Yum! Brands Inc., which is the owner of the KFC and Pizza Hut dining chains, fell in late
trading on Monday after the firm said profit this year will be less than it had previously expected as a probe into its chicken suppliers hurt sales in China. Money News has reported on a Bloomerg News story on Feb. 4, 2013, Yum Lowers Profit Forecast on China Chicken Probe. In aftermarket trading Yum shares were down 5.6 percent at $60.20.
Yum said Monday in a statement that profit for the firm, excluding certain items, will decline this year, which is down from a previous estimate for growth of 10 percent. Profit last year for Yum was $3.25 a share. Analysts on average had estimated a 2013 profit of $3.57 a share. Yum, which has been planning to open 700 stores in China this year, has been trying to win back Chinese consumers after a food-safety scandal which involved a former chicken supplier.
Bloomberg News has also published a story on Yum's troubles, Yum Falls After Lowering Profit Forecast. After the scandal involving a former chicken supplier, sales at locations open at least 12 months in China fell 6 percent. This fast-food company got about 44 percent of 2011 revenue from its stores throughout China.