YumChina (NYSE:YUMC)

[Snoopy]

From the Forager funds International shares fund January report.

"Unsurprisingly the quarantine measures are hurting our investment in Yum China (NYSE:YUMC), the owner of KFC and Pizza Hut stores in China. More than 30% of their restaurants have been temporarily closed. For those open, sales per store have halved versus the prior comparable period. It’s a painful and substantial test of the business and management, at the very least temporarily."

It was good to hear YUMC CEO Joey Wat, on the RNZ airwaves this morning. She said that every YUMC customer was given a ticket with the name and temperature of the person who served them on it. When the order was delivered, a similar ticket was added for the delivery person. This provides confidence and traceability for their customers.

More information on what YUMC are doing with their COVID-19 risk control program can be found here.

http://ir.yumchina.com/news-releases...ht-coronavirus

"Since January 30th, the KFC and Pizza Hut brands in China have rolled out contactless delivery services nationwide and contactless in store pick-up services at selected locations in China. These services help reduce the risk of person-to-person transmission of the coronavirus and have been well received by customers."

An unlikely growth opportunity has opened up in the area of corporate meals

"helping employers to offer healthy and reliable dining options to their staff."

YUMC have been helping health workers too.

"Since January 27, the KFC and Pizza Hut brands have been providing up to 1,500 free meals every day to medical workers in hospitals across Wuhan. The initiative has since been expanded, resulting in the delivery of over 70,000 free meals to nearly 500 hospitals and community health centres across mainland China."

Then there is a picture of a full body suited medical worker carrying in three buckets of healthy KFC into the hospital - classic!

SNOOPY