KFC owner Yum Brands shares tumble

Jessica Morris
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Yum Brands has been hit by China's slowing economy (Source: Getty)

Shares in Yum Brands tumbled today after the KFC owner served up a disappointing batch of results.

The US-listed company cut its earnings outlook for the year amid headwinds from China's economy, sending its shares down 18 per cent to $68.55 per share in after-hours trading.

Yum said it now expects full-year earnings per share growth well below its target of at least 10 per cent. Analysts had pencilled in average earnings per share growth of 14 per cent according to a Reuters' poll.

Read more: Market economy status for China is a disaster

Adding to the gloom, sales at established restaurants in its top market of China rose far less than expected for the third quarter.

Sales at China KFC and Pizza Hut restaurants open at least one year rose 2 percent in the latest quarter, less than the 9.6 percent jump analysts had expected, according to research firm Consensus Metrix.

At the same time this ended four straight quarters of declines, following a meat scandal in July 2014.

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