Shares of Yum China Holdings Inc. YUMC, +4.14% reported third-quarter per-share profit that topped expectations, and said it expected to continue opening stores as planned this year even as COVID-19 restrictions and inflation fears weigh on business. The company — which runs KFC, Pizza Hut and Taco Bell restaurants in China — reported net income of $206 million, or 49 cents a share, compared with $104 million, or 25 cents a share, in the prior-year period. Adjusted earnings were also 49 cents a share. Revenue rose 5% to $2.69 billion, compared with $2.55 billion in the quarter last year. Same-store sales were flat year-over-year, with a recovery in July and August and a drop in September as COVID-19 restrictions tightened, executives said. Analysts polled by FactSet expected earnings per share of 31 cents, on revenue of $2.72 billion. Executives said that heading into the fourth quarter, “new infections continued to increase in October with resurgent outbreaks across China,” temporarily closing or restricting service at around 1,400 of its stores that month. Citing government statistics, they said fewer people were traveling and spending for the seven-day National Day holiday that started on Oct. 1. “Nationwide, consumers are traveling less and reducing expenditures,” executives said. The fourth quarter, they said, is usually weaker for demand. But they said they still expected to open around 1,000 to 1,200 new stores for the year overall. Shares rose 2.9%.
