(Reuters) – Yum Brands (YUM), owner of KFC and Pizza Hut chains, on Tuesday said business in its biggest market China is recovering from a meat scare at one of its minor suppliers and that the division would finish the year strong.
Same-restaurant sales in China, where Yum is the biggest Western brand with nearly 6,850 establishments, declined 12% for the latest quarter on continued fallout from allegations that a former supplier used expired meat. The quarter’s results included declines of 14%at KFC and 6%at Pizza Hut Casual Dining.
Yum China’s same-restaurant sales fell 16% for the fourth quarter and were down 14%in the third quarter. They were up 15% in the second quarter, which ended roughly a month before news of the supplier scandal broke on July 20.
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(This story was updated with additional information)