Yum China Holdings Inc. shares rose more than 2% in the extended session Tuesday after the operator of KFC, Pizza Hut and other fast-food brands in China reported first-quarter earnings above Wall Street expectations despite “regional resurgences” in COVID-19 cases in China resulting in less foot traffic to its stores and in-store gatherings. Yum China said it earned $230 million, or 53 cents a share, in the quarter, compared with $62 million, or 16 cents a share, a year ago. Adjusted for one-time items, the company earned 54 cents a share, compared with 16 cents a share a year ago. Sales rose 46% to $2.56 billion, with same-store sales rising 10%. Analysts polled by FactSet expected Yum China to report adjusted earnings of 46 cents a share on sales of $2.32 billion. Yum China said it expects “a full recovery of same-store sales to pre-COVID-19 levels to take time,” and the unevenness of recovery is likely to linger due to occasional outbreaks. “Dine-in traffic, as well as sales at our transportation locations, remains well below 2019 levels,” Yum China said.
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