Yum Brands Ends 2019 Strong, but China Virus Could Cut Sales

Yum Brands Ends 2019 Strong, but China Virus Could Cut Sales

KFC owner Yum Brands ended 2019 with better-than-expected sales, but the impact of the new virus in China could weigh heavily on its first quarter results.

KFC owner Yum Brands ended 2019 with better-than-expected sales, but the impact of the new virus in China could weigh heavily on its first quarter results.

Yum has a strong presence in China, which makes up 27% of KFC’s sales and 17% of Pizza Hut’s sales.

Yum said Thursdsay that fourth quarter revenue rose 9% to $1.7 billion. That beat Wall Street’s forecast of $1.65 billion, according to analysts polled by FactSet.

Yum, based in Louisville, Kentucky, reported net income of $488 million, or $1.58 per share. Excluding one-time items, the company earned $1 per share, which fell short of Wall Street’s forecast for $1.13.

Same-store sales, or sales at stores open at least a year, rose 2% for the fourth quarter. That was in line with Wall Street’s forecast.

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