KFC owner Yum Brands hurt by weak performance of UK chains

 
City A.M. Reporter
YUM Brands, the parent company of KFC, yesterday said UK restaurant sales fell in the second quarter.

The US listed company reported a two per cent decline in sales growth for its combined company and franchise stores in the UK between March and June.

However, the refranchising of Pizza Hut UK helped boost total restaurant margins at its Yum Restaurant International division by 0.8 percentage points, it said.

The company also reported an estimated ten per cent drop in June sales at established restaurants in China – a smaller decline than in May when drastically lower sales related to the country’s bird flu outbreak began to moderate.

The drop was less than the 12.2 per cent fall expected on estimates compiled by Consensus Metrix.

The fast-food operator reaps more than half of its overall sales in China, where most of its nearly 5,300 restaurants are KFCs.

In May, Yum’s China sales fell an estimated 19 per cent.

Yum also reported second-quarter earnings of 56 cents per share, excluding items.

While the official end to the fast-food chain’s overall quarter was 15 June, Yum’s China quarter ended on 31 May.

“Second-quarter (earnings per share) declined 16 per cent, which was generally in line with our expectations,” chief executive David Novak said.

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