U.S.-listed shares of Yum China fell 3% in extended trading.
The company said over 500 of its restaurants in 17 provinces were closed or offered only takeaway and delivery service at the peak of the Delta variant's outbreak in August, leading to a mid-teens percentage drop in same-store sales.
"While the outbreak has subsided in recent days and restaurant traffic is gradually recovering, our operations continue to be heavily impacted," Yum China said, adding it expects a recovery in same-store sales "to take time".
The company said its profit margins were also being pressured by higher commodity prices, wage inflation and an increase in promotions.
(Reporting by Uday Sampath in Bengaluru; Editing by Krishna Chandra Eluri)