Yum China's sales keep growing, but a fierce food delivery price war may be weighing on investor sentiment

Yum China, which operates almost 17,000 KFC and Pizza Hut outlets across the world’s second-largest economy, posted rising revenues and profits for the most recent quarter, growing even as Chinese consumption continues to be sluggish and as Trump’s trade war continues to shake up global economies.

Yet the company’s Hong Kong-traded shares plunged by 6% on Wednesday, despite the solid financial results. Shares later pared back losses, but are still down by 3% since the earnings release.

Analysts point to one possible reason for the mismatch between Yum China’s strong results and investor unease. China’s Big Tech companies are locked in a brutal price war in the country’s fiercely competitive food delivery space, promising billions of dollars worth of subsidies to merchants and consumers t