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    Ethan Wang • CLSA Limited

    Ethan Wang's questions to Yum China Holdings Inc (YUMC) leadership

    Ethan Wang's questions to Yum China Holdings Inc (YUMC) leadership • Q2 2025

    Question

    Ethan Wang of CLSA Limited asked about Yum China's competitive stance amidst the aggressive delivery subsidy battle, questioning if the overall competitive environment had worsened in Q2.

    Answer

    CEO Joey Wat stated that the market is always competitive and that Yum China learned from the 2017 subsidy war not to 'buy sales.' She explained the company adopted a balanced approach in Q2, participating selectively in promotions for smaller orders like drinks while protecting the price integrity of core products. This strategy allowed for balanced sales growth, margin protection, and strong operating profit growth.

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    Ethan Wang's questions to Yum China Holdings Inc (YUMC) leadership • Q2 2025

    Question

    Ethan Wang from CLSA Limited asked about Yum China's competitive stance amid the aggressive delivery subsidy battle, why it isn't participating as heavily, and if the competitive environment worsened in Q2.

    Answer

    CEO Joey Wat stated that the key lesson from 2017 is 'we don't buy sales.' She described a disciplined and balanced approach, testing the market dynamics and focusing on protecting price integrity and margins. The company realized the hyper-competition was mainly on smaller drink orders and chose a path that balanced incremental sales with long-term brand health and profitability.

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