Why Yum China Holdings Stock Was So Tasty to Investors This Week
Economic growth in China might not be what it once was, but certain imported businesses aren't doing too badly. Case in point: restaurateur Yum China Holdings (NYSE: YUMC), which recently posted quarterly earnings that cheered investors. They also inspired one analyst to upgrade her recommendation on the stock, helping to propel it to a nearly 16% week-to-date gain as of early Friday morning, according to data compiled by S&P Global Market Intelligence.
Yum China unveiled its second-quarter fundamentals after market hours Monday, revealing that it managed to boost revenue by 1% year over year to almost $2.7 billion -- a new quarterly record. Admirably, it accomplished this feat despite both the country's general economic trajectory and a 4% dip in same-store sales. Both GAAP and non-GAAP (adjusted) net income rose to $212 million, or $0.55 per share, from $197 million (GAAP) and $199 million (adjusted) profit figures in the year-ago period.
Although the company missed the consensus analyst estimate for revenue, it easily beat pundit projections for adjusted net income.
Source Fool.com
