Chinese catering company’s profit fell by 76% for past months


October 28, Fineko/ The operator of American fast food restaurant chains in China, Yum China, reduced its net profit by 76% to $104 million in the first 9 months of 2021.

According to the company, the drop in profits occurred against the background of the deterioration of the epidemic situation in a number of cities in China.

"The net profit decreased by 76% to $104 million from $439 million in the same period of 2020," Yum China says.

As the company explained, the weak results of the 3rd quarter were affected by outbreaks of the delta strain of coronavirus, recorded since the end of July in a range of regions of the country. In particular, the deterioration of business was caused by lockdowns introduced in a number of large cities, such as Nanjing and Yangzhou (Eastern China). There was also decline in activity in the cities of Zhengzhou and Wuhan, the administrative centers of the central provinces of Henan and Hubei. In September, the deterioration of the epidemic situation was registered in the provinces of Fujian (southeast) and Heilongjiang (northeast).