LOUISVILLE, KY. – July same-store sales declined an estimated 13% for its China division, Louisville-based Yum! Brands, Inc. said in an Aug. 12 Securities and Exchange Commission filing. The residual effects of adverse publicity surrounding a December poultry supply incident negatively impacted KFC sales, which declined an estimated 16% in China for the month, Yum! said in the S.E.C. filing. Pizza Hut Casual Dining experienced a 3% increase in sales in the China division for July.
China division same-store sales are expected to recover over the course of the year and be positive in the fourth quarter, Yum! said in the S.E.C. filing.
June same-store sales for the China division declined an estimated 10%, which included an estimated decline of 13% at KFC and estimated growth of 6% at Pizza Hut. Media reports of Avian flu and the residual effect of the December poultry supply incident impacted KFC sales in China in the second quarter ended June 15, said David Novak, chairman and chief executive officer of Yum!
At the end of the second quarter, Yum! operated 5,982 traditional restaurants in China, which included 4,429 KFC restaurants.