Yum China posts better than expected quarterly results

Yum China, the operator of the KFC and Pizza Hut fast food chains in China, has exceeded analysts’ expectations with a quarterly net income of US $175 million, an increase of more than 20%.

This strong performance was largely a result of significant cost cutting at the group’s 7,600 Chinese restaurants. By contrast, sales dropped from US $1.3 billion to US $1.28 billion. Yum China, which was spun off last year from US fast food giant Yum Brands, is looking to end the two-year market downturn triggered by avian influenza and food safety issues.