Yum China Beats Q2 EPS, Adds David Wei to Board

Yum China Holdings reported second-quarter adjusted earnings per share of $0.58, narrowly surpassing analyst expectations, with revenue of $2.79 billion marking a 4% year-over-year increase but missing some Wall Street estimates. The company opened 336 net new stores in the quarter, bringing its total to nearly 17,000 locations, and achieved record-high operating profit and margin aided by ongoing cost-saving measures and operational efficiencies. Digital sales accounted for 94% of total sales, with delivery comprising 45%. Despite the operational gains, revenue growth remained modest and Yum China’s shares have lagged the S&P 500 so far this year. Parent company Yum Brands reported mixed global results, with U.S. sales lagging but international markets, especially China, supporting growth. The board appointment of Alibaba veteran David Wei is expected to further enhance Yum China's digital innovation and operational efficiency.