|Bid||43.60 x 0|
|Ask||43.80 x 0|
|Day's Range||43.80 - 43.80|
|52 Week Range||34.80 - 46.20|
|Beta (5Y Monthly)||0.83|
|PE Ratio (TTM)||30.61|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar 03, 2020|
|1y Target Est||N/A|
Olive Garden parent's results still surpassed expectations, while shares rose on solid outlook Continue reading...
(Bloomberg) -- Yum China Holding Inc. has filed confidentially for a Hong Kong listing that could raise about $2 billion, according to people familiar with the matter, joining other U.S.-traded Chinese companies seeking share sales in the financial hub.The restaurant operator running outlets of U.S. brands including KFC, Pizza Hut and Taco Bell in China submitted a stock listing application to the Hong Kong exchange in recent weeks, the people said, asking not to be identified because the information is not public. The New York-listed company has been working with China International Capital Corp. and Goldman Sachs Group Inc. on preparations for the share sale, Bloomberg News reported in January.The listing would be the latest in a growing number of U.S.-listed Chinese companies turning to the Hong Kong market for fresh funds, as tensions between the two countries and fallout from the Luckin Coffee Inc. accounting scandal threaten to limit Chinese firms’ access to U.S. capital markets. Chinese online retailer JD.com raised $3.9 billion in its Hong Kong listing Thursday, while gaming company NetEase Inc. raised $2.7 billion for its Hong Kong share sale on June 11.China Inc. Leaving U.S. Market at Fastest Pace Since 2015Details of the proposed share sale are not final and the company could decide not to pursue the listing, the people said. A representative for Yum China declined to comment.Yum China operates 9,295 restaurants in over 1,400 cities in the country, according to its website. China’s biggest fast-food chain operator reported a 24% year over year decline in first quarter revenue, and said it expects an extended recovery period from the effects of the coronavirus pandemic on its business.The company pivoted in February by introducing so-called “contactless” delivery and business lines such as catering and delivering raw food for home-cooking. By late March, it said 95% of its stores in China were either partially or fully open.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Yum China Holdings is moving ahead with its plans for a potential US$2 billion stock offering in Hong Kong, as the operator of KFC, Pizza Hut and Taco Bell in the mainland seeks to become the latest US-listed Chinese firm to pursue a secondary listing in the city, according to people familiar with the matter.Yum China has been working with investment banks Goldman Sachs and China International Capital Corporation on its Hong Kong listing plans since the beginning of the year, but it is adding additional brokers and support staff as it nears the finish line on the deal.The firm is hosting auditions for roles on the bumper offering on Friday, the people familar said, requesting anonymity as the information was not public. Yum China spokespeople did not immediately reply to a request for comment.The Yum China's move comes hot on the heels of successful Hong Kong debuts by NetEase, the world's second-largest mobile games publisher, and JD.com, one of China's largest e-commerce sites.Shares of JD.com rose 4.2 per cent to HK$235.60 in mid-morning trading in Hong Kong on Thursday after raising US$3.88 billion. NetEase jumped 6 per cent on its first trading day in the city after raising US$2.7 billion.Similar to its peers, Yum China is seeking to diversify its shareholder base and believes investors in Asia will be more familiar with consumer trends in its home market. Management is also alive to mounting political risk as relations fray between the US and China. It sees a listing in Hong Kong as going some way towards mitigating this risk, said one of the people familiar.A spokesman for Yum China said the firm does not comment on rumors or market speculation in response for a request for comment.Yum China would be the fourth high-profile listing by a major Chinese company with American depositary receipts (ADRs) in the past eight months since Chinese e-commerce giant Alibaba Group Holding's US$12.9 billion secondary listing in November. Alibaba is the parent company of the South China Morning Post.The US Senate recently approved a bill requiring Chinese firms with ADRs to submit their audits to reviews by the Public Company Accounting Oversight Board and analysts expect US-China relations to worsen ahead of the 2002 US presidential election in November.As a result, there are expectations of additional "homecomings" by other Chinese companies seeking secondary listings closer to home in Hong Kong.More than 200 Chinese companies trade on US stock exchanges worth over US$1.2 trillion, Bloomberg data showed, of which 26, including Yum China, would potentially qualify for secondary listings in Hong Kong this year, according to research by China Renaissance and the Post."With more ADRs returning home, we expect the Hong Kong market to provide investors a diversified and higher growth investment universe going forward," said Mike Shiao, chief investment officer, Asia excluding Japan, at investment manager Invesco.The Hong Kong listing comes almost four years since Yum China was spun off from Yum! Brands and listed in New York in November 2016. The company operates more than 9,200 restaurants in 1,400 cities and towns in the mainland.Yum China said its revenue declined 24 per cent to US$1.75 billion in the first quarter and profit fell 72 per cent to US$62 million. The coronavirus pandemic forced the firm to close as many as 35 per cent of its stores across the mainland.The company said in April that the pace of recovery was "uneven" and sales and foot traffic remained below pre-outbreak levels as customers continued to avoid going out and practising social distancing. As of April 28, same-store sales were down 10 per cent in the month.Yum China said it would suspend share buy-backs and dividends in the second and third quarter until it had a better read on how the pandemic would affect the broader economy and consumer behaviour.The company said at the time the coronavirus, which causes the disease Covid-19, is likely to have a "materially and extended adverse impact" on its financial results for the year.Despite management's conservative outlook, its shares are trading near all-time highs. On Wednesday, Yum China's shares rose 7.2 per cent to close at US$50.68 in New York.Stock research analysts have zoomed in on Yum China's early adoption of a digital platform which they believe has positioned the company to benefit from evolving consumer demand for digital ordering and takeaways. Yum China's delivery sales grew 40 per cent year-on-year in the first quarter.Digital orders, including delivery, mobile orders and kiosk orders, accounted for 84 per cent of sales at KFC and 65 per cent of sales at Pizza Hut in the first quarter of 2020, an increase of 29 and 36 percentage points, respectively, year over year.Stores openings have gradually resumed since March and its coffee offering has expanded, analysts also noted.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]
Dave & Buster's (PLAY) first-quarter fiscal 2020 results reflect poor comparable restaurant sales and reduced traffic due to the closure of dining rooms.
(Bloomberg Opinion) -- Bankers hoping for a bonanza from Hong Kong share sales by U.S.-listed Chinese companies should contain their excitement. Low fees and the hangover of the Luckin Coffee Inc. scandal are likely to put a damper on the rewards.Hong Kong’s market for stock offerings is booming. Online retailer JD.com Inc. is raising as much as $4.1 billion in the world’s second-biggest share sale this year, days after internet gaming company NetEase Inc.’s $2.7 billion listing. There’s a line of candidates for Hong Kong flotations, driven by the prospect that the U.S. will delist companies that can’t commit to proving they are free from foreign government control.That’s a boon for the city and its stock-exchange operator, after China’s plans to impose a national security law raised questions over Hong Kong’s future as an international financial center. The NetEase and JD.com offerings were both heavily oversubscribed by retail and institutional investors, showing the strength of demand for U.S.-traded Chinese tech companies. These and upcoming deals may not deliver the windfall to investment bankers that such a pipeline would usually promise, though.For one thing, secondary listings earn a lot less in fees than initial public offerings. NetEase is paying the banks that worked on its Hong Kong flotation just 0.25% of the proceeds, compared with a standard rate for IPOs of 2% to 3%, as my colleague Julia Fioretti notes. Such deals earn less because the companies are already listed, meaning less work is required from banks to introduce their businesses to investors.Secondly, not all companies eligible to sell shares in Hong Kong can be expected do so. There are 42 Chinese companies in the U.S. that qualify for Hong Kong secondary listings, according to analysts at UBS Group AG. Should they issue 5% of their stock over the next 12 months, that would mean $27 billion in funds raised. The actual amount may come in far short of that. Blame the fall of Luckin, the Starbucks competitor that faces delisting from Nasdaq after acknowledging that it fabricated sales. The episode has damaged the reputation of Chinese companies overseas and is having a cautionary impact on investors, banks and potential listing candidates.Unlike Hong Kong, the U.S. market has a disclosure-based system that makes listing — and delisting — easier. Investors subject to corporate fraud can seek redress through class-action lawsuits (Luckin and its IPO arranger, Credit Suisse Group AG, have both been sued). Lacking such legal safeguards, Hong Kong has a gatekeeper for its market, with regulators vetting listing candidates. Companies and their sponsoring banks need to factor in this added scrutiny.As for investors, they may feel they’ve already had the pick of the U.S.-listed Chinese contingent. Alibaba Group Holding Ltd., the first to sell shares in November, JD.com and NetEase are three of the four biggest by market capitalization (the other is Pinduoduo Inc.). They are all well known and with track records as listed companies stretching back years. As the list goes down to encompass smaller and lesser-known enterprises, investor enthusiasm may wane.Not all businesses can match the excitement of the tech trio. Will investors flock to Yum China Holdings Inc., operator of KFC outlets in the country, for example? American investors have taken to Yum, which has the highest percentage of U.S. institutional ownership among the group. This investor base may be unwilling to switch to Hong Kong shares, a factor that may affect demand and post-listing liquidity.Then there’s online travel agency Trip.com Group Ltd., also on the roster of upcoming secondary listings. It has the technology sheen, but will investors be able to overlook the hammering that the world’s tourism companies have taken from the coronavirus pandemic?The reality is that while secondary listings are good business, “there are bigger opportunities in other products for investment banks in the region,” according to Amrit Shahani, London-based research director at analytics company Coalition Development Ltd. First-quarter IPO fees for the top 12 investment banks that Coalition follows in the region, from Goldman Sachs Group Inc. to Citigroup Inc., were around $150 million, Shahani said; they made a combined $1.5 billion from foreign-exchange trading during the period.So things are looking up after all. Just not in the place you might expect. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Beyond Meat surged past a buy point after the fake meat maker inked a new distribution deal in China.
McDonald's (NYSE: MCD) and Yum China (NYSE: YUMC) are two of the largest fast food chains the world. McDonald's operates and franchises over 36,000 restaurants in more than 100 countries worldwide. Yum China, which was spun off from Yum Brands (NYSE: YUM) in 2016, operates over 9,200 locations of Yum's Pizza Hut, KFC, and other restaurants across China.
Beyond is partnering with Chinese food distributor Sinodis, which according to its website, is part of the French dairy maker and distributor Savencia.
Yum China Holdings, Inc. (YUMC) is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front.
Beyond Meat's (NASDAQ: BYND) Beyond Burger is making its debut in mainland China. Yum China (NYSE: YUMC) -- the country's largest restaurant operator and sole licensee of Kentucky Fried Chicken, Pizza Hut, and Taco Bell from former parent company Yum! Brands (NYSE: YUM) -- said it will debut the Beyond Burger in some of its stores starting June 3.
Beyond Burgers will be introduced as a limited-time offering at select KFC, Pizza Hut and Taco Bell locations in mainland China, Yum China said in a statement. KFC will offer the burger as a three-day limited offer at five locations across the cities of Beijing, Chengdu, Hangzhou and Shanghai, Yum China said.
Highflying alternative protein startup (BYND) is apparently expanding in China, and investors seem to be happy with the move. Beyond (ticker: BYND) products might be on KFC menus in China as early as June, according to on a post from KFC on Chinese social media. KFC in China is controlled by (YUMC) (YUMC).