=Yum China Holdings (YUMC) reported earnings on Wed 5 Apr 2017 (a/h)

Yum China Holdings (YUMC) reported a 21% increase in fiscal first quarter net income, and a 1% rise in same-store sales.

Yum China reported net income of $175 million, or 45 cents per share, in the quarter that ended to Feb. 28 and included Chinese New Year spending. The company said it opened 133 new restaurants during the quarter; Yum China began trading as a separate company last October after it was carved out of Yum Brands (YUM).

From the release:

• Net income increased 21% to $175 million.
• Operating profit grew 22%, and 27% excluding F/X, primarily aided by the impact of retail tax structure reform. F/X negatively impacted operating profit by $12 million.
• Basic earnings per share increased 14% to $0.45 and diluted EPS increased 12% to $0.44.
• Same-store sales grew 1%, including growth of 1% at KFC and 2% at Pizza Hut Casual Dining
• Restaurant margin for Yum China increased 3.7 percentage points to 23.0%, primarily aided by the impact of retail tax structure reform and profit generated from additional sales at KFC and Pizza Hut Casual Dining, partially offset by wage inflation and commodity inflation.

Earlier this week, AB analysts said the stock could rise to $31, and the stock was recently trading at $30.99. However, AB projected lower sales growth in the quarter.

Yum China said its 7,600 restaurants represent a big lead on western and Chinese competitors, according to a prepared release. Its conference call on results will be held at 8 p.m. EST. See our post Yum China Earnings: Stock Has 15% Upside, AB Says.