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Yum China Announces Partnership With Universal Beijing Resort

Zacks Equity Research

Yum China Holdings, Inc. YUMC and Universal Beijing Resort have announced a strategic partnership to provide entertainment and dining experiences across China. Universal Beijing resort is a widely-anticipated theme park destination, which is scheduled to open in 2021.

The eight-year partnership includes a series of cross-promotional marketing activities across China along with a fresh KPRO restaurant at the Universal CityWalk Beijing retail, dining and entertainment complex. Also, both parties will work together on areas including — IP cooperation, online activations, themed stores and in-store activities.

Yum China's special promotions will be conducted across its KFC, Pizza Hut and Taco Bell brands. The strategy includes more than 8,000 stores and will also cater to its 230 million digital members.

Courtesy of marketing campaigns between Yum China and Universal Parks & Resorts' IP partners in China, the collaboration is expected to meet the changing needs of consumers and market.

Partnership to Drive Performance

Under the partnership, Yum China and Universal Beijing will collaborate to launch a series of online and offline marketing activities to provide opportunities for Universal theme park's guests, movie fans and customers to enjoy Universal-styled experiences.

Johnson Huang, General Manager of KFC China, stated, “Joint membership activities held by both parties will offer consumers added convenience and plenty of fun and exciting experiences, such as exploring the opportunity of enabling Yum China's digital members to purchase resort tickets through our digital platforms.”

Moreover, the company will also open a new KPRO restaurant at Universal CityWalk Beijing complex. The outlet will offer a tailor-made resort menu as well as customized theme of Colonel's Green Kitchen restaurant design. This restaurant format developed by KFC China will be a perfect complement to the theme park experience.

Backed by solid expansion strategies and robust brand image, shares of the company have surged 38.6% compared with the industry’s growth of 19.2%.



Zacks Rank & Key Picks

Yum China currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the same space are Arcos Dorados Holdings Inc ARCO, Noodles & Company NDLS and Chipotle Mexican Grill, Inc CMG. Arcos Dorados and Noodles & Company currently sport a Zacks Rank #1, while Chipotle Mexican Grill carries a Zacks Rank #2 (Buy).

Arcos Dorados 2020 earnings are expected to rise 35.5%.

Noodles & Company’s earnings surpassed estimates in three of the trailing four quarters, the average being 4.6%.

Chipotle Mexican Grill has expected earnings per share growth rate of 19.7% for three-five years.

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