Yum! Brands said same stores in China fell five per cent in October, dragged down by its KFC business.

KFC’s sales declined seven per cent last month as it struggles with competition. The adverse publicity surrounding the December poultry supply incident and bird flu scare also continuously dent the fast food chain’s sales.

Yum!, which also owns Taco Bell and Pizza Hut, expects same store sales in China to remain negative in the fourth quarter.

KFC is introducing new products such as beef burger and promoting the quality of its food to attract customers.

The Kentucky-based company has more than 6000 restaurants in China. Despite the challenging environment, Yum! is still on track to open at least 700 outlets in the nation.