Yum! Brands Chief Financial Officer Rick Carucci said that Chinese consumers are still spending cautiously at Yum! subsidiaries KFC and Pizza Hut, Reuters reported. "Their savings rates continue to rise, so they’re being conservative with their spending right now," Carucci said in a conference call. Nevertheless, the company remains "bullish" on the long-term prospects in the Chinese market, he said. Yum! plans to add at least 475 new restaurants in China this year. Yum! CEO David Novak said Yum! is particularly interested in capturing the Chinese breakfast market. Fast food breakfast is still a novelty in China, but the company hopes breakfast revenues will ultimately account for 30% of sales. Yum! also plans to increase its focus on developing markets in central and western China. Last Tuesday the company announced its second-quarter profits had risen 35%, beating Wall Street’s expectations. However, the company has not raised its full-year earnings forecast.
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