Yum China Holdings Inc (NYSE: YUMC) on Wednesday reported fourth quarter sales and earnings that beat analysts’ estimates, but the shares were still down more than 4 percent on Thursday morning.
The company said total revenue rose 13 percent to $2.2 billion in the fourth quarter, beating analysts’ estimate of $2.15 billion.
Excluding certain items, the company earned 19 cents per share in the fourth quarter, an increase of 12 percent. Analysts had estimated adjust earnings of 18 cents per share.
"2017 marks the first full year of Yum China as an independently listed company and we are pleased with high single-digit system sales growth and double-digit operating profit growth," said current CEO Micky Pant. "I am very pleased to hand over the reins to Joey Wat as our new CEO from March 1st; she has demonstrated an excellent track record and is the right person leading Yum China as we head into 2018, with challenging sales and profit laps particularly in the first half of the year."
Total Same-store sales increased 5 percent in the fourth quarter. Strong growth in the KFC unit was offset by the disappointing growth in its Pizza Hut unit. Fourth quarter same-store sales in the Pizza Hut grew 1 percent, missing analysts’ estimate of a 1.5 percent gain, according to Thomson Reuters I/B/E/S.