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Yum China books quarterly net loss on $164M 1-time tax charge

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Yum China books quarterly net loss on $164M 1-time tax charge

Yum China Holdings Inc. booked a net loss in the fourth quarter of 2017 despite posting higher revenues after incurring a one-time charge from the new U.S. tax law.

The company posted a net loss of $90 million, or negative 23 cents per share, in the fourth quarter, compared with a net income of $88 million, or 23 cents per share, in the year-ago period.

This figure included an estimated charge of $164 million, or 42 cents per share, as a result of the tax overhaul. Excluding this charge, adjusted fourth-quarter net income rose 12% to $74 million.

Revenues increased 13% to $2.18 billion in the fourth quarter from $1.94 billion in the year-ago period.

Same-store sales rose 5%, with the company's KFC unit posting a 7% increase.

Yum China President and COO Joey Wat, however, noted that the company continues "to face challenges of the revitalization of Pizza Hut," where same-store sales only grew by 1%.

Operating profit climbed 23% to $71 million in the quarter that ended Dec. 31, 2017, from $58 million in the year-ago quarter.

For full year 2017, net income fell 20% to $403 million from $502 million in 2016.