Yum China Holdings (NYSE:YUMC) released its fiscal 2020 first-quarter results after market close on Tuesday, revealing notable declines in its business due to the SARS-CoV-2 coronavirus outbreak.
The quarter saw the company reap the equivalent of $1.75 billion in revenue. Non-GAAP (adjusted) net income was $63 million, or $0.16 per share.
Those figures represented steep year-over-year declines, as the coronavirus brought the Chinese economy to a near-halt. Revenue was down 24% on the back of a same-store sales figure that fell 15%. Adjusted net profit saw a far more precipitous drop at 68%.
The headline numbers did not meet analyst expectations. On average, those prognosticators were modeling $1.87 billion in revenue and $0.17 for per-share net profit. It should be noted, though, that relatively few analysts track the stock, so profitability estimates in particular can vary widely.
With the severe outbreak of the coronavirus, Yum China had to close some restaurants and scale down operations at others, offering takeout and delivery services without the option to dine in. On the financial side, the company has temporarily suspended share repurchases. It also will not pay a dividend in either of the two upcoming quarters.
Although it did not provide specific revenue or profitability guidance, Yum China did say that "[t]he situation in China is gradually stabilizing, but we remain cautious as our restaurant traffic is still below pre-outbreak levels. We expect an extended recovery period, and that the pace will be uneven across regions, dayparts and segments."
On Tuesday, before the results were published, Yum China shares essentially traded flat while the major equity indexes and fellow consumer goods stocks generally slumped on the day.