Yum says China same-store sales rise 1pc in December

PUBLISHED : Wednesday, 13 January, 2016, 10:20pm
UPDATED : Wednesday, 13 January, 2016, 10:20pm

Yum Brands, which is spinning off its China business, said December same-store sales increased 1 per cent in the country, helped by a 5 per cent rise at KFC.

The company said same-store sales fell 11 per cent at Pizza Hut in China.

Shares of the company, which also owns Taco Bell, rose 3.2 per cent in extended trading on Tuesday.

Yum also estimated a 2 per cent rise in same-store sales for the fourth quarter ended December, including an estimated 6 per cent growth at KFC and an 8 per cent decline at Pizza Hut.

The company warned investors in October that its results from China would continue to be volatile and said the division’s same-restaurant sales could be flat or rise up to 4 per cent in the fourth quarter.

Yum had said it would report China division monthly sales until December 2015, and expects to spin off the business by the end of 2016.

The company’s sales in China, its dominant business, have taken a hit ever since a television news story in 2014 alleged that one of its suppliers was using meat that was past its expiration date.

Yum is scheduled to report fourth-quarter results on February 3.

business-article-page