Yum China Reports Strong Q2 Results with Earnings and Revenue Beating Expectations
Yum China reported second-quarter results that exceeded Wall Street expectations, driving a premarket share increase of 2.14%. The company's adjusted earnings per share reached $0.70 compared to the expected $0.67, while revenue rose 13% year-over-year to $3.14 billion, surpassing forecasts. Operating profit increased by 14% from last year to $348 million with an operating margin of 11.1%, marking nine consecutive quarters of improvement in profitability. Same-store sales growth continued for KFC and returned positive results for Pizza Hut. Yum China also opened a record number of new restaurants during the quarter, setting plans to open over 1,900 net new stores by year-end. The company reaffirmed its commitment to returning $1.5 billion to shareholders in 2026 and expects to complete the acquisition of Pizza Hut's brand in Mainland China by August.
Tickers: $YUMC
Topics: operating profit improvement restaurant industry same-store sales growth