Yum’s profit disappoints, hurt by China costs

KFC parent Yum Brands reported quarterly profit that missed Wall Street’s view as inflation in China cut into margins in there, its top market.

Rising food and wage costs as well as expenses related to extending operating hours and building new restaurants in China have cut into margins for the company, Yum spokesman Jonathan Blum told Reuters.

The company has been raising prices in China to offset higher costs but that hasn’t appeared to hurt demand as traffic rose in the quarter.