Yum adjusts 2014 profit outlook as sales in China slow to recover from food scare

MarketsAssociated Press

Yum Brands Inc. says its sales in China are recovering more slowly than expected after a food-safety scare, hampering its overall profits.

Shares of the owner of the Taco Bell, KFC and Pizza Hut restaurant chains fell 5 percent in extended trading Tuesday following the announcement.

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Yum is trying to recover from a TV report in China this summer that showed a former supplier repackaging and selling expired meat.

The restaurant operator says its sales in China are not rebounding as quickly as expected. As a result, it expects earnings per share growth for 2014 in the mid-single digit range. Yum previously forecast a 6 to 10 percent gain.

Yum, which is based in Louisville, Kentucky, anticipates earnings per share growth of at least 10 percent for 2015.