China drags down Yum! earnings
KFC parent Yum! Brands has reported a 32 per cent slide in net income in 2013.
The American fast food restaurant operator said 2013 net income was down to $1.09 billion, as KFC China’s earnings were eroded by 15 per cent, dragged down by Avian flu fear and a poultry supply scandal.
But, the company is optimistic it will bounce back in 2014 as it reassures customers of the safety of its food.
“In China, we have an aggressive plan to reignite sales at KFC and we expect continued strong performance at Pizza Hut Casual Dining,” said CEO David Novak.
It expects earnings per share in 2014 to grow 20 per cent. It plans to open at least 1850 new restaurants outside the US, 700 of which will be in China and 150 in India.
It ended 2013 with more than 40,000 restaurants worldwide, around 16,000 of which are in the US.