Fast food giant Yum! Brands said on Tuesday that China division’s sales and profits in the first quarter of 2013 were significantly impacted by adverse publicity from the poultry supply situation that occurred in late December 2012.
Same-store sales declined 20 percent in the country for the first quarter ended on 23 March 2013. Operating profit dropped 41 percent from USD256 million to USD154m.
The recent news of Avian flu also hit same-store sales in China. However, CEO David Novak was confident that the company will have a full sales recovery. "We will stay the course with our plans to develop at least 700 new units in China this year to lay the foundation for future growth," said Novak.