Yum! Brands’ sales in China have improved from negative 19 per cent in May to negative 10 per cent in June.

The improvement is in line with cooling down of negative publicity surrounding poultry supply and Avian flu, says CEO David Novak.

Overall, second quarter earnings per share declined 16 per cent, dragged down by negative performance in China where its same store sales were at negative 20 per cent.

However, it says it remains optimistic and is committed to continue its expansion strategy.

“We expect strong bounce-back year in 2014 as we continue to aggressively invest behind our core strategies and capitalise on the enormous growth opportunities we see around the world,” said Novak.

The company says it remains on track to open at least 700 new outlets in China this year.

Yum! Brands, which also owns Pizza Hut and Taco Bell, has more than 37,000 restaurants worldwide.