China's Yum China profit exceeds expectations, takeaway battle boosts sales.

Yum China Holdings, Inc. announced that its second-quarter operating profit exceeded expectations, thanks to its streamlined cost structure and discounts on delivery apps, helping it attract more customers. Operating profit was $304 million, surpassing analysts' average expectations of $2.884 billion compiled by Bloomberg. Revenue increased by 4% year-on-year, reaching $2.79 billion, in line with analyst expectations. Adjusted earnings per share were 58 cents, higher than the expected 56 cents. The company, which operates KFC and Pizza Hut in China, saw a 1% increase in same-store sales in the quarter ending June 30, compared to flat results in the first quarter. Analysts at Jefferies stated in a report that raw material prices were also at favorable levels this quarter. Analysts at Morgan Stanley said that with a competitive streamlined cost structure, Yum China's stock valuation could potentially increase in the future.