=Yum China Holdings (YUMC) reported earnings on Wed 5 July 2017 (a/h)

July 6 (Reuters) - Yum China Holdings Inc, the operator of KFC, Pizza Hut and Taco Bell in the world's second-largest economy, posted quarterly sales slightly below estimates, dragged down by sluggish growth at Pizza Hut amid a turnaround drive.

The firm, which spun off from Yum Brands Inc late last year, said same-store sales rose 3 percent in the second quarter of 2017, driven by a 4 percent jump at fried chicken chain KFC. Pizza Hut's same-store sales were flat.

Yum, China's biggest fast food chain with over 7,685 outlets, has been looking to rev up growth in the market which has slowed since 2012, hit by food safety scares, changing consumer tastes and a wider economic slowdown.

The Pizza Hut division, which has been off-setting stronger growth at KFC since before Yum China's listing, fell short of analyst estimates of a 1.5 percent same-store sales rise, according to research firm Consensus Metrix.

Joey Wat, Yum China's president and chief operating officer, told analysts after the results that the pizza unit had been struggling and there were "quite a few key aspects of the fundamentals of the business that we have to fix".

"There is a still a long way to go to turn around Pizza Hut and we are working diligently to get things done," she said.

KFC's growth was stronger, helping push overall same-store sales above the average analyst estimate of a rise of 2.4 percent.

Shares in the company eased, however, on the concerns over Pizza Hut.

Yum China has been trying to turn around the unit by simplifying its menu, as well as making a push on mobile payments and delivery. It recently bought a controlling stake in local food-delivery service Daojia.

The fast food chain's net income rose to $107 million, or 27 cents per share, in the quarter, from $77 million, or 21 cents per share, a year earlier, which management said was helped by an industry wide tax reform. Margins also widened.

Total revenue fell 0.4 percent to $1.59 billion, slightly missing the average analyst estimate of $1.60 billion, according to Thomson Reuters I/B/E/S.

Yum China (YUMC) : 4-month performance

Yum China (YUMC) began trading on the NYSE on 25 October 2016

• The Louisville, KY-based restaurant company, which operates quick-serve names like KFC, Pizza Hut and Taco Bell, span off its Yum China division.

2 weeks later:

Yum China Holdings, Inc. operates as a restaurant company in China. As of November 1, 2016, the company had 7,300 restaurants in approximately 1,100 cities. It holds exclusive right to operate and sub-license the KFC, Pizza Hut, and Taco Bell brands in China, as well as owns the East Dawning and Little Sheep concepts. The company was incorporated in 2016 and is headquartered in Shanghai, China.

Milestones in China

• 1987 – KFC opens its first China location in Beijing
• 1990 – Pizza Hut opens its first China location in Beijing
• 2001 – Pizza Hut Home Service launches in Shanghai
• 2004 – KFC opens its 1,000th restaurant in China
• 2005 – First East Dawning restaurant opens in Shanghai
• 2012 – Yum! Brands acquires Little Sheep
• 2013 – Pizza Hut Casual Dining opens its 1,000th restaurant in China
• 2015 – KFC opens its 5,000th restaurant in China
• 2016 – Separated from Yum! Brands and became an independent company, listed on the New York Stock Exchange