Yum China beats Q2 expectations but sees 'moderate' growth ahead

Yum China Holdings Inc. late Tuesday reported second-quarter earnings and sales that beat expectations, but shares were flat in the extended session as the company said it expected sales growth to "moderate" going forward. Yum China, which operates thousands of KFC and Pizza Hut restaurants in China, said it earned $178 million, or 46 cents a share, in the quarter, compared with $143 million, or 36 cents a share, in the year-ago period. Sales rose 3% to $2.12 billion. Analysts polled by FactSet had expected earnings of 38 cents a share on sales of $2.16 billion. Same-store sales rose 4%, in line with expectations. "Looking forward, we expect overall sales growth to moderate as KFC begins to lap several key sales drivers, including successful value campaigns that we initiated in the second half of 2018," Chief Executive Joey Wat said. "However, we remain confident that our strong foundation and commitment to innovation throughout our business will power continued growth for Yum China." Yum China shares ended the regular trading day down 3%.

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