YUM CHINA (09987) announces its performance for 2023, with a net profit of 827 million US dollars, a year-on-year increase of 87%. It plans to distribute 0.16 US dollars per share.

Yum China (09987) announced its financial performance for the fourth quarter and full year of 2023. In the fourth quarter of 2023, total revenue increased by 19% to $2.49 billion (or 21% growth, excluding the impact of foreign exchange). Operating profit increased by 170% to $110 million. Core operating profit grew by 324%. Net profit was $97 million, an 81% year-on-year increase. Earnings per diluted share were $0.23. In the fourth quarter of 2023, system sales increased by 21% compared to the same period last year, excluding the impact of foreign exchange. This growth was mainly driven by a 12% contribution from net new store openings, 4% growth in same-store sales, and the low base effect from temporary store closures during the previous year's pandemic. In 2023, total revenue increased by 15% to $10.98 billion (or 21% growth, excluding the impact of foreign exchange). Operating profit grew by 76% to $1.1 billion. Core operating profit increased by 79%. Net profit was $827 million, an 87% year-on-year increase. Earnings per diluted share were $1.97. In 2023, system sales increased by 21% compared to the same period last year, excluding the impact of foreign exchange. This growth was mainly driven by a 9% contribution from net new store openings, 7% growth in same-store sales, and the low base effect from temporary store closures during the previous year's pandemic. The total number of stores increased by 13% in 2023, with a net addition of 1697 new stores, exceeding the annual net new store target. During the fourth quarter, the company increased its share repurchase program and repurchased 7.5 million common shares for a total of $336 million. In 2023, the company repurchased a total of 12.4 million common shares, representing approximately 3% of the company's outstanding common shares. As of December 31, 2023, the company still had approximately $1.5 billion in authorized repurchase for future buybacks. In 2024, the company plans to further increase shareholder returns: the board of directors announced a 23% increase in Yum China's cash dividend to $0.16 per share of common stock, which will be paid on March 26, 2024, to shareholders registered as of March 5, 2024. The company also plans to repurchase $1.25 billion of common stock through open market transactions in the United States and Hong Kong. Additionally, in 2024, the company plans to net add approximately 1500 to 1700 new stores. Capital expenditures are estimated to be between $700 million and $850 million.