Yum China Holdings, Inc. (NYSE:YUMC) Q2 2024 Earnings Conference Call August 6, 2024 8:00 PM ET

Company Participants

Florence Lip - Senior Director, IR
Joey Wat - CEO & Executive Director
Ka Yeung - CFO

Conference Call Participants

Michelle Cheng - Goldman Sachs
Lillian Lou - Morgan Stanley
Chen Luo - Bank of America Merrill Lynch
Anne Ling - Jefferies
Brian Bittner - Oppenheimer
Sijie Lin - CICC
Xiaopo Wei - Citigroup

Operator

Thank you for standing by. Welcome to the Yum China Second Quarter 2024 Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to Ms. Florence Lip. Please go ahead.

Florence Lip

Thank you, operator. Hello, everyone. Thank you for joining Yum China's Second Quarter 2024 Earnings Conference Call. On today's call are our CEO, Ms. Joey Wat; and our CFO, Mr. Andy Yeung.

I'd like to remind everyone that our earnings call and investor materials contain forward-looking statements, which are subject to future events and uncertainties. Actual results may differ materially from these forward-looking statements. All forward-looking statements should be considered in conjunction with the cautionary statement in our earnings release and the risk factors included in our filings with the SEC.

This call also includes certain non-GAAP financial measures. You should carefully consider the comparable GAAP measures. Reconciliation of non-GAAP and GAAP measures is included in our earnings release. You can find the webcast of this call and a PowerPoint presentation on our IR website. Please note that during today's call, all year-over-year growth results exclude the impact of foreign currency, unless otherwise noted.

Now I would like to turn the call over to Joey Wat, CEO of Yum China. Joey?

Joey Wat

Hello, everyone, and thank you for joining us. Today, Yum China reported record levels of revenue, operating profit and EPS for the second quarter. System sales grew 4% on top of 32% growth in the same period last year. Core operating profit grew 12% to USD 275 million. EPS increased 19%.

I would like to thank our colleagues for their hard work and innovative spirit. We are navigating a complex and dynamic environment. Yes, but we see the many challenges more as opportunities.

With our industry-leading capabilities and our scale, we are turning these situations to our competitive advantage. We have taken aggressive steps to drive revenue and profitability.

I would like to highlight 3 of them. First, we took a fresh look at every key process and cost elements in our businesses. We make counters innovations to improve our operational efficiency, enhance profitability and increase resiliency. We are already seeing results. We are achieving major cost savings and reinvesting them into food and value.