Yum’s sales mixed in China, climb in US

Yum Brands yesterday reported mixed quarterly results for its troubled China unit, which the company is spinning off.
The Louisville, Kentucky company said sales rose 6 percent at established KFC restaurants in China, while its Pizza Hut sales fell 8 percent. Jonathan Blum, Yum’s chief public affairs officer, attributed the drop at the pizza chain to the country’s economic slowdown.
“The marketplace has affected casual dining sales in general, which has had an impact on Pizza Hut,” Blum said. As such, he said the company planned to sharpen its focus on value to boost results.
Yum has been trying to fix its business in China ever since sales there were slammed by food scares. Executives have also conceded they made marketing missteps. In October, Yum announced plans to spin off the business into a separate, publicly traded company.
Back at home, Yum said KFC and Pizza Hut both showed improved sales figures, with the two chains undergoing a turnaround push to reverse slumping sales. KFC’s sales were up 3 percent at established locations, and Pizza Hut’s were up 2 percent.
Yum’s strongest chain in the U.S., Taco Bell, delivered a 4 percent sales increase at established locations. AP