Yum's profit falls in 2Q but China trends improve

[Omaha Steve]

Source: AP-Excite

By CANDICE CHOI

NEW YORK (AP) - KFC's parent company Yum Brands Inc. (YUM) says its profit fell in the latest quarter but that sales trends were improving in its critical China division, which has been reeling from a bird flu scare.

The company, which also owns Pizza Hut and Taco Bell, said sales in China were down 10 percent at restaurants open at least a year for June. That's better than the 19 percent drop in May.

In addition to the bird flu scare, Yum is still trying to shake off the lingering effects of a controversy over its chicken supply. That trouble sprang up after a Chinese TV report revealed in December that some suppliers were giving chickens unapproved levels of antibiotics. The fallout was so damaging that Yum dramatically revised down its forecast for the year, saying it expects its earnings per share for the year to decline. That would snap a years-long streak of double-digit growth.

Although the company stood by that forecast for earnings per share to decline in the mid-single digits on Wednesday, it also noted that sales trends in China are expected to continue improving and turn positive by the fourth quarter.

FULL story at link.



Read more: http://apnews.excite.com/article/20130710/DA7ETE200.html

[davidpdx]

1. I've seen KFC and Pizza Hut in both China and Korea

but Taco Bell only in Korea (which is a fairly recent thing). KFC is popular here in Korea. Pizza Hut is so overpriced I never go there (Costco pizza is much better and cheaper anyway).