While economists and investors fret over China's low consumer confidence and sluggish growth, Yum China CEO Joey Wat says the Chinese consumer is growing more rational — and has been for years.
Weighed down by investors' concern about the broader Chinese economy, shares of Yum China have fallen 27% over the past year, dragging its market value down to $17.51 billion.
Despite Wall Street's worries, Yum China's sales are growing.
"I think the Chinese consumer has become more rational over the last few years," she told CNBC.
But in lower-tier cities, such as Chengdu, Yum China is seeing stronger sales growth because housing is cheaper and consumers have more cash to spend.
Persons:
Joey Wat, Wall, Yum, Wat
Organizations:
Yum, Yum Brands, CNBC
Locations:
China, Yum China, Shanghai, Beijing, Wat, Chengdu, Cities