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應付股本會員2023-06-300001673358us-gaap:運營業務細分會員us-gaap:其他所有分段成員2024-01-012024-09-300001673358餐食公司：經營部門和企業非部門成員2023-01-012023-09-300001673358us-gaap:運營業務細分會員餐食公司：與特許經營者的交易成員餐食公司：肯德基成員2024-07-012024-09-300001673358餐食公司：經營部門和企業非部門成員餐食公司：來自銷售的食品和非食品收入成員2024-07-012024-09-300001673358餐食公司：必勝客成員餐食公司：與特許經營者的交易成員us-gaap:運營業務細分會員2023-07-012023-09-300001673358Taco Bell會員2024-01-012024-09-300001673358企業和未分配會員us-gaap:運營業務細分會員其他收入會員2023-01-012023-09-300001673358對股權證券的投資會員us-gaap:重複計量公允價值會員2023-12-310001673358福建三諾發展股份有限公司會員2024-09-300001673358yumc：與特許經營者成員的交易us-gaap:運營業務細分會員yumc：肯德基會員2023-01-012023-09-300001673358us-gaap:企業非部門會員2023-12-310001673358yumc：肯德基會員2023-12-310001673358us-gaap:運營業務細分會員yumc：特許費和收入會員yumc：肯德基會員2023-07-012023-09-300001673358yumc：公司和未分配成員us-gaap:運營業務細分會員2023-07-012023-09-300001673358us-gaap:運營業務細分會員yumc：銷售成員的食品和非食品收入us-gaap:其他所有分段成員2024-07-012024-09-300001673358yumc：公司和未分配成員us-gaap:運營業務細分會員2024-01-012024-09-300001673358美國公認會計原則（US-GAAP）：公允價值輸入級別3成員yumc：餐廳會員US-GAAP:非經常性成員的公允價值測量2024-01-012024-09-300001673358yumc：福建三諾發展股份有限公司會員2023-01-012023-12-310001673358yumc：必勝客會員2023-07-012023-09-300001673358yumc：杭州餐飲會員2024-09-300001673358yumc：必勝客會員us-gaap:運營業務細分會員yumc：食品和非食品銷售收入會員2024-07-012024-09-300001673358yumc : 必勝客會員us-gaap:運營業務細分會員yumc : 外部客戶收入會員2023-01-012023-09-300001673358美元指數: 應付股本會員2024-06-300001673358yumc : 杭州餐飲會員2023-12-310001673358yumc : 美團點評會員2023-01-012023-09-300001673358yumc : 經營板塊和公司非板塊會員yumc : 板塊間收入會員2023-01-012023-09-300001673358yumc：預付特許權使用費會員2024-09-300001673358yumc：必勝客會員us-gaap:運營業務細分會員yumc：其他收入會員2023-01-012023-09-300001673358yumc：黃記煌集團會員2023-12-310001673358srt：最低會員yumc：黃記煌會員2024-01-012024-09-300001673358yumc：公司及未分配會員us-gaap:運營業務細分會員yumc：來自外部客戶的營業收入會員2023-01-012023-09-300001673358us-gaap:運營業務細分會員yumc：來自外部客戶的營業收入會員yumc：肯德基會員2024-07-012024-09-300001673358us-gaap:運營業務細分會員yumc：其他收入會員yumc：肯德基會員2024-01-012024-09-300001673358us-gaap:運營業務細分會員yumc：其他收入會員yumc：肯德基會員2024-07-012024-09-300001673358us-gaap:其他所有分段成員2023-01-012023-12-310001673358srt:最大成員2024-07-012024-09-300001673358yumc：公司和未分配成員us-gaap:運營業務細分會員yumc：分部間收入會員2023-07-012023-09-300001673358yumc：福建聖農發展股份有限公司會員2023-07-012023-09-300001673358yumc：香港交易所會員2024-01-012024-09-300001673358yumc：主要爲建築物的融資租賃會員2024-09-300001673358us-gaap:運營業務細分會員yumc：食品和非食品銷售收入會員yumc：肯德基會員2023-01-012023-09-300001673358us-gaap:運營業務細分會員yumc：特許經營費用和收入會員yumc：肯德基會員2023-01-012023-09-300001673358us-gaap:運營業務細分會員yumc：其他營收會員us-gaap:其他所有分段成員2023-01-012023-09-300001673358yumc：肯德基的所有者和經營者會員yumc：北京會員yumc：肯德基會員2024-09-300001673358us-gaap:TrademarksMemberyumc：黃記煌集團會員2024-09-300001673358跨業務板塊清算成員yumc：其他營收會員2024-01-012024-09-300001673358yumc：預付儲值產品會員2023-12-310001673358us-gaap：其他綜合收益的累計成員2022-12-310001673358US-GAAP：普通股成員2023-07-012023-09-300001673358yumc：必勝客會員us-gaap:運營業務細分會員yumc：銷售會員的食品和非食品收入2024-01-012024-09-300001673358yumc：公司和未分配成員us-gaap:運營業務細分會員yumc：其他收入成員2024-07-012024-09-300001673358yumc：運營部門和公司非部門成員的營運部門yumc：其他收入成員2024-01-012024-09-300001673358US-GAAP：普通股成員2023-01-012023-09-300001673358yumc：運營部門和公司非部門成員的營運部門yumc：內部業務收入會員2024-01-012024-09-300001673358us-gaap：其他綜合收益的累計成員2023-06-300001673358us-gaap:重複計量公允價值會員yumc：可變回報投資會員2023-12-310001673358美元指數: 應付股本會員2023-09-3000016733582023-06-300001673358us-gaap:運營業務細分會員yumc：肯德基會員2024-01-012024-09-300001673358其他地址成員2024-01-012024-09-300001673358yumc：銷售會員的食品和非食品收入2024-01-012024-09-300001673358us-gaap:運營業務細分會員yumc：與特許經營者的交易會員us-gaap:其他所有分段成員2024-01-012024-09-300001673358us-gaap：公允價值輸入二級成員us-gaap:重複計量公允價值會員2024-09-300001673358us-gaap:其他所有分段成員2024-07-012024-09-300001673358yumc：小肥羊會員2024-01-012024-09-300001673358us-gaap:運營業務細分會員外部客戶收入會員KFC會員2024-01-012024-09-300001673358其他收入會員2024-01-012024-09-300001673358與特許經營商的交易會員us-gaap:運營業務細分會員us-gaap:其他所有分段成員2023-01-012023-09-300001673358特許費和收入會員2023-01-012023-09-300001673358yumc：杭州餐飲會員2023-01-012023-12-310001673358美國通用會計準則：貨幣市場基金成員us-gaap:重複計量公允價值會員2023-12-310001673358US-GAAP:非經常性成員的公允價值測量2023-09-300001673358yumc：必勝客會員us-gaap:運營業務細分會員2023-01-012023-09-300001673358yumc：黃記黃集團會員2024-09-300001673358跨業務板塊清算成員2023-07-012023-09-300001673358us-gaap:TreasuryStockCommonMember2024-07-012024-09-300001673358yumc：其他收入會員2024-07-012024-09-300001673358yumc：其他收入會員2023-01-012023-09-300001673358美元指數: 應付股本會員2024-09-300001673358US-GAAP：普通股成員2022-12-310001673358跨業務板塊清算成員yumc：其他收入會員2023-01-012023-09-300001673358yumc：O 2024 Q 4 分紅會員2024-11-042024-11-040001673358yumc：來自外部客戶收入會員2023-01-012023-09-300001673358yumc：銷售的食品和非食品收入會員2023-01-012023-09-300001673358us-gaap:企業非部門會員2023-01-012023-09-300001673358yumc：非現金交易會員2023-01-012023-09-300001673358us-gaap:重複計量公允價值會員2024-09-300001673358us-gaap：公允價值輸入二級成員yumc：結構性存款會員us-gaap:重複計量公允價值會員2024-09-300001673358yumc：必勝客會員us-gaap:運營業務細分會員yumc：來自銷售的食品和非食品收入會員2023-01-012023-09-300001673358us-gaap:運營業務細分會員yumc：肯德基會員2023-01-012023-09-3000016733582024-01-012024-09-300001673358US-GAAP：普通股成員2023-12-310001673358yumc：必勝客會員2023-01-012023-09-300001673358yumc：美團點評會員2024-07-012024-09-300001673358yumc：預付儲值產品會員2024-09-300001673358us-gaap:BankTimeDepositsMemberus-gaap：公允價值輸入二級成員us-gaap:重複計量公允價值會員2023-12-310001673358yumc：公司及未分配會員yumc：與特許經營者的交易會員us-gaap:運營業務細分會員2023-01-012023-09-300001673358yumc：特許經營費用和收入會員2023-07-012023-09-300001673358us-gaap：留存收益成員2023-12-310001673358酉陽雞：福建三元發展股份有限公司會員2021-03-310001673358酉陽雞：杭州餐飲會員2021-10-012021-12-310001673358跨業務板塊清算成員2023-01-012023-09-300001673358酉陽雞：必勝客會員us-gaap:運營業務細分會員2023-12-310001673358酉陽雞：肯德基會員2023-07-012023-09-300001673358酉陽雞：與特許經營者的交易會員Yumc: 經營部門和公司非部門成員2023-01-012023-09-300001673358Yumc: 肯德基和必勝客成員2024-01-012024-09-300001673358Yumc: 肯德基成員2024-07-012024-09-300001673358Yumc: 硬性租賃主要爲建築物成員2023-12-310001673358Yumc: 可贖回的非控股權益成員2023-07-012023-09-300001673358Yumc: 必勝客成員us-gaap:運營業務細分會員Yumc: 與特許經營者的交易成員2023-01-012023-09-300001673358yumc：美團點評會員2024-01-012024-09-300001673358yumc：必勝客會員us-gaap:運營業務細分會員yumc：來自外部客戶的收入會員2023-07-012023-09-300001673358yumc：公司和未分配會員us-gaap:運營業務細分會員yumc：來自外部客戶的收入會員2024-07-012024-09-300001673358yumc：美團點評會員2023-07-012023-09-300001673358yumc：公司及未分配成員us-gaap:運營業務細分會員yumc：外部客戶收入成員2024-01-012024-09-300001673358yumc：到家平台成員2024-09-3000016733582023-01-012023-09-300001673358美國通用會計準則：機械設備成員2024-09-300001673358yumc：福建三諾發展有限公司成員2023-12-310001673358us-gaap：其他綜合收益的累計成員2024-01-012024-09-300001673358美國通用會計準則: 公允價值輸入一級成員us-gaap:重複計量公允價值會員yumc：可變回報投資會員2023-12-310001673358us-gaap：其他綜合收益的累計成員2023-09-300001673358美元指數:非控股權成員2023-09-300001673358us-gaap：其他綜合收益的累計成員2023-01-012023-09-300001673358us-gaap：公允價值輸入二級成員yumc：結構性存款會員us-gaap:重複計量公允價值會員2023-12-310001673358yumc：結構性存款會員us-gaap:重複計量公允價值會員2024-09-300001673358us-gaap：其他綜合收益的累計成員2023-12-310001673358yumc：公司餐廳費用會員2023-01-012023-09-300001673358關聯方成員us-gaap：應付賬款及應計負債成員yumc：福建三諾發展有限公司會員2024-09-300001673358yumc：美團點評會員2018-09-300001673358yumc：外部客戶營收會員2023-07-012023-09-300001673358yumc：其他有限壽命無形資產會員2024-09-300001673358yumc：必勝客會員us-gaap:運營業務細分會員yumc：與特許經營者交易會員2024-07-012024-09-300001673358yumc：到家平台會員2023-12-310001673358美元指數:非控股權成員2024-06-300001673358yumc：必勝客會員us-gaap:運營業務細分會員yumc：外部客戶收入會員2024-07-012024-09-300001673358yumc：經營部門和企業非部門會員yumc：其他收入會員2024-07-012024-09-300001673358US-GAAP：普通股成員2023-09-300001673358yumc：與特許經營者的交易會員2024-01-012024-09-300001673358美元指數:非控股權成員2023-06-300001673358yumc：結構性存款會員us-gaap:重複計量公允價值會員2023-12-310001673358us-gaap:運營業務細分會員yumc：特許權費和收入成員us-gaap:其他所有分段成員2024-01-012024-09-300001673358us-gaap:其他所有分段成員2024-09-300001673358yumc：經營部門和公司非部門成員yumc：銷售的食品和非食品收入成員2023-07-012023-09-300001673358美國通用會計準則: 公允價值輸入一級成員美國通用會計準則：貨幣市場基金成員us-gaap:重複計量公允價值會員2023-12-310001673358us-gaap:運營業務細分會員yumc：銷售會員的食品和非食品收入yumc：肯德基會員2023-07-012023-09-300001673358yumc：特權會員計劃會員2024-09-300001673358us-gaap:運營業務細分會員yumc：分部間收入會員us-gaap:其他所有分段成員2024-01-012024-09-300001673358美國通用會計準則: 公允價值輸入一級成員us-gaap:重複計量公允價值會員US-GAAP：FixedIncomeSecuritiesMember2023-12-3100016733582023-07-012023-09-300001673358yumc：可贖回的非控制權益成員2024-09-300001673358us-gaap:運營業務細分會員yumc：與特許經營者交易成員yumc：肯德基成員2024-01-012024-09-300001673358srt:最大成員2023-07-012023-09-300001673358yumc：修改或其他重新評估事件會員2023-01-012023-09-300001673358us-gaap:運營業務細分會員yumc：其他收入會員us-gaap:其他所有分段成員2023-07-012023-09-300001673358yumc：經營部門和公司非部門成員yumc：部門間收入會員2024-07-012024-09-300001673358yumc：必勝客會員us-gaap:運營業務細分會員餐飲：特許經營費用和收入成員2024-01-012024-09-300001673358餐飲：運營部門和公司非部門成員2024-07-012024-09-300001673358美國通用會計準則: 公允價值輸入一級成員us-gaap:重複計量公允價值會員餐飲：可變回報投資成員2024-09-300001673358餐飲：杭州餐飲成員2024-01-012024-09-300001673358us-gaap:運營業務細分會員yumc：肯德基會員2023-07-012023-09-300001673358yumc：肯德基會員2024-09-300001673358us-gaap:企業非部門會員2024-07-012024-09-300001673358us-gaap：留存收益成員2023-09-300001673358跨業務板塊清算成員yumc：其他營收會員2024-07-012024-09-300001673358yumc：公司及未分配會員yumc：與特許經營者交易會員us-gaap:運營業務細分會員2024-01-012024-09-300001673358us-gaap：公允價值輸入二級成員us-gaap:重複計量公允價值會員US-GAAP：FixedIncomeSecuritiesMember2023-12-310001673358YUMC：食品和非食品銷售會員收入2023-07-012023-09-30iso4217:USDxbrli:股份xbrli：純形yumc: 選段xbrli:股份yumc:餐廳iso4217:USD

美國

證券交易委員會

華盛頓特區20549

 

表格 10-Q

 

（標記一）

☒

根據1934年證券交易法第13或15(d)節的季度報告

 

截至季度結束日期的財務報告9月30日， 2024

 

或者

 

☐

根據1934年證券交易法第13或15(d)節的轉型報告書

 

在從__________過渡到____________的過渡期間

 

佣金文件號 001-37762

 

 

百勝中國控股有限公司

（其章程中規定的註冊人的確切姓名）

 

特拉華州

 

81-2421743

（註冊或組織的）提起訴訟的州或其他司法管轄區（如適用）

 

（IRS僱主

組建國的駐地

 

唯一識別號碼）

 

 

 

東公園大道101號，805室

普萊諾, 得克薩斯州 75074

美利堅合衆國

 

百勝中國大廈

天鑰橋路20號

上海 200030

中華人民共和國。

 

(主要行政辦公室地址，包括郵政編碼)

(469) 980-2898

(註冊人電話號碼，包括區號)

不適用

（如果公司名稱、地址或財年自上次報告以來有變更，請標明之前的名稱、地址和財年）

在法案第12(b)條的規定下注冊的證券：

 

每一類的名稱

交易標誌

在其上註冊的交易所的名稱

普通股，每股面值0.01美元

YUMC

請使用moomoo賬號登錄查看New York Stock Exchange

9987

香港聯合交易所有限公司

 

請用複選標記表示：註冊人（1）根據1934年證券交易法第13或 15(d)條款在過去12個月內已經提交了所有要求提交的報告（或者對於註冊人需要提交此類報告的較短期間），並且（2）在過去90天內一直受到此類提交要求的約束。 Yes ☒否☐

請用勾號勾選以下內容：c註冊人是否已在過去的12個月內（或c註冊人需要提交此類文件的更短期限內）按照S-T法規第405條規定的要求遞交了每份互動數據文件。Yes根據交易所法規12b-2中「大型加速文件報告人」，「加速文件報告人」，「小型報告公司」和「新興增長公司」的定義，請勾選發行人是否爲大型加速文件報告人。

勾選以下選框，指示申報人是大型加速評估提交人、加速評估提交人、非加速評估提交人、小型報告公司或新興成長型公司。關於「大型加速評估提交人」、「加速評估提交人」、「小型報告公司」和「新興成長型公司」的定義，請參見《交易所法規》第12億.2條。

 

大型加速報告人

☒

加速文件提交人

☐

 

 

 

 

 

 

 

非加速文件提交人

☐

較小的報告公司

☐

 

 

 

 

 

 

 

 

 

 

 

新興成長公司

 

☐

 

如果是新興成長型公司，在選中複選標記的同時，如果公司已選擇不使用根據證券交易法第13(a)條提供的任何新的或修訂後的財務會計準則的延長過渡期來符合新的或修訂後的財務會計準則，則表明該公司已選擇不使用根據證券交易法第13(a)條提供的任何新的或修訂後的財務會計準則的延長過渡期來符合新的或修訂後的財務會計準則。☐

請在選框內打勾，指明註冊商是否爲交易所法規120.2中定義的空殼公司。 是 ☐ 否☒

截至2024年11月4日，註冊人普通股的流通股份數量爲 379,764,211 股份。

 

 

 

 

百勝中國控股有限公司

指數

 

 

 

 

不。

 

 

 

第一部分

財務信息

 

 

 

 

 

項目1 - 基本報表

3

 

 

 

 

截至2024年9月30日和2023年的按季度和年度合併利潤簡明財務報表（未經審計）

3

 

 

 

 

截至2024年9月30日和2023年的按季度和年度合併綜合利潤簡明財務報表（未經審計）

4

 

 

 

 

截至2024年9月30日和2023年的按年度合併現金流量簡明財務報表（未經審計）

5

 

 

 

 

控件合併資產負債表–2024年9月30日（未經審計）和2023年12月31日

6

 

 

 

 

控件合併股東權益報表–截至2024年9月30日和2023年（未經審計）的季度和年度

7

 

 

 

 

未經審計的簡明合併財務報表註釋

9

 

 

 

 

項目2-管理層對財務狀況和業績的討論與分析

25

 

 

 

 

項目3 - 關於市場風險的定量和定性披露

43

 

 

 

 

第4項-控件和程序

43

 

 

 

第二部分

其他信息

 

 

 

 

 

項目1 — 法律訴訟

44

 

 

 

 

項目1A - 風險因素

44

 

 

 

 

第2條 - 未註冊的股本證券銷售和使用的收益

44

 

 

 

 

第5項-其他信息

44

 

 

 

 

第六項-展品

45

 

 

 

 

簽名

46

 

 

 

第一部分 – 財務資訊AL資訊

 

項目 1. 財財務報表

 

綜合損益彙總狀態表收入數據（未經審核）

發展中國控股有限公司。

(以百萬美元為單位，除每股數據外)

 

 

 

季度結束

 

 

截至年底日期

 

收益

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

公司銷售額

 

$

2,895

 

 

$

2,759

 

 

$

8,217

 

 

$

8,048

 

特許費和收入

 

 

25

 

 

 

23

 

 

 

72

 

 

 

69

 

來自特許經營者交易的收入

 

 

116

 

 

 

100

 

 

 

319

 

 

 

282

 

其他收入

 

 

35

 

 

 

32

 

 

 

100

 

 

 

86

 

總收益

 

 

3,071

 

 

 

2,914

 

 

 

8,708

 

 

 

8,485

 

成本及費用，淨額

 

 

 

 

 

 

 

 

 

 

 

 

公司餐廳

 

 

 

 

 

 

 

 

 

 

 

 

食品和紙張

 

 

918

 

 

 

858

 

 

 

2,611

 

 

 

2,466

 

薪資和員工福利

 

 

728

 

 

 

699

 

 

 

2,102

 

 

 

2,047

 

租金和其他營業費用

 

 

755

 

 

 

732

 

 

 

2,126

 

 

 

2,098

 

公司餐廳費用

 

 

2,401

 

 

 

2,289

 

 

 

6,839

 

 

 

6,611

 

總部及行政費用

 

 

139

 

 

 

169

 

 

 

412

 

 

 

485

 

特許經營費用

 

 

10

 

 

 

9

 

 

 

29

 

 

 

28

 

與特許經營者交易的費用

 

 

110

 

 

 

95

 

 

 

306

 

 

 

270

 

其他營運成本和費用

 

 

32

 

 

 

29

 

 

 

90

 

 

 

77

 

結業和減值費用，淨額

 

 

8

 

 

 

—

 

 

 

22

 

 

 

17

 

其他（收入）支出，淨額

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

1

 

總成本和支出，淨額

 

 

2,700

 

 

 

2,591

 

 

 

7,697

 

 

 

7,489

 

營業利潤

 

 

371

 

 

 

323

 

 

 

1,011

 

 

 

996

 

利息收益，淨額

 

 

31

 

 

 

46

 

 

 

100

 

 

 

124

 

投資收益（虧損）

 

 

34

 

 

 

(4

)

 

 

50

 

 

 

(32

)

營業稅前收入及股權中之收入（虧損）
股權法之投資帶來的淨收益（虧損）

 

 

436

 

 

 

365

 

 

 

1,161

 

 

 

1,088

 

所得稅負擔

 

 

(119

)

 

 

(100

)

 

 

(309

)

 

 

(296

)

股權法之投資帶來的淨收益（虧損）的權益

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

凈利潤，包括非控制權益

 

 

319

 

 

 

267

 

 

 

854

 

 

 

794

 

凈利潤，非控制權益

 

 

22

 

 

 

23

 

 

 

58

 

 

 

64

 

凈收益 - 百勝中國控股有限公司

 

$

297

 

 

$

244

 

 

$

796

 

 

$

730

 

權重平均流通在外普通股（百萬）：

 

 

 

 

 

 

 

 

 

 

 

 

基礎

 

 

384

 

 

 

416

 

 

 

391

 

 

 

417

 

稀釋

 

 

385

 

 

 

420

 

 

 

393

 

 

 

421

 

普通股每股基本盈利

 

$

0.77

 

 

$

0.59

 

 

$

2.04

 

 

$

1.75

 

每普通股稀釋盈利

 

$

0.77

 

 

$

0.58

 

 

$

2.03

 

 

$

1.73

 

 

見附帶的基本報表附註。

 

3

綜合收益簡明綜合財務報表未經審核的綜合收益簡明綜合財務報表

發展中國控股有限公司。

（以百萬美元為單位）

 

 

 

季度結束

 

 

截止本年止

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

凈利潤-包括非控制利益

 

$

319

 

 

$

267

 

 

$

854

 

 

$

794

 

其他綜合收益（淨額，稅後零）：

 

 

 

 

 

 

 

 

 

 

 

 

外匯轉換調整

 

 

167

 

 

 

(29

)

 

 

56

 

 

 

(274

)

綜合收益-包括非控制利益

 

 

486

 

 

 

238

 

 

 

910

 

 

 

520

 

綜合收益-非控制利益

 

 

42

 

 

 

20

 

 

 

64

 

 

 

29

 

綜合收益-Yum China Holdings，Inc。

 

$

444

 

 

$

218

 

 

$

846

 

 

$

491

 

 

見附帶的基本報表附註。

 

4

綜合綜合損益及損益表（未經審計）現金流量表附註（未經審核）

發展中國控股有限公司。

（以百萬美元為單位）

 

 

 

截至本年結束

 

 

9/30/2024

 

9/30/2023

現金流量 - 營運活動

 

 

 

 

 

 

 

 

凈利潤 - 包括非控制權益

 

$

854

 

 

 

$

794

 

 

折舊費及攤銷

 

 

355

 

 

 

 

339

 

非現金經營租賃成本

 

 

305

 

 

 

 

301

 

 

關閉和減損費用

 

 

22

 

 

 

 

17

 

 

投資 (損益)

 

 

(50

)

 

 

 

32

 

 

對關聯企業投資的股權投資凈（收入）損失

 

 

(2

)

 

 

 

(2

)

 

從股權法投資收到的收入分配

 

 

7

 

 

 

 

8

 

 

遞延所得稅

 

 

(4

)

 

 

 

(6

)

 

以股份為基礎的薪酬費用

 

 

32

 

 

 

 

46

 

 

應收賬款變動

 

 

(4

)

 

 

 

(2

)

 

存貨變動

 

 

69

 

 

 

 

(25

)

 

预付款、其他流動資產及增值稅資產變動

 

 

3

 

 

 

 

(10

)

 

應付賬款及其他流動負債變動

 

 

(83

)

 

 

 

112

 

 

應交所得稅變動

 

 

67

 

 

 

 

71

 

 

非當前營運租賃負債變動

 

 

(303

)

 

 

 

(295

)

 

其他，淨額

 

 

(16

)

 

 

 

(46

)

 

營運活動提供的凈現金

 

 

1,252

 

 

 

 

1,334

 

 

現金流量 - 投資活動

 

 

 

 

 

 

 

 

資本支出

 

 

(523

)

 

 

 

(499

)

 

購買短期投資、長期銀行存款及票據

 

 

(3,330

)

 

 

 

(3,287

)

 

短期投資、長期銀行存款及票據到期

 

 

3,821

 

 

 

 

2,730

 

 

其他，淨額

 

 

4

 

 

 

 

4

 

 

投資活動使用的淨現金

 

 

(28

)

 

 

 

(1,052

)

 

現金流量-融資活動

 

 

 

 

 

 

 

 

來自短期借款的款項

 

 

307

 

 

 

 

212

 

 

偿还短期借款

 

 

(167

)

 

 

 

—

 

 

買回普通股股份

 

 

(1,057

)

 

 

 

(280

)

 

普通股股息支付

 

 

(187

)

 

 

 

(162

)

 

支付非控制權益的股息

 

 

(36

)

 

 

 

(37

)

 

來自非控制權益的出資

 

 

—

 

 

 

 

35

 

 

購收相關按留款付款

 

 

—

 

 

 

 

(3

)

 

其他，淨額

 

 

(19

)

 

 

 

(5

)

 

籌資活動中使用的淨現金

 

 

(1,159

)

 

 

 

(240

)

 

匯率對現金、現金等價物和受限現金的影響

 

 

—

 

 

 

 

(41

)

 

現金、現金等價物和受限現金淨增加額

 

 

65

 

 

 

 

1

 

 

期初的現金、現金等價物和受限現金

 

 

1,128

 

 

 

 

1,130

 

 

期末的現金、現金等價物和受限現金

 

$

1,193

 

 

 

$

1,131

 

 

 

補充現金流量資料

 

 

 

 

 

 

 

支付之所得稅金額

 

 

263

 

 

 

245

 

 

支付利息的現金

 

 

4

 

 

 

3

 

 

非現金投資和融資活動

 

 

 

 

 

 

 

資本支出包含應付帳款及其他流動負債項目

 

 

167

 

 

 

180

 

 

 

見附帶的基本報表附註。

5

精簡 所有板塊綜合賬表

發展中國控股有限公司。

（以百萬美元為單位）

 

 

 

9/30/2024

 

 

12/31/2023

 

 

 

(未經查核)

 

 

 

 

資產

 

 

 

 

 

 

流動資產

 

 

 

 

 

 

現金及現金等價物

 

$

1,193

 

 

$

1,128

 

短期投資

 

 

1,338

 

 

 

1,472

 

應收帳款淨額

 

 

79

 

 

 

68

 

存貨淨值

 

 

359

 

 

 

424

 

預付費用及其他流動資產

 

 

348

 

 

 

339

 

所有流動資产總額

 

 

3,317

 

 

 

3,431

 

不動產、廠房及設備淨值

 

 

2,431

 

 

 

2,310

 

營運租賃權使用資產

 

 

2,215

 

 

 

2,217

 

商譽

 

 

1,955

 

 

 

1,932

 

無形資產，扣除累計攤銷

 

 

150

 

 

 

150

 

長期銀行存款和票據

 

 

933

 

 

 

1,265

 

股權投資

 

 

388

 

 

 

332

 

透過權益法之投資

 

 

145

 

 

 

129

 

其他資產

 

 

267

 

 

 

265

 

總資產

 

 

11,801

 

 

 

12,031

 

 

 

 

 

 

 

 

負債，可贖回非控制權益和權益

 

 

 

 

 

 

流動負債

 

 

 

 

 

 

應付賬款及其他流動負債

 

 

2,103

 

 

 

2,164

 

短期借款

 

 

315

 

 

 

168

 

應納所得稅款

 

 

160

 

 

 

90

 

全部流动负债

 

 

2,578

 

 

 

2,422

 

非流動經營租賃負債

 

 

1,880

 

 

 

1,899

 

非流動融資租賃負債

 

 

51

 

 

 

44

 

遞延所得稅負債

 

 

406

 

 

 

390

 

其他負債

 

 

158

 

 

 

157

 

總負債

 

 

5,073

 

 

 

4,912

 

 

 

 

 

 

 

 

可赎回的非控制权益

 

 

13

 

 

 

13

 

 

 

 

 

 

 

 

股權

 

 

 

 

 

 

0.010.01票面價值； 1,000授權的股票數量為百萬 382百萬股
      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

 

庫藏股

 

 

(18

)

 

 

—

 

資本公積額額外增資

 

 

4,053

 

 

 

4,320

 

保留收益

 

 

2,156

 

 

 

2,310

 

累積其他全面損失

 

 

(179

)

 

 

(229

)

合計中國百勝控股有限公司股東權益

 

 

6,016

 

 

 

6,405

 

非控制權益

 

 

699

 

 

 

701

 

股東權益總額

 

 

6,715

 

 

 

7,106

 

總負債、可贖回的非控制權益和股權

 

$

11,801

 

 

$

12,031

 

 

 

 

 

 

 

 

 

見附帶的基本報表附註。

 

 

 

6

縮編合併 權益報表（未經審計）

發展中國控股有限公司。

（以百萬美元為單位）

 

 

 

發展中國控股有限公司。

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

累計

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common

 

 

額外的

 

 

 

 

 

其他

 

 

 

 

 

 

 

 

 

 

 

 

 

 

可贖回的

 

 

 

股票

 

 

實收資本

 

 

保留收益

 

 

綜合

 

 

庫藏股

 

 

非控制權益

 

 

總計

 

 

非控制權益

 

 

 

分享*

 

 

金額

 

 

資本

 

 

累積盈餘

 

 

虧損

 

 

股份

 

 

金額

 

 

權益投資

 

 

股權

 

 

利息

 

2024年6月30日餘額

 

 

387

 

 

$

4

 

 

$

4,103

 

 

$

2,048

 

 

$

(326

)

 

 

(1

)

 

$

(17

)

 

$

657

 

 

$

6,469

 

 

$

13

 

凈利潤

 

 

 

 

 

 

 

 

 

 

 

297

 

 

 

 

 

 

 

 

 

 

 

 

22

 

 

 

319

 

 

 

—

 

外匯轉換調整

 

 

 

 

 

 

 

 

 

 

 

 

 

147

 

 

 

 

 

 

 

 

 

20

 

 

 

167

 

 

 

—

 

綜合收益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

486

 

 

 

—

 

現金分紅宣布
   ($0.16 每普通股份)

 

 

 

 

 

 

 

 

 

 

 

(61

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(61

)

 

 

 

分派給/貢獻來自
非控制股權

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

—

 

 

 

 

回購和養老

 

 

(6

)

 

 

—

 

 

 

(59

)

 

 

(128

)

 

 

 

 

 

—

 

 

 

(1

)

 

 

 

 

 

(188

)

 

 

 

行使和授予基於股份的獎勵

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

基於股份的報酬

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

9

 

 

 

 

2024年9月30日結餘

 

 

382

 

 

$

4

 

 

$

4,053

 

 

$

2,156

 

 

$

(179

)

 

 

(1

)

 

$

(18

)

 

$

699

 

 

$

6,715

 

 

$

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023年6月30日結餘

 

 

417

 

 

$

4

 

 

$

4,396

 

 

$

2,465

 

 

$

(316

)

 

 

—

 

 

$

—

 

 

$

656

 

 

$

7,205

 

 

$

12

 

凈利潤

 

 

 

 

 

 

 

 

 

 

 

244

 

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

267

 

 

 

1

 

外匯轉換調整

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25

)

 

 

 

 

 

 

 

 

(4

)

 

 

(29

)

 

 

—

 

綜合收益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

238

 

 

 

1

 

現金分紅宣告
   ($0.13 每股普通股份)

 

 

 

 

 

 

 

 

 

 

 

(54

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(54

)

 

 

 

分配給/貢獻來自 非控股權益
非控股權益的分配

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

—

 

 

 

 

回購和 養老 股份

 

 

(3

)

 

 

—

 

 

 

(31

)

 

 

(129

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(160

)

 

 

 

行使和獎勵基於股份的股票

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

基於股份的報酬

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

17

 

 

 

 

截至2023年9月30日的結餘

 

 

415

 

 

$

4

 

 

$

4,382

 

 

$

2,526

 

 

$

(341

)

 

 

—

 

 

$

—

 

 

$

675

 

 

$

7,246

 

 

$

13

 

 

7

 

 

永中國控股股份有限公司

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

累積

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

常見

 

 

額外

 

 

 

 

 

其他

 

 

 

 

 

 

 

 

 

 

 

 

 

 

可兌換

 

 

 

股票

 

 

已付款

 

 

保留

 

 

綜合

 

 

庫務股票

 

 

非控制

 

 

總計

 

 

非控制

 

 

 

股份 *

 

 

金額

 

 

資本

 

 

收入

 

 

損失

 

 

股票

 

 

金額

 

 

興趣

 

 

股票

 

 

利息

 

二零二三年十二月三十一日結餘

 

 

407

 

 

$

4

 

 

$

4,320

 

 

$

2,310

 

 

$

(229

)

 

 

—

 

 

$

—

 

 

$

701

 

 

$

7,106

 

 

$

13

 

淨收入

 

 

 

 

 

 

 

 

 

 

 

796

 

 

 

 

 

 

 

 

 

 

 

 

58

 

 

 

854

 

 

 

—

 

外幣轉換調整

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

 

 

 

 

 

 

6

 

 

 

56

 

 

 

—

 

綜合收益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

910

 

 

 

—

 

現金股息申報
($)0.48每股普通股）

 

 

 

 

 

 

 

 

 

 

 

(187

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(187

)

 

 

 

向 ／ 供款
非控制權益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(66

)

 

 

(66

)

 

 

 

購回及退還股份

 

 

(27

)

 

 

—

 

 

 

(284

)

 

 

(763

)

 

 

 

 

 

(1

)

 

 

(18

)

 

 

 

 

 

(1,065

)

 

 

 

行使及授權以股份為基礎的獎勵

 

 

1

 

 

 

—

 

 

 

(15

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15

)

 

 

 

基於股份的賠償

 

 

 

 

 

 

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

32

 

 

 

 

二零二四年九月三十日止餘額

 

 

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結餘

 

 

419

 

 

$

4

 

 

$

4,390

 

 

$

2,191

 

 

$

(103

)

 

 

—

 

 

$

—

 

 

$

666

 

 

$

7,148

 

 

$

12

 

淨收入

 

 

 

 

 

 

 

 

 

 

 

730

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

794

 

 

 

1

 

外幣轉換調整

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(238

)

 

 

 

 

 

 

 

 

(36

)

 

 

(274

)

 

 

—

 

綜合收益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

520

 

 

 

1

 

現金股息申報
($)0.39每股普通股）

 

 

 

 

 

 

 

 

 

 

 

(162

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(162

)

 

 

 

向 ／ 供款
非控制權益

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19

)

 

 

(19

)

 

 

 

購回及退還股份

 

 

(5

)

 

 

—

 

 

 

(52

)

 

 

(233

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(285

)

 

 

 

行使及授權以股份為基礎的獎勵

 

 

1

 

 

 

—

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

基於股份的賠償

 

 

 

 

 

 

 

 

46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

46

 

 

 

 

二零二三年九月三十日止餘額

 

 

415

 

 

$

4

 

 

$

4,382

 

 

$

2,526

 

 

$

(341

)

 

 

—

 

 

$

—

 

 

$

675

 

 

$

7,246

 

 

$

13

 

 

*: 由於四捨五入，股份可能不會增加。

 

見附帶的基本報表附註。

 

 

 

 

8

簡明合併基本報表附註未經審核的財務報表附註

(以美元百萬為單位，除非另有註明)

 

附註1 - 業務描述

 

百勝中國控股有限公司（“百勝中國”及其附屬公司合稱為“本公司”，“我們”，“我們”，“我們”）成立於2016年4月1日 特拉華州 ，但大於第 2016年4月1日.

 

該公司擁有、特許經營或擁有經營餐廳（也稱為“商店”或“單位”），採用肯德基、必勝客、Lavazza、皇雞皇、小肥羊和 Taco Bell 概念（總稱“概念板塊”）。 2016年公司與其前母公司百勝品牌公司（Yum! Brands, Inc.，“百勝”）分拆時，本公司的全資間接子公司百勝餐飲顧問（上海）有限公司（“YCCL”）與百勝餐飲國際有限公司（YRI China Franchising LLC），通過另一家百勝具資公司百勝餐飲亞洲私人有限公司（Yum! Restaurants Asia Pte. Ltd.），從2016年10月31日至2019年12月31日，為購買百勝和必勝客品牌在中華人民共和國（“中國”或“中國”）餐館服務的專有權的使用和許可使用與轉授權百勝及其附屬公司擁有的知識產權，向公司提供盈利性授權。 除了香港、澳門和台灣。 該許可的期限是自2016年10月31日開始，用於KFC和必勝客品牌，並在達到特定約定里程碑的情況下， 50年 用於達到一定的約定里程碑， 50 年 自2022年4月15日起，Taco Bell品牌的特許經營權為期可自動續期為每次 50 年，條件是我們保持良好地位，除非通知不續期。作為交換，我們向Yum支付一定比例的許可費，以及 3我們公司和特許經營餐廳的凈系統銷售額的百分之

 

全球主要餐廳品牌KFC在1987年首次進入中國。截至2024年9月30日，中國共有 11,283 家KFC分店。我們擁有黄记皇和小肥羊的知識產權，不需支付與這些概念相關的許可費。 58%, 70%, 83%, 92我們持有紐交所的控制利益，分別在上海、北京、无锡、蘇州和杭州的KFC所在公司和經營公司中持有約百分之 60和百分之

中國第一家必勝客餐廳於1990年開業。截至2024年9月30日，中國有 3,606 家必勝客餐廳。

 

在2020年第二季度，公司與意大利著名家族企業Lavazza Group合作，成立了一家合資企業（“Lavazza joint venture”），旨在在中國探索和發展Lavazza咖啡概念。Lavazza joint venture經營咖啡店業務和零售業務。我們持有Lavazza joint venture的控制權，持有 65%的股權。

 

公司於2017年收購了中國線上外賣服務提供商DAOJIA.com.cn（“Daojia”）的控股權。這項業務也擴展到包括管理餐廳的外賣服務團隊，包括我們體系內的餐廳在內，其業績歸入我們的外賣概念業務控制項。

我們運營一個零售品牌Shaofaner，通過線上和線下渠道銷售包裝食品，直至2024年8月。Shaofaner的營運業績納入我們的電子商務業務控制項。

公司有 兩個 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.

 

 

附註2 - 表示基礎

 

我們編制的附帶的簡明合併財務報表符合美國通用會計準則（「GAAP」），這需要我們作出影響資產負債表報告金額、資產和負債的披露在財務報表日、以及報告期間內收入和支出金額的估計和假設。實際結果可能會有所不同。

9

 

根據證券交易委員會（“SEC”）的規則和法規，我們已按照中期財務信息的要求編制了簡明綜合財務報表。因此，這些報表不包含所有通過GAAP所需的完整財務報表所需的所有信息和腳註。簡明綜合財務報表包括一切為準確展示我們截至2024年9月30日的財務狀況和戰營業績、全面收入、截至2024年9月30日和2023年的第幾季和年度的權益報表以及截至2024年9月30日和2023年的全年現金流量所需的一切正常和經常性調整。我們對這些中期時期的營運業績、全面收入和現金流量的結果未必能反映全年預期的結果。這些陳述應與公司年度報告中包括的合並財務報表和附註一起閱讀，該報告已於2024年2月29日提交給SEC。

 

通過收購Daojia，公司也收購了一個變量利益實體（“VIE”）和Daojia實際控制的VIE的子公司。由於某些獨家協議要求Daojia合併其VIE和VIE的子公司，所以Daojia與其VIE之間存在母子公司關係，因為Daojia是最重要的主要受益人，具有指導最重要經濟活動的權力，並有權獲得幾乎所有利潤，同時也有責任承擔預期損失的所有VIE。收購的VIE及其子公司在單獨和整體上均被視為不重要。自收購之日起，Daojia的營運業績已納入公司的簡明綜合財務報表。

 

最近採納的會計準則

2023年3月，FASB發布了ASU 2023-01。 租賃（主題842）-普通控制安排（“ASU 2023-01”）。要求所有承租方，包括上市公司，應按照耐用壽命攤銷與普通控制租賃相關的租賃改良，並在承租方不再控制基礎資產使用時，將其視為普通控制實體之間的資產轉移，通過對資本進行調整來核算。ASU 2023-01對該公司自2024年1月1日生效，並允許提前採納。我們於2024年1月1日採用了該標準，該採用對我們的基本財務報表沒有實質影響。 在2023年1月，FASB發布了ASU 2023-01。

 

附註 3 – 業務收購和股權投資

 

杭州肯德基的合併與對杭州餐飲的股權投資

 

在2021年第四季度，本公司完成對杭州餐飲的股權投資 28％的股權，金額為$255 百萬美元。杭州餐飲持有杭州肯德基的 45％股權，該公司先前持有 47％股權。除了這筆投資，本公司還獲得了杭州肯德基董事會的兩個額外席位。交易完成後，本公司直接和間接持有杭州肯德基約 60％的股權，並在董事會上佔多數席位，因此取得了對杭州肯德基的控制，並開始從收購日開始整合其業績。

 

除了對杭州肯德基(KFC)的股權投資外，杭州餐飲經營著中華餐飲餐廳，有四個傳統品牌，以及一個食品加工業務。公司採用權益法核算處理 28對杭州餐飲除杭州肯德基業務外的%股權進行了記錄並按照當時的公允價值記錄了這一投資在權益投資中。公司選擇以一季度延遲報告其對杭州餐飲業務的業績，因為其業績無法及時為公司在當期記錄。公司’對杭州餐飲的權益收益（損失）稅後，在截至2024年9月30日和2023年9月30日的兩個季度以及截至2024年9月30日和2023年9月30日的兩年的數字中，均微不足道，包括在我們的綜合損益表中的權益法下投資的損益中。截至2024年9月30日和2023年12月31日，公司對杭州餐飲的權益法投資的帳面金額分別為$46 百萬美元和41 百萬，分別超過公司對杭州餐飲底層淨資產的利益$24 百萬美元和24 百萬，這種差異中絕大部分歸因於其自有物業和相關的延遲稅負影響，根據收購時確定的加權平均剩餘壽命進行折舊 20年.

 

截至2024年9月30日和2023年結束的兩個季度以及截至2024年9月30日和2023年結束的兩年間，從杭州餐飲的採購金額均不重要。公司截至2024年9月30日和2023年12月31日因杭州餐飲而產生的應付帳款和其他流動負債均不重要。

 

10

福建盛農發展有限公司（「盛能」）投資

 

2021年第一季度，公司收購了一家 5深圳證券交易所上市公司Sunner的股權百分比。Sunner是中國最大的白羽雞生產商，也是該公司最大的家禽供應商。2021 年 5 月，經桑納股東批准，公司的一名高級管理人員被提名並被任命爲桑納董事會成員。通過這種陳述，公司參與了Sunner的政策制定過程。董事會中的代表性，加上公司是桑納的重要股東之一，使公司能夠對桑納的運營和財務政策施加重大影響。因此，公司於2021年5月開始根據當時的公允價值對投資採用權益會計法。該公司選擇在Sunner財務業績中所佔的份額延遲了四分之一，因爲Sunner的業績無法及時公佈，因此公司無法在同期內記錄這些業績。在截至2024年9月30日和2023年9月30日的季度和年度中，公司扣除稅款後，來自Sunner的股權收益（虧損）並不重要，已包含在我們的簡明合併收益表中權益法投資的淨收益（虧損）中的權益（虧損）中。

 

該公司購買了美元的庫存119 百萬和美元136 截至2024年9月30日和2023年9月30日的季度分別來自森納的百萬美元，以及美元366 百萬和美元392 截至2024年9月30日和2023年9月30日的年度迄今爲止的年份分別爲百萬美元。該公司應付賬款和應付Sunner的其他流動負債爲美元53 百萬和美元51 截至 2024 年 9 月 30 日和 2023 年 12 月 31 日，分別爲百萬人。

 

截至2024年9月30日和2023年12月31日，公司對森納投資的賬面金額均爲美元225 百萬，比公司在Sunner標的淨資產中的權益高出美元153 百萬和美元152 分別爲百萬。截至 2024 年 9 月 30 日和 2023 年 12 月 31 日，美元16 百萬和美元16 這些基差中有100萬美元分別與收購時確定的有限壽命無形資產有關，這些資產將在估計的使用壽命內攤銷 20 年了。其餘差異與商譽和無限期無形資產有關，這些資產不受攤銷，以及遞延所得稅負債的影響。截至2024年9月30日和2023年12月31日，公司對Sunner投資的市值爲美元123 百萬和美元151 分別按其報價收盤價計算，百萬美元。

 

美團點評（「美團」）投資

 

在2018年第三季度，公司認購了 8.4 百萬，或小於 1％，中國交付聚合商美團普通股，總對價約爲美元74 百萬，當時該公司於2018年9月在香港交易所啓動首次公開募股。在2020年第二季度，公司出售了 4.2 美團的百萬股普通股。

 

公司按公允價值對股票證券進行入賬，隨後的公允價值變動記錄在我們的簡明合併收益表中。投資美團的公允價值是根據每個報告期末股票的收盤市場價格確定的。如果截至報告期末美團股票的收盤市價高於我們的成本，則公允價值變動需繳納美國稅。

 

pre-ta 摘要x 已確認的美團股權證券投資收益或虧損包含在我們簡明合併收益表的投資收益（虧損）中，如下所示：

 

 

 

季度結束

 

 

年初至今已結束

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

仍持有的股票證券上記錄的未實現收益（虧損）
截至期末

 

$

33

 

 

$

(4

)

 

$

49

 

 

$

(33

)

 

 

 

注4-收入確認

 

公司的營業收入包括公司銷售、特許經營費和收入、與特許經營者交易的營業收入，以及其他營業收入。

 

公司銷售

 

來自公司自營餐廳的營業收入在客戶獲得食品並付款時確認，此時我們的履約義務得到滿足。公司以扣除與銷售相關的稅費後的銷售額進行展示。我們還通過自己的移動應用程序和第三方聚合平台爲客戶提供送餐服務。我們主要使用專門的騎手送達訂單，並在特定地點使用平台騎手。當訂單由我們的專門騎手或平台騎手完成時，我們控制並判斷送餐服務的價格，通常在客戶獲取食品時確認包括送餐費在內的營業收入。當訂單由第三方聚合商的送餐員工完成，且他們控制和判斷送餐服務的價格時，我們在食品控制權轉移給第三方聚合商的送餐員工時確認營業收入，但不包括送餐費。這些銷售的付款條款爲短期性質。

 

11

我們會在客戶兌換的預付儲值產品（包括禮品卡和產品優惠券）所得的收入。在任何給定時間出售的預付禮品卡通常會在下一次過期 36 數月，產品優惠券通常會在最多的期間內到期 12 幾個月。我們承認破損收入，即不預計兌換的預付儲值產品數量，如 (1) 在公司預期有權獲得破損金額的情況下，在公司預計有權獲得破損金額的情況下，或 (2) 在公司不預期有權破損的情況下，在沒有要求將未領取的財產部分發放給政府機構的餘額，否則公司不希望有權破損的情況下，否則不需要向政府機構發放的餘額法律。本公司根據有關贖回和到期模式的最新可用信息，至少每年檢討其破損預估。

 

我們的特權會員計劃為會員提供多種優惠的權利，例如免費送貨和特定產品的折扣。對於某些特權會員計劃，提供預先定義數量的福利，可在會員期間可以有關稅率兌換，收入會根據時間過去的計算方式計算。就會員優惠計劃提供多種不同的優惠，包括迎新禮物和預先定義數量的各種折扣券，所收取的代價會根據其相對獨立銷售價格分配給所提供的福利，而收入會員在交付食品或服務或優惠到期時會計入收入。在確定福利的相對獨立售價時，本公司會根據歷史贖回模式考慮未來贖回的可能性，並根據有關贖回和到期模式的最新可用資料定期審查該等估計。

 

特許經營費用和收入

 

特許經營費和收入主要包括前期特許經營費用，例如初始費用和續費，以及持續費。我們確定我們提供的服務以換取前期特許經營費用和持續費用與特許經營權相關。我們將從特許經營商收到的預先特許經營費用視為特許經營協議或續訂協議期內的收入，因為特許經營權被視為存取我們象徵性知識產權的權利。特許經營協議的條款一般是 10 一般來說，肯德基和披薩小屋的年份 五年 適用於小羊和 三 至 10 對於黃吉黃有多年。我們承認持續費用，這些費用以特許經營商銷售的百分比為基礎，因此出現這些銷售情況。

 

與特許經營商交易所得的收入

 

與特許經營商交易所得的收入主要包括食品和紙品的銷售、廣告服務、送貨服務和向特許經營商提供的其他服務。

 

本公司主要向我們所有餐廳（包括特許經營商）從供應商中心購買所有食品和紙品，然後將其出售並交付給餐廳。此外，該公司為其中式餐飲業部門擁有調味設施，該部門為黃吉黃和小羊特許經營商生產和銷售調味品。本公司還為特許經營商提供送貨服務。因此類交易所產生的履行義務被視為與特許經營協議不相同，因為該等特許經營協議並非高度依賴，而客戶可以自行從該等服務中受益。我們將自己視為本安排中的主要人，因為我們能夠在將該商品或服務轉讓給特許經營者之前控制承諾的商品或服務。收入在轉移對訂購物品或服務的控制權時，通常是在交付給特許經營者時記錄。

 

對於廣告服務，本公司通常會聘請第三方提供服務，並根據我們的特許經營協議的條文來定義服務性質以及管理和指導所有營銷和廣告計劃的責任，以及作為交易中的主要人。本公司收集廣告貢獻，通常基於我們所有餐廳（包括特許經營商）的某些銷售百分比。為特許經營者提供的其他服務主要包括客戶和技術支持服務。廣告服務和提供的其他服務與特許經營權相關，並且不被視為個別分開。當相關銷售發生時，我們會記錄收入。

 

其他收入

其他收入主要包括 i) 通過電子商務渠道向客戶銷售產品、Lavazza 咖啡店以外的 Lavazza 咖啡零售產品銷售，以及我們的調味品產品銷售給分銷商，以及 ii) 通過我們的供應鏈網絡向第三方提供的物流和倉儲服務的收入。我們的部分披露還包括與我們公司擁有的餐廳提供的送貨服務有關的收入，因此為合併目的而被刪除。

當對承諾產品或服務的控制權轉讓給客戶時，其他收入會以反映我們預期為該等產品或服務收取的代價而獲得的代價。

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.

 

營業收入的分解

 

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

 

 

 

Quarter Ended 9/30/2024

 

收益

 

肯德基

 

 

必勝客

 

 

所有板塊 (其他)
業務分部

 

 

企業及未分配

 

 

合併

 

 

消除

 

 

合併

 

公司銷售額

 

$

2,276

 

 

$

606

 

 

$

13

 

 

$

—

 

 

$

2,895

 

 

$

—

 

 

$

2,895

 

特許費和收入

 

 

19

 

 

 

2

 

 

 

4

 

 

 

—

 

 

 

25

 

 

 

—

 

 

 

25

 

交易收入
與加盟商的交易

 

 

15

 

 

 

2

 

 

 

19

 

 

 

80

 

 

 

116

 

 

 

—

 

 

 

116

 

其他收入

 

 

1

 

 

 

5

 

 

 

176

 

 

 

17

 

 

 

199

 

 

 

(164

)

 

 

35

 

總收益

 

$

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

 

 

必勝客

 

 

所有板塊 (其他)
業務分部

 

 

企業及未分配

 

 

合併

 

 

消除

 

 

合併

 

公司銷售額

 

$

2,154

 

 

$

591

 

 

$

14

 

 

$

—

 

 

$

2,759

 

 

$

—

 

 

$

2,759

 

特許費和收入

 

 

16

 

 

 

2

 

 

 

5

 

 

 

—

 

 

 

23

 

 

 

—

 

 

 

23

 

交易收入
與特許經營者進行的交易

 

 

12

 

 

 

1

 

 

 

20

 

 

 

67

 

 

 

100

 

 

 

—

 

 

 

100

 

其他收入

 

 

4

 

 

 

5

 

 

 

162

 

 

 

12

 

 

 

183

 

 

 

(151

)

 

 

32

 

總收益

 

$

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

 

 

必勝客

 

 

所有板塊 (其他)
業務分部

 

 

企業及未分配

 

 

合併

 

 

消除

 

 

合併

 

公司銷售額

 

$

6,452

 

 

$

1,723

 

 

$

42

 

 

$

—

 

 

$

8,217

 

 

$

—

 

 

$

8,217

 

特許費和收入

 

 

53

 

 

 

6

 

 

 

13

 

 

 

—

 

 

 

72

 

 

 

—

 

 

 

72

 

交易收入
與加盟商進行的交易

 

 

41

 

 

 

4

 

 

 

55

 

 

 

219

 

 

 

319

 

 

 

—

 

 

 

319

 

其他收入

 

 

9

 

 

 

17

 

 

 

484

 

 

 

48

 

 

 

558

 

 

 

(458

)

 

 

100

 

總收益

 

$

6,555

 

 

$

1,750

 

 

$

594

 

 

$

267

 

 

$

9,166

 

 

$

(458

)

 

$

8,708

 

 

 

 

截至2023年9月30日的本年度結束日期

 

收益

 

肯德基

 

 

必勝客

 

 

所有板塊 (其他)
業務分部

 

 

企業及未分配

 

 

合併

 

 

消除

 

 

合併

 

公司銷售額

 

$

6,274

 

 

$

1,728

 

 

$

46

 

 

$

—

 

 

$

8,048

 

 

$

—

 

 

$

8,048

 

特許費和收入

 

 

48

 

 

 

6

 

 

 

15

 

 

 

—

 

 

 

69

 

 

 

—

 

 

 

69

 

交易營業收入
與特許經營者進行的交易

 

 

33

 

 

 

3

 

 

 

56

 

 

 

190

 

 

 

282

 

 

 

—

 

 

 

282

 

其他收入

 

 

13

 

 

 

13

 

 

 

468

 

 

 

32

 

 

 

526

 

 

 

(440

)

 

 

86

 

總收益

 

$

6,368

 

 

$

1,750

 

 

$

585

 

 

$

222

 

 

$

8,925

 

 

$

(440

)

 

$

8,485

 

 

13

應收帳款

 

應收帳款主要包括來自交易應收款和特許加盟店的版稅，一般應於相應銷售發生後 30 的天數內到期。我們對應收帳款的信用損失提供根據當前預期信用損失（“CECL”）模型。CECL 模型要求估計自起初確認應收帳款以來預期信用損失的終生，並在估計CECL時將具有相似風險特徵的應收帳款分組在一起。在評估CECL時，公司考慮合理和可支持的定量和質性信息，包括歷史信用損失經驗，根據影響收回能力的相關因素進行調整，以及指示外部市場條件的前瞻性信息。儘管我們在做出決定時使用可得到的最佳信息，但已登錄應收款的最終收回也取決於未來經濟事件和其他可能超出我們控制範圍的條件。最終被認定為無法收回，且催收工作已經耗盡的應收款，將被核銷為呆帳備抵帳款。 截至2024年9月30日和2023年12月31日，應收帳款準備結餘分別為$1 百萬美元和1 百萬美元，逾期應收款金額微不足道。

 

獲取合同成本

 

獲取合同的成本包括我們在與特許加盟店簽訂合同前向YUm支付的預付特許費用，以及因我們的賦予存儲價值商品、特權會籍計劃和客戶忠誠計劃的預收收入而向YUm支付的許可費。這些費用符合資本化的要求，因為它們是與客戶簽訂合同的增量成本，公司預期從已發生的此類成本中獲得未來經濟利益。這些獲取合同成本包括在簡明綜合資產負債表的其他資產中，並按照與資產相關的商品或服務轉移一致的系統性基礎上攤銷。 分拆後，我們不再需要支付由特許經營者支付的YUm初始費用或續約費。本公司未承擔過任何與獲取合同相關的減損損失，在所呈現的任何期間內都未發生。 無在所呈現的任何期間內，公司未發生與獲取合同費用相關的減損損失。5 百萬美元和6 ，，分別為2024年9月30日和2013年12月31日。

 

合約負債

 

2024年9月30日和2023年12月31日的合同負債如下所示：

 

合約負債

 

9/30/2024

 

 

12/31/2023

 

– 與預付存儲價值產品相關的逕收入

 

$

127

 

 

$

142

 

– 與預付特許權費有關的逕收入

 

 

42

 

 

 

37

 

– 與客戶忠誠度方案相關的逕收入

 

 

19

 

 

 

24

 

– 與特權會籍方案相關的逕收入

 

 

29

 

 

 

24

 

–其他

 

 

1

 

 

 

1

 

總計

 

$

218

 

 

$

228

 

 

合約負債主要包括與預付存儲價值產品、特權會籍方案、客戶忠誠度方案和預付特許權費有關的逕收入。與預付存儲價值產品、特權會籍方案和客戶忠誠度方案有關的逕收入已納入短期應付款項及其他流動負債在總合簡明合併資產負債表中。預期在未來12個月內認列為營業收入的預付特許權費已納入應付款項及其他流動負債，其餘餘額則納入總合簡明合併資產負債表中的其他負債。每個期間開始時約定負債餘額中包括的已認列為營業收入的收入合計為$67 百萬美元和53 截至2024年和2023年9月30日止的季度，分別為$百萬和$百萬，而截至2024年和2023年9月30日的今年截至日期，為$百萬。合同負債餘額的變動未受業務收購、交易價格估計的變更或其他任何期間所提出的因素的重大影響。97 在實際操作上，公司選擇不揭露與根據銷售提供給特許經營者的基於銷售權利和其他相關服務應收權益相關的剩餘履約義務價值。履約義務的剩餘期間為每項特許經營協議的剩餘合同期限。我們根據一定比例的銷售金額承認持續的特許經營者費用以及來自廣告服務和其他為特許經營者提供的服務的收入，當這些銷售發生時。

 

公司已選擇作為一種便捷措施，不揭示與交易所為獲取特許權和其他相關服務所承諾的基於銷售提供給特許經營者的按銷售額計算的特許權的剩餘履約義務價值。履約義務的剩餘期限為每個特許經營協議的剩餘合同期限。我們根據一定比例的銷售金額承認持續的特許經營者費用和來自廣告服務和其他為特許經營者提供的服務的收入，當這些銷售發生時。

14

 

 

第5條 - 每股收益（EPS）

 

以下表格總結了基本和稀釋後每股收益的元件（以百萬計算，除每股數據外）：

 

 

 

季度結束

 

 

截至本年結束

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

凈收益 - 百勝中國控股有限公司

 

$

297

 

 

$

244

 

 

$

796

 

 

$

730

 

加權平均流通在外普通股
（用於基本計算）(a)

 

 

384

 

 

 

416

 

 

 

391

 

 

 

417

 

稀釋薪酬股份獎懲效應(a)

 

 

1

 

 

 

4

 

 

 

2

 

 

 

4

 

加權平均普通股和股份增值潛在普通股
優先（用於稀釋計算）的優先股(a)

 

 

385

 

 

 

420

 

 

 

393

 

 

 

421

 

普通股每股基本盈利

 

$

0.77

 

 

$

0.59

 

 

$

2.04

 

 

$

1.75

 

每普通股稀釋盈利

 

$

0.77

 

 

$

0.58

 

 

$

2.03

 

 

$

1.73

 

從攤薄後每股收益計算中排除了股份為基礎的獎勵(b)

 

 

6

 

 

 

3

 

 

 

6

 

 

 

2

 

 

(a)
由於分拆，百勝中國普通股的股份於2016年10月19日作為紀錄日期派發給YUM的股東，並納入計算的加權平均普通股份。 YUm公司和百勝中國的股權獎項持有人通常會分別收到調整後的股權獎項，或者完全持有調整後的YUm或百勝中國股權獎項。 無論是公司員工還是YUM員工持有這些獎項，其後的行使都將增加流通普通股的數量。 由股權獎項產生的增量股份包括在攤薄後每股收益的計算中，如果有稀釋效應。
(b)
這些未行使的股份增值權（“SARs”），限制性股票單位（“RSUs”）和績效股票單位（“PSUs”）被排除在攤薄後每股收益的計算之外，因為這樣做對所展示的期間來說是有抵減效應的，或者因為某些PSUs是根據未達到的績效和市場條件而有條件發行的，截至2024年和2023年的9月30日還未達到。

 

附錄6 – 股權

 

股份回購和養老

 

截至2024年9月30日，我們的董事會已授權共計＄3.4 十億用於我們的股份回購計劃。截至2024年9月30日和2023年止，公司已回購 27.3 百萬股普通股，共計＄1,055 百萬美元的收益，而 4.9 百萬股普通股，共計＄281 百萬，分別根據回購計劃。總回購成本包括＄2 百萬美元和2 分別於 2024 年和 2023 年 9 月 30 日後以交易日期購回的股份分別結算，截至 2024 年 9 月 30 日，大約有 $479 百萬可供將來根據授權進行股份回購。

 

截至 2024 年 9 月 30 日止年初購回的股份中， 26.8 百萬 股份已經退休並恢復為授權但未發行的普通股股份， 0.5 百萬股在香港交易所回購的股份預期將於 2024 年 9 月 30 日後退休，並包含在總公司財務報表中的庫藏股中。

 

2022 年的通脹減卻法（“IRA”）在附註 12 中進一步討論，實施了一項非常緊急稅。 1在2022年12月31日後進行的淨股份回購上%。預估對淨股份回購徵收的特稅，作為購回股份成本的一部分，金額為$10 百萬美元和3 分別為截至2024年和2023年9月30日的年度至今的百萬美元。

 

附註 7 – 資產負債表補充資訊

 

應收帳款，淨額

 

9/30/2024

 

 

12/31/2023

 

應收帳款，毛額

 

$

80

 

 

$

69

 

可疑帳款提存

 

 

(1

)

 

 

(1

)

應收帳款淨額

 

$

79

 

 

$

68

 

 

預付費用和其他流動資產

 

9/30/2024

 

 

12/31/2023

 

增值稅（"VAT"）資產

 

$

110

 

 

$

91

 

應收利息

 

 

56

 

 

 

46

 

支付處理器和匯總器應收帳款

 

 

45

 

 

 

78

 

存款，主要是租金存款

 

 

24

 

 

 

25

 

其他預付費用和流動資產

 

 

113

 

 

 

99

 

預付費用及其他流動資產

 

$

348

 

 

$

339

 

 

15

 

資產、廠房和設備（“PP&E”）

 

9/30/2024

 

 

12/31/2023

 

大樓和改良工程，以及在建施工

 

$

3,226

 

 

$

3,073

 

融資租賃，主要為大樓

 

 

81

 

 

 

68

 

機械設備

 

 

1,890

 

 

 

1,742

 

PP&E，總額

 

 

5,197

 

 

 

4,883

 

累積折舊

 

 

(2,766

)

 

 

(2,573

)

PP&E，淨值

 

$

2,431

 

 

$

2,310

 

 

股權投資

 

9/30/2024

 

 

12/31/2023

 

對股權法下投資的投資

 

$

294

 

 

$

287

 

股權證券投資

 

 

94

 

 

 

45

 

股權投資

 

$

388

 

 

$

332

 

 

其他資產

 

9/30/2024

 

 

12/31/2023

 

土地使用權

 

$

112

 

 

$

115

 

長期存款，主要為租金押金

 

 

100

 

 

 

94

 

購買固定資產的預付款

 

 

28

 

 

 

28

 

增值稅資產

 

 

7

 

 

 

6

 

獲取合約成本

 

 

5

 

 

 

6

 

其他

 

 

15

 

 

 

16

 

其他資產

 

$

267

 

 

$

265

 

 

應付帳款和其他流動負債

 

9/30/2024

 

 

12/31/2023

 

應付賬款

 

$

775

 

 

$

786

 

營業租賃負債

 

 

432

 

 

 

426

 

應計的薪資和福利費用

 

 

231

 

 

 

299

 

合約負債

 

 

183

 

 

 

196

 

應計的資本支出

 

 

167

 

 

 

226

 

分紅派息應付款

 

 

86

 

 

 

40

 

應計的營銷費用

 

 

66

 

 

 

51

 

其他流動負債

 

 

163

 

 

 

140

 

應付賬款及其他流動負債

 

$

2,103

 

 

$

2,164

 

其他負債

 

9/30/2024

 

 

12/31/2023

 

合約負債

 

$

35

 

 

$

32

 

應計所得稅負債

 

 

23

 

 

 

39

 

其他非流動負債

 

 

100

 

 

 

86

 

其他負債

 

$

158

 

 

$

157

 

 

第8條 - 商譽和無形資產

 

無形資產商譽攤銷後金額變動如下：

 

 

 

總計
權益代理

 

 

肯德基

 

 

必勝客

 

 

所有板塊 (其他)
業務分部

 

截至2023年12月31日的結餘

 

 

 

 

 

 

 

 

 

 

 

 

商譽，總計

 

$

2,323

 

 

$

1,840

 

 

$

18

 

 

$

465

 

累計減損損失(a)

 

 

(391

)

 

 

—

 

 

 

—

 

 

 

(391

)

商譽淨值

 

 

1,932

 

 

 

1,840

 

 

 

18

 

 

 

74

 

貨幣匯率調整影響

 

 

23

 

 

 

22

 

 

 

—

 

 

 

1

 

截至2024年9月30日的餘額

 

 

 

 

 

 

 

 

 

 

 

 

商譽，總計

 

 

2,346

 

 

 

1,862

 

 

 

18

 

 

 

466

 

累計減損損失(a)

 

 

(391

)

 

 

—

 

 

 

—

 

 

 

(391

)

商譽淨值

 

$

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日的無形資產淨額如下：

 

 

 

9/30/2024

 

 

12/31/2023

 

 

 

總計
Carrying
金額(a)

 

 

留存
攤銷(a)

 

 

累積減損損失(b)

 

 

淨攜帶額

 

 

總計
Carrying
金額

 

 

累计資產
攤銷

 

 

累積減損損失(b)

 

 

淨攜帶額

 

有限壽命無形資產

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

再次取得特許經營權
　　權利

 

$

272

 

 

$

(269

)

 

$

—

 

 

$

3

 

 

$

268

 

 

$

(265

)

 

$

—

 

 

$

3

 

黃記皇
　　特許經營權相關資產

 

 

21

 

 

 

(5

)

 

 

—

 

 

 

16

 

 

 

21

 

 

 

(4

)

 

 

—

 

 

 

17

 

Daojia平台

 

 

16

 

 

 

(4

)

 

 

(12

)

 

 

—

 

 

 

16

 

 

 

(4

)

 

 

(12

)

 

 

—

 

顧客相關資產

 

 

12

 

 

 

(10

)

 

 

(2

)

 

 

—

 

 

 

12

 

 

 

(10

)

 

 

(2

)

 

 

—

 

其他

 

 

9

 

 

 

(6

)

 

 

—

 

 

 

3

 

 

 

9

 

 

 

(6

)

 

 

—

 

 

 

3

 

 

 

$

330

 

 

$

(294

)

 

$

(14

)

 

$

22

 

 

$

326

 

 

$

(289

)

 

$

(14

)

 

$

23

 

無限期使用無形資產
資產

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

小肥羊商標

 

$

51

 

 

$

—

 

 

$

—

 

 

$

51

 

 

$

51

 

 

$

—

 

 

$

—

 

 

$

51

 

黃記黃
商標

 

 

77

 

 

 

—

 

 

 

—

 

 

 

77

 

 

 

76

 

 

 

—

 

 

 

—

 

 

 

76

 

 

 

$

128

 

 

$

—

 

 

$

—

 

 

$

128

 

 

$

127

 

 

$

—

 

 

$

—

 

 

$

127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

無形資產總額

 

$

458

 

 

$

(294

)

 

$

(14

)

 

$

150

 

 

$

453

 

 

$

(289

)

 

$

(14

)

 

$

150

 

 

(a)
總承載金額和累計攤銷額的變動包括貨幣翻譯調整的影響。

 

(b)
積累的減值損失代表對從道家收購的無形資產進行的減值費用，主要歸因於道家平台。

 

有限壽命無形資產的攤銷費用少於1 百萬和美元 1 百萬，截至2024年和2023年9月30日的季度，和美元2 百萬美元和4 百萬，分別為截至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，未攤銷有限壽命無形資產的預期攤提費用少於百萬1 百萬，預估其餘2024年的款項為百萬，並分別為2025年、2026年、2027年和2028年的每年百萬2 百萬，分別為截至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，未攤銷有限壽命無形資產的預期攤提費用少於百萬

 

第9條 - 短期借款

 

截至2024年9月30日和2023年12月31日，我們分別擁有$銀行短期借款，主要用於管理我們營運子公司的運營資本，該借款由短期投資擔保，分別為$百萬。315 百萬美元和168 百萬，主要用於管理我們營運子公司的運營資本，這些借款由短期投資擔保，分別為$百萬。 nil 15.179 ，利率加權平均為%，並且應在其發行日期後一年內到期。 1.8%，並且應在其發行日期後一年內到期。

 

附註10 – 租賃

 

截至2024年9月30日，我們在中國租用了超過 其他處物業以供我們自有的餐廳使用。 13,000 我們通常與初始期限 其他的租賃協議進行餐廳的租賃。 10 天從發票日期計算，被視為商業合理。 20年我們的大多數租賃協議包含終止期權，如果餐廳虧損一定期間，我們可以提前終止租賃協議。我們通常不具有續租期權。只有當有合理把握我們會行使期權時，才會計入此類期權。我們目前大多數餐廳租賃協議下的租金通常有三種支付方式：（i）固定租金；（ii）固定基本租金或餐廳銷售額的百分比中較高者；或（iii）餐廳銷售額的百分比。大多數租賃要求我們為承租物支付共用區維護費用。除餐廳租賃外，我們還租用辦公空間、 物流 中心和設備。我們的租賃協議不包含任何實質剩餘價值擔保或實質限制性約束。

 

在有限情況下，我們將某些餐廳轉租給特許經營者或與其他第三方將我們的物業出租。這些租賃下的租金通常以固定基本租金或餐廳年銷售額較高者為基準。與特許經營者的轉租協議收入或與其他第三方的租賃合同收入分別包括在我們的簡明綜合收入表中的特許費用和收入以及其他收入中。

17

 

補充資產負債表

 

 

 

 

 

 

 

 

 

 

9/30/2024

 

 

12/31/2023

 

 

賬戶分類

資產

 

 

 

 

 

 

 

 

營運租賃權使用資產

 

$

2,215

 

 

$

2,217

 

 

營運租賃權使用資產

融資租賃使用權資產

 

 

48

 

 

 

41

 

 

PP&E，淨值

租賃資產總額(a)

 

$

2,263

 

 

$

2,258

 

 

 

 

 

 

 

 

 

 

 

 

負債

 

 

 

 

 

 

 

 

目前

 

 

 

 

 

 

 

 

營業租賃負債

 

$

432

 

 

$

426

 

 

應付賬款及其他流動負債

融資租賃負債。

 

 

5

 

 

 

5

 

 

應付賬款及其他流動負債

非流動資產

 

 

 

 

 

 

 

 

營業租賃負債

 

 

1,880

 

 

 

1,899

 

 

非流動經營租賃負債

融資租賃負債。

 

 

51

 

 

 

44

 

 

非流動融資租賃負債

租賃負債總額(a)

 

$

2,368

 

 

$

2,374

 

 

 

 

租賃成本摘要

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

季度結束

 

 

截至本年結束

 

 

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

 

賬戶分類

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

營運租賃成本

 

$

130

 

 

$

125

 

 

$

388

 

 

$

386

 

 

佔用和其他營業費用，
G&A或特許權支出

財務租賃成本

 

 

 

 

 

 

 

 

 

 

 

 

 

 

租賃資產的攤銷

 

 

1

 

 

 

1

 

 

 

4

 

 

 

3

 

 

租金和其他營業費用

租賃負債利息

 

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

 

利息收益，淨額

變量租賃成本(b)

 

 

118

 

 

 

115

 

 

 

330

 

 

 

316

 

 

佔用和其他營業費用
或加盟費用

短期租賃成本

 

 

4

 

 

 

3

 

 

 

10

 

 

 

12

 

 

佔用和其他營業費用
或G&A

分割租金收入

 

 

(5

)

 

 

(5

)

 

 

(15

)

 

 

(16

)

 

加盟費和收入或
其他收入

租賃成本總額

 

$

249

 

 

$

240

 

 

$

719

 

 

$

703

 

 

 

 

(a)
截至2024年9月30日，除了外匯換算的影響外，租賃權利-使用 (“ROU”) 資產減少，主要是由於與固定租金支付的現有租約相關的資產攤銷所致。 我們租約中變動租金支付部分較高。租賃負債的減少與ROU資產的減少相一致。

 

(b)
截至2023年9月30日止的季度和本年至今，公司從與COVID-19大流行影響相關的房東處獲得的租賃讓渡金少於$百萬，分別。1 百萬美元和10 租賃讓渡主要是以在公司餐廳業務受到不利影響期間的租金減免形式提供。公司遵循了FASB職員的解釋指引。 問題與回答 該文件於2020年4月發行並選擇：（1）不評估是否應將因應COVID-19大流行而收到的優惠視為租賃修改，以及（2）假設該優惠已納入現有租賃合同並無合同修改。該優惠在獲得時期被認列為負的變動租金成本。公司從2024年開始不再獲得此等租金優惠。

 

補充現金流量資訊

 

 

 

 

 

 

 

 

截至本年結束

 

 

 

9/30/2024

 

 

9/30/2023

 

計入租賃負債衡量的金額所支付的現金：

 

 

 

 

 

 

來自經營租賃的營運現金流量

 

$

385

 

 

$

401

 

來自金融租賃的營運現金流量

 

 

2

 

 

 

2

 

來自財務租賃的融資現金流量

 

 

4

 

 

 

4

 

以租賃負債換得的使用權資產(c):

 

 

 

 

 

 

營運租賃

 

$

263

 

 

$

281

 

融資租賃

 

 

10

 

 

 

4

 

 

(c)
此用於為租賃負債取得的ROU資產進行的補充非現金披露中包括 分別為截至2024年和2023年9月30日至今的獲得新ROU資產的租賃負債增加278 百萬美元和281 的百萬美元，以及 因修改或其他重新評估事件而導致的租賃負債或ROU資產調整，導致一筆5 百萬減少和百萬增加於截至2024年和2023年9月30日止年度的租賃負債。4 分別是2024年和2023年迄今為止租賃負債的百萬增加。

18

 

租賃期限和折扣率

 

 

 

 

 

 

 

 

9/30/2024

 

 

9/30/2023

 

加權平均剩餘租期（年）

 

 

 

 

 

 

營運租賃

 

 

7.0

 

 

 

7.1

 

融資租賃

 

 

10.9

 

 

 

11.1

 

 

 

 

 

 

 

 

加權平均折現利率

 

 

 

 

 

 

營運租賃

 

 

4.6

%

 

 

4.9

%

融資租賃

 

 

4.7

%

 

 

5.0

%

 

未來租金支付和租賃負債摘要

 

2024年9月30日的租賃負債到期情況如下：

 

 

 

金額
營運租賃

 

 

金額
財務租賃

 

 

總計

 

2024年剩餘部分

 

$

158

 

 

$

2

 

 

$

160

 

2025

 

 

484

 

 

 

7

 

 

 

491

 

2026

 

 

438

 

 

 

7

 

 

 

445

 

2027

 

 

383

 

 

 

7

 

 

 

390

 

2028

 

 

318

 

 

 

7

 

 

 

325

 

此後

 

 

932

 

 

 

42

 

 

 

974

 

總未折扣租賃付款

 

 

2,713

 

 

 

72

 

 

 

2,785

 

減：隱含利息(d)

 

 

401

 

 

 

16

 

 

 

417

 

租賃負債現值

 

$

2,312

 

 

$

56

 

 

$

2,368

 

 

(d)
由於無法輕易確定租約中的隱含利率，我們使用根據起租日期提供的資訊計算隱含利息和租賃付款的增量借款利率來確定。對於2019年1月1日之前已開始的營運租約，我們使用了增量借款利率。

 

截至2024年9月30日，我們簽訂了未開始的其他租約協議，總未折扣的最低租賃付款為$124 百萬。這些租約將於2024年第四季至2026年之間開始，租賃期為 1 年至 20 年

 

 

附錄11 - 公平值衡量 和揭示

 

公司的金融資產和負債主要包括現金及現金等價物、短期投資、長期銀行存款及票據、應收帳款、應付帳款、短期借款和租賃負債，這些資產和負債的賬面值一般近似其公平值。

 

公司的金融資產還包括其對美團的股權投資，根據每個報告期結束時股票的收盤市場價格衡量公平值，隨後的公平值變動記錄在我們的綜合損益表中。

 

下表是我們的金融資產經常性衡量或以公平值披露的摘要，以及該衡量所屬的公平值層次。公司將其現金等價物、短期投資、長期銀行存款和票據，以及股權投資分類為公平值層次的Level 1或Level 2，因為它分別使用市場報價或替代定價來源和利用市場可觀察的輸入模型判斷它們的公平值。 沒有 在截至2024年9月30日和2023年止的季度和年度內，在公平值層次內的層級之間發生了轉移。

19

 

 

 

 

 

 

公允價值衡量或披露
於2024年9月30日

 

 

 

結存
2024年9月30日

 

 

一級

 

 

第二級

 

 

等級 3

 

現金等價物：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

$

475

 

 

 

 

 

$

475

 

 

 

 

固收債券(a)

 

 

319

 

 

 

21

 

 

 

298

 

 

 

 

貨幣市場基金

 

 

44

 

 

 

44

 

 

 

 

 

 

 

現金等價物總額

 

 

838

 

 

 

65

 

 

 

773

 

 

 

—

 

短期投資：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

 

805

 

 

 

 

 

 

805

 

 

 

 

結構性存款

 

 

391

 

 

 

 

 

 

391

 

 

 

 

變量回報投資

 

 

142

 

 

 

142

 

 

 

 

 

 

 

短期投資總額

 

 

1,338

 

 

 

142

 

 

 

1,196

 

 

 

—

 

長期銀行存款和票據：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

 

455

 

 

 

 

 

 

455

 

 

 

 

固收銀行票據(a)

 

 

478

 

 

 

 

 

 

478

 

 

 

 

總長期銀行存款和票據

 

 

933

 

 

 

—

 

 

 

933

 

 

 

—

 

權益投資：

 

 

 

 

 

 

 

 

 

 

 

 

股權證券投資

 

 

94

 

 

 

94

 

 

 

 

 

 

 

總計

 

$

3,203

 

 

$

301

 

 

$

2,902

 

 

$

—

 

 

 

 

 

 

 

公平價值評估或披露
截至2023年12月31日

 

 

 

結存
2023年12月31日

 

 

一級

 

 

第二級

 

 

等級 3

 

現金等價物：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

$

293

 

 

 

 

 

$

293

 

 

 

 

固收債券資產(a)

 

 

14

 

 

 

14

 

 

 

 

 

 

 

貨幣市場基金

 

 

11

 

 

 

11

 

 

 

 

 

 

 

現金等價物總額

 

 

318

 

 

 

25

 

 

 

293

 

 

 

—

 

短期投資：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

 

1,113

 

 

 

 

 

 

1,113

 

 

 

 

固收債券資產(a)

 

 

200

 

 

 

 

 

 

200

 

 

 

 

結構性存款

 

 

138

 

 

 

 

 

 

138

 

 

 

 

變量回報投資

 

 

21

 

 

 

21

 

 

 

 

 

 

 

短期投資總額

 

 

1,472

 

 

 

21

 

 

 

1,451

 

 

 

—

 

長期銀行存款和票據：

 

 

 

 

 

 

 

 

 

 

 

 

定期存款

 

 

903

 

 

 

 

 

 

903

 

 

 

 

固收銀行票據(a)

 

 

362

 

 

 

 

 

 

362

 

 

 

 

總長期銀行存款和票據

 

 

1,265

 

 

 

—

 

 

 

1,265

 

 

 

—

 

股票投資：

 

 

 

 

 

 

 

 

 

 

 

 

股權證券投資

 

 

45

 

 

 

45

 

 

 

 

 

 

 

總計

 

$

3,100

 

 

$

91

 

 

$

3,009

 

 

$

—

 

 

(a)
分類為持有至到期投資，按攤銷成本計量。

 

公司根據監管要求，需要存放銀行存款或購買保險，以確保公司發行的預付存儲價值卡的餘額。$63 百萬美元的長期銀行存款和票據中的時間存款在2024年9月30日前，被限制使用。21 百萬美元的短期投資中的時間存款和28 百萬美元的長期銀行存款和票據中的時間存款在2023年12月31日前，被限制使用。

 

一次性公允價值評估

 

此外，公司的某些餐廳級資產（包括營運租賃權利用率資產及固定資產）、商譽和無形資產根據不可觀察的輸入（第3級）以非定期方式按公平價值計量，如果確定有損壞。

20

 

在確定餐廳層級資產的公平價值時，公司考慮了市場參與者的資產最高和最佳利用，這是以運營餐廳的預測折現現金流和市場參與者為了轉租ROU資產並收購其餘餐廳資產而支付的價格所代表的，即使該使用方式與公司目前使用方式不同。稅後現金流納入我們認為特許經營者會采取的合理假設，例如銷售增長，並包括我們將在符合市場條件下的特許合同中收取的特許權使用費扣除。在公平價值計算中使用的折現率是我們估計的特許經營者在購買類似餐廳及相關長期資產時希望收到的所需報酬率。在餐廳層級資產的最高和最佳利用代表通過轉租運營租賃ROU資產並收購其餘餐廳資產的情況下，公司繼續使用這些資產運營其餐廳業務，這與通過經營餐廳概念實現營業收入增長的長期策略一致。

根據每個相關測量日期，如果餐廳層級資產被確定存在減值，公平價值主要由市場參與者支付的價格來代表，用以轉租運營租賃ROU資產並收購其餘餐廳資產，這反映了資產的最高和最佳利用。在公平價值評估中使用的重要不可觀察輸入包括市場租金價格，這些價格是通過獨立的估值專家的協助確定的。直接比較方法是通過假定對現有狀態的每個物業進行轉租並可空置的方式來使用估值技術。參照在相關市場中可用的租賃交易，選擇了附近相近的可比物業並進行調整，以考慮例如地理位置和物業規模等因素的差異。

 

以下表格呈現截至2024年9月30日的季度和今年迄今為止所有非定期的公平價值衡量金額，這些金額是基於不可觀察的輸入 (第3級)。這些金額不包括在相應期末日期前在餐廳進行的公平價值衡量，而這些餐廳後來被關閉或轉讓加盟。

 

 

 

季度結束

 

 

截至本年結束

 

 

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

 

賬戶分類

餐廳水平的減值(a)

 

$

—

 

 

$

—

 

 

$

7

 

 

$

14

 

 

關閉和減值費用，淨值

 

(a)
餐廳水平 減值費用記錄在關閉和減值費用中，主要是由我們對正在營運的餐廳的長壽命資產進行半年度減值評估而導致，該等餐廳在減值時正在營運，並且尚未提供轉售權。在考慮相應期間內記錄的減值費用後，截至相關測量日期，該等資產的公平價值為$23 百萬美元和55 百萬。

 

附註12－所得稅

 

 

 

季度結束

 

 

截至本年結束

 

 

 

9/30/2024

 

 

9/30/2023

 

 

9/30/2024

 

 

9/30/2023

 

所得稅負擔

 

$

119

 

 

$

100

 

 

$

309

 

 

$

296

 

有效稅率

 

 

27.3

%

 

 

27.5

%

 

 

26.6

%

 

 

27.2

%

 

2024年9月30日結束的季度的較低有效稅率主要是由於我們在美團投資的公允價值變動對其產生的影響。

 

至2024年9月30日結束的今年截至目前為止的較低有效稅率主要是由於某些不可抵扣項目減少和我們在美團投資的公允價值變動所帶來的有利影響。

 

2017年12月，美國頒布了《減稅和就業法案》（稅法），其中包括了廣泛的範圍的稅改。該法案要求一位美國股東對其某些外國子公司賺取的全球無形低稅所得（GILTI）徵稅。我們選擇了將當年GILTI稅視為即期費用並納入估算年度有效稅率。

 

2022年8月，在美國簽署了IRA法案，其中包含某些稅收措施，包括對某些大型企業徵收公司替代最低稅（"CAMT"） 15％。2022年12月27日，美國財政部和國稅局（"IRS"）發布了2023-7號通知，宣佈他們打算發布旨在解決新CAMt應用的擬議法規。2023年和2024年，還將發布其他通知或擬議法規，以繼續就擬議法規發布前有關某些CAMt問題提供臨時指引。公司將密切關注監管發展，並繼續評估對我們的基本報表可能造成的影響。

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

 

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