Courtesy of Benzinga.
Yum! Brands, Inc. (NYSE: YUM) is down more than one percent Thursday after the company said same-store sales at its China operations will fall 13 percent for the quarter ended August 31.
Yum's China division produces about half of Yum's total revenue. The unit includes 6,200 restaurants, mostly KFCs and Pizza Huts, which posted 2013 revenue of $6.9 billion and operating profit of $777 million.
Yum's total revenue in the same period was $13.08 billion.
The company said China sales were hurt by news that emerged June 21 about improper food handling by former suppliers in China.
"While sales are beginning to rebound, they continue to be negative," the company said.
Yum is expected to post fiscal third-quarter earnings in mid-October of $1 a share on revenue of $3.2 billion.
Yum traded recently at $70.53, down 1.3 percent.
