STA in January 2023, such VAT policy was further extended to December 31, 2023 but the additional deduction was reduced to 5% or 10% respectively. Accordingly, we recognized such VAT deductions of $42 million in the year to date ended September 30, 2023. The VAT deductions were recorded as a reduction to the related expense item, primarily in Company restaurant expenses included in the Condensed Consolidated Statements of Income. Such preferential VAT policy was not extended in 2024.

 

We have been benefiting from the retail tax structure reform since it was implemented on May 1, 2016. However, the amount of our expected benefit from this VAT regime depends on a number of factors, some of which are outside of our control. The interpretation and application of the new VAT regime are not settled at some local governmental levels. In addition, China is in the process of enacting the prevailing VAT regulations into a national VAT law. However, the timetable for enacting the national VAT law is not clear. As a result, for the foreseeable future, the benefit of this significant and complex VAT reform has the potential to fluctuate from period to period.

 

Foreign Currency Exchange Rate

 

The reporting currency of the Company is the US$. Most of the revenues, costs, assets and liabilities of the Company are denominated in Chinese Renminbi (“RMB”). Any significant change in the exchange rate between US$ and RMB may materially affect the Company’s business, results of operations, cash flows and financial condition, depending on the weakening or strengthening of RMB against the US$. See “Item 3. Quantitative and Qualitative Disclosures About Market Risk” for further discussion.

 

Condensed Consolidated Cash Flows

 

Our cash flows for the years to date ended September 30, 2024 and 2023 were as follows:

 

Net cash provided by operating activities was $1,252 million in 2024 as compared to $1,334 million in 2023. The decrease was primarily driven by working capital changes.

 

Net cash used in investing activities was $28 million in 2024 as compared to $1,052 million in 2023. The decrease was mainly due to the net impact on cash flows resulting from purchases and maturities of short-term investments, and long-term bank deposits and notes.

 

Net cash used in financing activities was $1,159 million in 2024 as compared to $240 million in 2023. The increase was primarily driven by the increase in share repurchases and repayment of short-term bank borrowings.

 

Liquidity and Capital Resources

 

Historically we have funded our operations through cash generated from the operation of our Company-owned stores and our franchise operations. Our global offering in September 2020 provided us with $2.2 billion in net proceeds.

 

Our ability to fund our future operations and capital needs will primarily depend on our ongoing ability to generate cash from operations. We believe our principal uses of cash in the future will be primarily to fund our operations and capital expenditures for accelerating store network expansion and store remodeling, to step up investments in digitalization, automation and logistics infrastructure, to provide returns to our stockholders, as well as to explore opportunities for acquisitions or investments that build and support our ecosystem. We believe that our future cash from operations, together with our funds on hand and access to the capital markets, will provide adequate resources to fund these uses of cash, and that our existing cash, net cash from operations and credit facilities will be sufficient to fund our operations and anticipated capital expenditures for the next 12 months. We currently expect our fiscal year 2024 capital expenditures to be in the range of approximately $700 million to $850 million.

 

39

If our cash flows from operations are less than we require, we may need to access the capital markets to obtain financing. Our access to, and the availability of, financing on acceptable terms and conditions in the future or at all will be impacted by many factors, including, but not limited to:

 

•
our financial performance;
•
our credit ratings;
•
the liquidity of the overall capital markets and our access to capital markets; and
•
the state of the Chinese, U.S. and global economies, as well as relations between the Chinese and U.S. governments.

 

There can be no assurance that we will have access to the capital markets on terms acceptable to us or at all.

 

Generally, our income is subject to the Chinese statutory tax rate of 25%. However, to the extent our cash flows from operations exceed our China cash requirements, the excess cash may be subject to an additional 10% withholding tax levied by the Chinese tax authority, subject to any reduction or exemption set forth in relevant tax treaties or tax arrangements.

 

Share Repurchases and Dividends

 

On November 2, 2023, our Board of Directors increased the share repurchase authorization to an aggregate of $3.4 billion. During the years to date ended September 30, 2024 and 2023, the Company repurchased 27.3 million shares of common stock for $1,055 million and 4.9 million shares of common stock for $281 million, respectively, under the repurchase program.

 

On November 4, 2024, the Board of Directors further increased the Company’s share repurchase authorization by $1 billion, bringing total authorization since 2017 to $4.4 billion. With the increase of share repurchase authorization, approximately $1.4 billion remained available for future share repurchases under the authorization. Yum China may repurchase shares under the authorization from time to time in the open market or, subject to applicable regulatory requirements, through privately negotiated transactions, block trades, accelerated share repurchase transactions and the use of Rule 10b5-1 trading plans.

 

For the quarters ended September 30, 2024 and 2023, the Company paid cash dividends of approximately $61 million and $54 million, respectively, and for the years to date ended September 30, 2024 and 2023, the Company paid aggregate cash dividends of approximately $187 million and $162 million, respectively, to stockholders through a quarterly dividend payment of $0.16 and $0.13 per share, respectively.

 

On November 4, 2024, the Board of Directors declared a cash dividend of $0.16 per share, payable on December 17, 2024, to stockholders of record as of the close of business on November 26, 2024. The total estimated cash dividend payable is approximately $61 million.

 

The Company plans to step up the capital returns to shareholders from $3 billion to $4.5 billion between 2024 and 2026, representing an increase of 50%. As part of the enlarged capital returns program, the Company plans to return a total of $1.5 billion in share repurchases and dividends for the full year 2024.

 

Our capital returns plan is based on current expectations, which may change based on market conditions, capital needs or otherwise. In addition, our ability to declare and pay any dividends on our stock may be restricted by our earnings available for distribution under applicable Chinese laws. The laws, rules and regulations applicable to our Chinese subsidiaries permit payments of dividends only out of their accumulated profits, if any, determined in accordance with applicable Chinese accounting standards and regulations. Under Chinese laws, an enterprise incorporated in China is required to set aside at least 10% of its after-tax profits each year, after making up previous years’ accumulated losses, if any, to fund certain statutory reserve funds, until the aggregate amount of such a fund reaches 50% of its registered capital. As a result, our Chinese subsidiaries are restricted in their ability to transfer a portion of their net assets to us in the form of dividends. At the discretion of the board of directors, as an enterprise incorporated in China, each of our Chinese subsidiaries may allocate a portion of its after-tax profits based on Chinese accounting standards to staff welfare and bonus funds. These reserve funds and staff welfare and bonus funds are not distributable as cash dividends.

 

Borrowing Capacity

 

As of September 30, 2024, the Company had credit facilities of RMB8,006 million (approximately $1,141 million), comprised of onshore credit facilities in the aggregate amount of RMB5,900 million (approximately $841 million), offshore credit facilities in the aggregate amount of $100 million and a credit facility of $200 million that can be used for either onshore or offshore.

40

 

The credit facilities had remaining terms ranging from less than one year to three years as of September 30, 2024. Our credit facilities mainly include term loans, overdrafts, letters of credit, banker’s acceptance notes and bank guarantees. The credit facilities in general bear interest based on the Loan Prime Rate (“LPR”) published by the National Interbank Funding Centre of the PRC, or Secured Overnight Financing Rate (“SOFR”) published by the Federal Reserve Bank of New York. Each credit facility contains a cross-default provision whereby our failure to make any payment on a principal amount from any credit facility will constitute a default on other credit facilities. Some of the credit facilities contain covenants limiting, among other things, certain additional indebtedness and liens, and certain other transactions specified in the respective agreements. As of September 30, 2024, we had outstanding short-term bank borrowings of RMB2,211 million (approximately $315 million), mainly to manage working capital at our operating subsidiaries. Such bank borrowings are due within one year from their issuance dates. As of September 30, 2024, we also had outstanding bank guarantees of RMB244 million (approximately $35 million) mainly to secure our lease payments to landlords for certain Company-owned restaurants. Our credit facilities were therefore reduced by outstanding short-term bank borrowings, adjusted for unamortized interest and collateral, and outstanding guarantees. As of September 30, 2024, the Company had unused credit facilities of approximately $789 million.

 

New Accounting Pronouncements

 

Recently Adopted Accounting Pronouncements

 

See Note 2 for details of recently adopted accounting pronouncements.

 

New Accounting Pronouncements Not Yet Adopted

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures (“ASU 2023-07”), requiring public business entities to provide disclosures of significant expenses and other segment items. The guidance also requires public entities to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 is effective for the Company for annual periods from January 1, 2024, and for interim periods from January 1, 2025, with early adoption permitted. We are currently evaluating the impact the adoption of this standard may have on our financial statements.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) — Improvements to Income Tax Disclosures (“ASU 2023-09”), requiring public business entities to provide additional information in the rate reconciliation and additional disclosures about income taxes paid. ASU 2023-09 is effective for the Company from January 1, 2025, with early adoption permitted. We are currently evaluating the impact the adoption of this standard may have on our financial statements.

 

Cautionary Note Regarding Forward-Looking Statements

 

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements often include words such as “may,” “will,” “estimate,” “intend,” “seek,” “expect,” “project,” “anticipate,” “believe,” “plan,” “could,” “target,” “aim,” “commit,” “predict,” “likely,” “should,” “forecast,” “outlook,” “model,” “continue,” “ongoing” or other similar terminology. Forward-looking statements are based on our expectations, estimates, assumptions or projections concerning future results or events as of the date of the filing of this Form 10-Q. Our plan of capital returns to shareholders is based on current expectations, which may change based on market conditions, capital needs or otherwise. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results and events to differ materially from those indicated by those statements. We cannot assure you that any of our assumptions are correct or any of our expectations, estimates or projections will be achieved. Numerous factors could cause our actual results to differ materially from those expressed or implied by forward-looking statements, including, without limitation, the following:

 

•
Risks related to our business and industry, such as (a) food safety and foodborne illness concerns, (b) significant failure to maintain effective quality assurance systems for our restaurants, (c) significant liability claims, food contamination complaints from our customers or reports of incidents of food tampering, (d) health concerns arising from outbreaks of viruses or other illnesses, (e) the fact that the operation of our restaurants is subject to the terms of the master license agreement with YUM, (f) the fact that substantially all of our revenue is derived from our operations in China, (g) the fact that our success is tied to the success of YUM’s brand strength, marketing campaigns and product innovation, (h) shortages or interruptions in the availability and delivery of food products and other supplies, (i) fluctuation of raw materials prices, (j) our inability to attain our target development goals, the potential cannibalization of existing sales by aggressive development and the possibility that new restaurants will not be profitable, (k) risks associated with leasing real estate, (l) inability to obtain desirable restaurant locations on commercially reasonable terms, (m) labor shortages or increases in labor costs, (n) the fact that our success depends substantially on our corporate reputation and on the value and perception of our brands, (o) the occurrence of security breaches and cyber-attacks, (p) failure to protect the integrity and security of our customer or employee personal, financial or other data or our proprietary or confidential information that is stored in our information systems or by third parties on our behalf, (q) failures or interruptions of service or security breaches in our

41

information technology systems, (r) the fact that our business depends on the performance of, and our long-term relationships with, third-party mobile payment processors, internet infrastructure operators, internet service providers and delivery aggregators and third-party e-commerce platforms, (s) failure to provide timely and reliable delivery services by our restaurants, (t) our growth strategy with respect to Lavazza may not be successful, (u) the anticipated benefits of our acquisitions may not be realized in a timely manner or at all, (v) challenges and risks related to our new retail and e-commerce businesses, (w) use of GenAI technologies, (x) our inability or failure to recognize, respond to and effectively manage the impact of social media, (y) failure to comply with anti-bribery or anti-corruption laws, (z) U.S. federal income taxes, changes in tax rates, disagreements with tax authorities and imposition of new taxes, (aa) changes in consumer discretionary spending and general economic conditions, (bb) the fact that the restaurant industry in which we operate is highly competitive, (cc) loss of or failure to obtain or renew any or all of the approvals, licenses and permits to operate our business, (dd) our inability to adequately protect the intellectual property we own or have the right to use, (ee) our licensor’s failure to protect its intellectual property, (ff) seasonality and certain major events in China, (gg) our failure to detect, deter and prevent all instances of fraud or other misconduct committed by our employees, customers or other third parties, (hh) the fact that our success depends on the continuing efforts of our key management and experienced and capable personnel as well as our ability to recruit new talent, (ii) our strategic investments or acquisitions may be unsuccessful; (jj) our investment in technology and innovation may not generate the expected level of returns, and (kk) fair value changes for our investment in equity securities, lower yields of our short-term investments or lower returns of our future long-term bank deposits and notes may adversely affect our financial condition and results of operations, and (ll) our operating results may be adversely affected by our investment in equity method investee;

 

•
Risks related to doing business in China, such as (a) changes in Chinese political policies and economic and social policies or conditions, (b) the interpretation and enforcement of Chinese laws, rules and regulations may change from time to time with little advance notice, and the risk that the PRC government may intervene or influence our operations, which could result in a material change in our operations and/or the value of our securities to decline, (c) audit reports included in our annual reports prepared by auditors who are located in China, and in the event the PCAOB is unable to inspect our auditors, our common stock will be subject to potential delisting from the New York Stock Exchange, (d) changes in political, business, economic and trade relations between the United States and China, (e) fluctuation in the value of the Chinese Renminbi, (f) the fact that we face increasing focus on environmental sustainability issues, (g) limitation on our ability to utilize our cash balances effectively, including making funds held by our China-based subsidiaries unavailable for use outside of mainland China, due to interventions in or the imposition of restrictions and limitations by the PRC government on currency conversion and payments of foreign currency and RMB out of mainland China, (h) changes in the laws and regulations of China or noncompliance with applicable laws and regulations, (i) reliance on dividends and other distributions on equity paid by our principal subsidiaries in China to fund offshore cash requirements, (j) potential unfavorable tax consequences resulting from our classification as a China resident enterprise for Chinese enterprise income tax purposes, (k) uncertainty regarding indirect transfers of equity interests in China resident enterprises and enhanced scrutiny by Chinese tax authorities, (l) difficulties in effecting service of legal process, conducting investigations, collecting evidence, enforcing foreign judgments or bringing original actions in China against us, (m) the Chinese government may determine that the variable interest entity structure of Daojia does not comply with Chinese laws on foreign investment in restricted industries, (n) inability to use properties due to defects caused by non-registration of lease agreements related to certain properties, (o) risk in relation to unexpected land acquisitions, building closures or demolitions, (p) potential fines and other legal or administrative sanctions for failure to comply with Chinese regulations regarding our employee equity incentive plans and various employee benefit plans, (q) proceedings instituted by the SEC against certain China-based accounting firms, including our independent registered public accounting firm, could result in our financial statements being determined to not be in compliance with the requirements of the Exchange Act, (r) restrictions on our ability to make loans or additional capital contributions to our Chinese subsidiaries due to Chinese regulation of loans to, and direct investment in, Chinese entities by offshore holding companies and governmental administration of currency conversion, (s) difficulties in pursuing growth through acquisitions due to regulations regarding acquisitions, and (t) the PRC government has significant oversight and discretion to exert supervision over offerings of securities conducted outside of China and over foreign investment in China-based issuers, and may limit or completely hinder our ability to offer securities to investors, or cause the value of our securities to significantly decline;

 

•
Risks related to the separation and related transactions, such as (a) incurring significant tax liabilities if the distribution does not qualify as a transaction that is generally tax-free for U.S. federal income tax purposes and the Company could be required to indemnify YUM for material taxes and other related amounts pursuant to indemnification obligations under the tax matters agreement, (b) being obligated to indemnify YUM for material taxes and related amounts pursuant to indemnification obligations under the tax matters agreement if YUM is subject to Chinese indirect transfer tax with respect to the distribution, (c) potential indemnification liabilities owing to YUM pursuant to the separation and distribution agreement, (d) the indemnity provided by YUM to us with respect to certain liabilities in connection with the separation may be insufficient to insure us against the full amount of such liabilities, (e) the possibility that a court would require that we assume responsibility for obligations allocated to YUM under the separation and distribution agreement, and (f) potential liabilities due to fraudulent transfer considerations; and

 

42

•
General risks, such as (a) potential legal proceedings, (b) changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters, (c) failure of our insurance policies to provide adequate coverage for claims associated with our business operations, (d) unforeseeable business interruptions, and (e) failure by us to maintain effective disclosure controls and procedures and internal control over financial reporting in accordance with the rules of the SEC.

 

In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the SEC (including the information set forth under the captions “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023) for additional information regarding factors that could affect our financial and other results. You should not place undue reliance on forward-looking statements, which speak only as of the date of the filing of this Form 10-Q. We are not undertaking to update any of these statements, except as required by law.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Foreign Currency Exchange Rate Risk

 

Changes in foreign currency exchange rates impact the translation of our reported foreign currency denominated earnings, cash flows and net investments in foreign operations, virtually all of which are denominated in RMB. While substantially all of our supply purchases are denominated in RMB, from time to time, we enter into agreements with third parties to purchase certain amount of goods and services sourced overseas and make payments in the corresponding local currencies at predetermined exchange rates when practical, to minimize the related foreign currency exposure with immaterial impact on our financial statements.

 

As substantially all of the Company’s operations are located in China, the Company is exposed to movements in the RMB foreign currency exchange rate. For the quarter and year to date ended September 30, 2024, the Company’s Operating profit would have decreased by approximately $36 million and $96 million, respectively, if the RMB weakened 10% relative to the U.S. dollar. This estimated reduction assumes no changes in sales volumes or local currency sales or input prices.

 

Commodity Price Risk

 

We are subject to volatility in food costs as a result of market risk associated with commodity prices. Our ability to recover increased costs through higher pricing is, at times, limited by the competitive environment in which we operate. We manage our exposure to this risk primarily through pricing agreements with our vendors.

 

Investment Risk

 

In September 2018, we invested $74 million in 8.4 million of Meituan’s ordinary shares. The Company sold 4.2 million of its ordinary shares of Meituan in the second quarter of 2020 for proceeds of approximately $54 million. Equity investment in Meituan is recorded at fair value, which is measured on a recurring basis and is subject to market price volatility. See Note 3 for further discussion on our investment in Meituan.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

The Company has evaluated the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 as of the end of the period covered by this report. Based on the evaluation, performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (the “CEO”) and the Chief Financial Officer (the “CFO”), the Company’s management, including the CEO and the CFO, concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes with respect to the Company’s internal control over financial reporting during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

43

PART II – Other Information

 

 

Information regarding legal proceedings is incorporated by reference from Note 14 to the Company’s Condensed Consolidated Financial Statements set forth in Part I of this report.

 

Item 1A. Risk Factors

 

We face a variety of risks that are inherent in our business and our industry, including operational, legal and regulatory risks. Such risks could cause our actual results to differ materially from our forward-looking statements, expectations and historical trends. There have been no material changes from the risk factors disclosed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 29, 2024.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

As of September 30, 2024, our Board of Directors had authorized an aggregate of $3.4 billion for our share repurchase program. The authorization does not have an expiration date.

 

The following table provides information as of September 30, 2024 with respect to shares of Yum China common stock repurchased on the NYSE and HKEX by the Company during the quarter then ended:

 

Period

 

Total Number of
Shares Repurchased
(thousands)

 

 

Average Price Paid
Per Share(a)

 

 

Total Number of Shares
Repurchased as Part of
Publicly Announced
Plans or Programs
(thousands)

 

 

Approximate Dollar
Value of Shares that
May Yet Be
Repurchased under
the Plans or Programs
(millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7/1/24-7/31/24

 

 

2,148

 

 

$

30.67

 

 

 

2,148

 

 

$

600

 

8/1/24-8/31/24

 

 

1,925

 

 

$

33.04

 

 

 

1,925

 

 

$

536

 

9/1/24-9/30/24

 

 

1,591

 

 

$

35.98

 

 

 

1,591

 

 

$

479

 

Total

 

 

5,664

 

 

$

32.97

 

 

 

5,664

 

 

$

479

 

 

(a)
Starting January 2024, the Company also repurchased shares of common stock through open market transactions on the HKEX. Price paid for shares repurchased on the HKEX have been converted into U.S. dollars at the exchange rate on the date of repurchase.

 

Item 5. Other Information

 

During the quarter ended September 30, 2024, none of the Company’s officers (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended (“Exchange Act”) or directors adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Exchange Act).

44

Item 6. Exhibits

 

Exhibit

Number

 

Description of Exhibits

10.1

 

Transition and Advisor Agreement, dated August 4, 2024, by and between Yum China Holdings, Inc. and Andy Yeung (incorporated by reference to Exhibit 10.1 to Yum China Holdings, Inc.’s Current Report on Form 8-K filed on August 5, 2024). †

 

 

 

31.1

 

Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

 

31.2

 

Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

 

32.1

 

Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

 

32.2

 

Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

 

101.INS

 

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document *

 

101.SCH

 

Inline XBRL Taxonomy Extension Schema Document *

 

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document *

 

 

 

101.LAB

 

Inline XBRL Taxonomy Extension Label Linkbase Document *

 

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document *

 

101.DEF

 

Inline XBRL Taxonomy Extension Definition Linkbase Document *

 

 

 

104

 

Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document *

 

* Filed or furnished herewith.

† Indicates a management contract or compensatory plan.

45

SIGNATURES

 

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Yum China Holdings, Inc.

 

(Registrant)

 

Date:

 

November 8, 2024

/s/ Xueling Lu

 

 

 

Controller and Principal Accounting Officer

 

46