Yum China’s strategic recipe adds too much spice

Haidilao International Holding

10/02/2022 03:53

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Yawen Chen
    HONG KONG, Feb 10 (Reuters Breakingviews) - The KFC and
Pizza Hut owner plans to open as many as 1,200 new stores across
the country despite a 93% fall in quarterly profit. Starbucks is
similarly confident. Both may be underestimating the extent of
consumer weakness. Hotpot chain Haidilao provides a cautionary
tale.
    Full view will be published shortly.
    Follow @ywchen1 https://twitter.com/ywchen1 on Twitter
    
    CONTEXT NEWS
    - Yum China on Feb. 9 reported that its adjusted net income
declined 93% in the fourth quarter, to $11 million, from the
same period a year earlier. Revenue increased 1% to $2.3
billion.
    - The company’s shares fell 3% to HK$347.40.

 (Editing by Jeffrey Goldfarb and Katrina Hamlin)
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