Lates News

Yum China Holdings Inc. announced that its operating profit for the second quarter exceeded expectations, thanks to its streamlined cost structure and discount promotions for delivery services that helped attract more customers. Operating profit was $304 million, surpassing analysts' average expectation of $2.884 billion compiled by Bloomberg. Revenue increased by 4% year-on-year to $2.79 billion, in line with analysts' expectations. Adjusted earnings per share were 58 cents, higher than the expected 56 cents. The company, which operates KFC and Pizza Hut in China, reported a 1% increase in same-store sales for the quarter ending on June 30, compared to flat sales in the first quarter. Analysts at Jefferies (including Annie Lin) noted in a report that raw material prices were also at favorable levels this quarter. Analysts at Morgan Stanley, led by Lillian Lou, suggested that Yum China's stock valuation could potentially rise in the future due to its competitive cost structure.