Yum China sales suffer as Omicron cases surge -Breaking
(Reuters) – Yum China Holdings, (NYSE:) Inc stated Monday that a recent COVID-19 resurgence had impacted its first quarter sales. This has impeded the recovery of KFC, Pizza Hut, and Taco Bell restaurants.
Yum China reported that same-store sales fell by 20% in March compared to a year ago, and nearly 4% overall for January and February.
The company stated that the situation had rapidly deteriorated since March with Omicron, a highly transmissible variant, causing epidemics in China’s economically vital regions Guangdong (Shanghai, Shandong, Shandong) and Jilin.
Last year’s same-store sales fell by 1% for the restaurant chain, a decrease of 9% in 2020. This year’s sales were affected by strict restrictions on travel and dine-out due to Omicron Coronavirus.
Company forecasts an operating profit of between $165 and $200 million for its first quarter, up from $342 million in the previous year.
China has already reported more COVID-19-symptomatic cases in China than any time since 2021. The highly transmissible Omicron variant causes outbreaks from Shenzhen to Shanghai.
As of Sunday, more than 1,100 Yum China restaurants were either temporarily shut down or only offering takeout and delivery.
Yum China’s shares have suffered from a recent beating due to an auditing disagreement between Beijing and Washington. They fell by 2% in premarket trades.
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