Yum China delivered a solid Q3 2024 result, underpinned by resilient top-line growth, improving margins, and strong cash generation. Revenue reached USD 3.071 billion, up 5.4% year over year (YoY) and 14.6% quarter over quarter (QoQ), while gross profit rose to USD 550 million for a gross margin of 17.9%. Operating income was USD 371 million (operating margin 12.1%), and net income stood at USD 297 million (net margin 9.7%), translating to earnings per share (EPS) of USD 0.77. EBITDA was USD 499 million with an EBITDA margin of 16.2%. Free cash flow amounted to USD 244 million, and net cash provided by operating activities was USD 409 million, underscoring robust cash generation.
Balance sheet remains solid. Cash and cash equivalents plus short-term investments totaled USD 2.53 billion, while total debt stood at USD 2.68 billion and net debt was approximately USD 1.49 billion, yielding a conservative net debt to EBITDA perspective given the current quarter’s earnings power. The company exhibits healthy liquidity with a current ratio of ~1.29 and a cash conversion cycle of negative ~60 days, reflecting efficient working capital management.
The quarterly performance reinforces Yum China’s market leadership in China’s quick-service restaurant (QSR) segment, supported by strong brand portfolio (KFC, Pizza Hut) and ongoing optimization of operating leverage. Management commentary (where available) points to continued demand resilience in core cities, ongoing store expansion, and a favorable cost trajectory as scale benefits accrue. Investors should monitor SSS trends, input costs, competitive dynamics, and the pace of new store openings, particularly in tier‑2/3 markets, as key indicators of sustained growth and margin trajectory.