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Investing.com -- Yum China Holdings Inc (NYSE:YUMC) reported in-line fourth-quarter results and posted a smaller-than-expected comparable sales decline, sending to its shares rising more than 2% in premarket trading Thursday.
The American-Chinese fast food restaurant operator posted fourth-quarter earnings per share of $0.30, aligning with analyst expectations. Revenue for the quarter totaled $2.6 billion, also matching the consensus projection of $2.61 billion.
Comparable sales declined 1%, better than the projected 1.31% drop.
KFC saw a 1% decline in same-store sales, compared to an estimated 0.33% decrease, while Pizza Hut reported a 2% decline, in line with the expected 2.25% drop.
Restaurant margins improved to 12.3%, up from 10.7% in the prior year, surpassing the consensus estimate of 11.1%.
Adjusted operating profit rose 30% year-over-year to $151 million, in line with expectations of $151.3 million.
"We closed the year with a strong fourth quarter, propelling us to a number of record highs in 2024. In the fourth quarter, our system sales growth surpassed the restaurant industry’s growth rate," said Joey Wat, CEO of Yum China.
"Our same-store sales index improved sequentially to 99% of prior year levels, driven by the eighth consecutive quarter of same-store transaction growth. OP margin expanded by 140 basis points, and restaurant margin increased by 160 basis points, both on a year-over-year basis."
The company remains on track to return $4.5 billion to shareholders between 2024 and 2026. Looking ahead, Yum China plans to open between 1,600 and 1,800 net new stores in fiscal 2025, with capital expenditures projected to range between $700 million and $800 million.