LOUISVILLE, KY. – July same-store sales declined an estimated 13 percent for its China division, Louisville-based Yum! Brands Inc. said in an Aug. 12 Securities and Exchange Commission filing. The residual effects of adverse publicity surrounding a December poultry supply incident negatively impacted KFC sales, which declined an estimated 16 percent in China for the month, Yum! added. Pizza Hut Casual Dining experienced a 3 percent increase in sales in the China division for July.
China division same-store sales are expected to recover over the course of the year and be positive in the fourth quarter, Yum! relayed.
June same-store sales for the China division declined an estimated 10 percent, which included an estimated decline of 13 percent at KFC and estimated growth of 6 percent at Pizza Hut. Media reports of avian flu and the residual effect of the December poultry-supply incident impacted KFC sales in China in the second quarter ended June 15, said David Novak, chairman and chief executive officer of Yum!
At the end of the second quarter, Yum! operated 5,982 traditional restaurants in China, which included 4,429 KFC restaurants.