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Health Scares In China Hurt Yum Brands' Profits

NPR
Wednesday, October 9, 2013

Copyright 2018 NPR. To see more, visit http://www.npr.org/.

The owner of KFC and Pizza Hut has reported a near 70 percent drop in profits this quarter. Yum Brands relies on operations in China for three quarters of its revenue. Recent food safety issues and a bird flu outbreak there hit the company especially hard.

Transcript

STEVE INSKEEP, HOST:

NPR's business news starts with a Yum Brand profit shock.

(SOUNDBITE OF MUSIC)

INSKEEP: The owner of KFC and Pizza Hut has reported a near 70 percent drop in profits this quarter after health scares in China. Yum Brands relies on operations in China for three-quarters of its revenue, so recent food safety issues and a bird flu outbreak hit Yum Brands especially hard.

The U.S.-based company warns it is unlikely that sales will bounce back in the fourth quarter, but the company expects things to improve in 2014. Transcript provided by NPR, Copyright NPR.

View this story on npr.org

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