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