KFC poultry probe leaves bad taste for Yum Brands

City A.M. Reporter
KFC parent Yum Brands yesterday warned it expects 2013 per-share earnings to shrink rather than grow, as it grapples with a food safety scare that ensnared some of its chicken suppliers in its top market.

The company, which gets more than half of its overall sales and operating profit from China, reported a six per cent drop in fourth-quarter sales at established restaurants in China due to “adverse publicity” regarding its poultry supply.

As a result, Yum forecast a “mid-single digit” percentage decline in earnings per share for 2013.