The chain’s third-quarter profit plunged to $152m, down by 68%, as against $471m in the corresponding quarter a year ago while revenues dropped 3% to $3.47bn from $3.57bn last year.
Yum! Brands, the operator of Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwide, said that profits dropped due to tough trading period in China, which continues to be affected by the December poultry supply incident. China accounts for a major share of total revenue in Yum Brands portfolio.
Yum! third-quarter same-store sales, or sales from stores open for at least a year, fell by 11% in China, including a 14% drop at KFC and 5% growth at Pizza Hut.
Sales from China were also affected due to a slowing economy.
Global system sales grew 1%, including 5% growth at Yum! Restaurants International (YRI) while system sales declined 2% in China and were flat in the US.
Yum! Brands chief executive David Novak said Pizza Hut business in China continues to deliver strong results, and the rest of Yum! is performing generally as expected for the full year
"As evidence of this, we expect to open at least 700 new units in China this year, as we capitalize on the world’s fastest growing consuming class. Outside of China, we expect record new-unit openings for Yum! Restaurants International and in India this year."
During the third quarter, the company opened 364 new outlets. With the company’s recent announcement, Yum! plans to open at least 1,850 new restaurants outside the US.