Yum China Profit Beats Expectations as Price Cuts Draw Diners

(Bloomberg) — Yum China Holdings Inc. reported higher than expected profit in the second quarter, despite stepping up promotions across its KFC and Pizza Hut chains to lure thriftier diners and further penetrate less wealthy parts of the mainland.

Operating profit grew 4% year-on-year to $266 million and adjusted earnings were 55 cents per share in the second quarter, the company said in a statement. Revenue of $2.68 billion was up 0.9%, just short of analysts’ prediction of $2.78 billion.