Yum Q3 profits fall 68% as China sales drop

Fast food retailer Yum! Brands (YUM.NYSE) on Wednesday announced a 68% drop in third-quarter profits on falling sales in China, Bloomberg reported. Same-store sales in the Asian nation fell 11% year-on-year. Yum, which gets about three-quarters of its revenue from outside the US, citied increased domestic competition from chains such as Dicos and Hai Lai Shi, a tax increase and a backlash from consumers after an outbreak of avian flu. Yum has cut its forecast for China stating that fourth-quarter same-store sales will unlikely be positive. The company operates more than 6,000 KFC, Pizza Hut and other eateries in the country.