Yum China's fourth-quarter profit exceeded expectations due to robust growth of its KFC stores as the fast food chain reported its financial earnings for the first time since spinning off from its U.S. parent.
The quarterly net income was $88 million, or 23 US cents per share, on revenue of $1.98 billion. Analysts polled by Thomson Reuters had estimated a profit of 8 cents per share on revenue of $2.05 billion.
Yum China, which operates over 7,500 outlets in China's mainland in over 1,100 cities at the end of 2016, plans to open 600 new stores in the market each year. KFC's same-store sales grew 1 percent in the fourth quarter while those of Pizza Hut shed 3 percent, while system-wide revenue added 4 percent.
Yum China started to trade as an independent company separate from its US parent in November.
Its full-year operating profit jumped 31 percent year on year to $640 million as it opened new outlets.
"We are well positioned to drive strong operating performance and generate high returns for our shareholders over the long run," Yum China CEO Micky Pant said in a statement.
"We believe the majority of our restaurants in China are yet to be built," Pant added.
