Yum China warns quarterly profit to take over 50% hit due to Delta variant
- Wall Street slips as tax uncertainty, tech losses weigh
- Invesco (IVZ) Reportedly in Talks to Merge With State Street's (STT) Asset Management Business, Citi Sees More Cons than Pros
- Jefferies Raises Price Targets on Alphabet (GOOGL) and Facebook (FB) as They Are Still Inexpensive Relative to Growth, Reiterates Snap (SNAP) as a Best Growth Idea
- Tesla (TSLA) Could Deliver 900K EV Units This Year and 1.3M in 2022 - Wedbush
- Dollar hits three-week high, boosted by recent upbeat data, Fed taper view
FILE PHOTO: A KFC restaurant is seen in Shanghai, China March 12, 2019. REUTERS/Aly Song
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
(Reuters) -KFC operator Yum China Holdings Inc said on Tuesday its adjusted operating profit would take a 50% to 60% hit in the third quarter as the spread of the Delta variant in China led to restaurant closures and "sharply reduced sales".
U.S.-listed shares of Yum China fell 3% in extended trading.
The company said over 500 of its restaurants in 17 provinces were closed or offered only takeaway and delivery service at the peak of the Delta variant's outbreak in August, leading to a mid-teens percentage drop in same-store sales.
"While the outbreak has subsided in recent days and restaurant traffic is gradually recovering, our operations continue to be heavily impacted," Yum China said, adding it expects a recovery in same-store sales "to take time".
The company said its profit margins were also being pressured by higher commodity prices, wage inflation and an increase in promotions.
(Reporting by Uday Sampath in Bengaluru; Editing by Krishna Chandra Eluri)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Yum China (YUMC) says operations continue to be heavily impacted by delta variant outbreak
- Gay war veteran speaks out for equal rights in Ukraine's military
- U.N. envoy of ousted Afghan government asks to keep New York seat
Create E-mail Alert Related CategoriesGeneral News, Guidance, Reuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!