Yum's China sales fall but profit beats expectations

KFC parent Yum! Brands (YUM.NYSE) reported falling sales in China in the first quarter, but its overall profit beat analyst expectations, Reuters reported. The parent of KFC, Pizza Hut and Taco Bell said first-quarter income fell to US$337 million from US$458 million a year earlier. However, earnings were US$0.70 per shares, US$0.10 higher than the median estimate of analysts polled by Reuters. Sales at restaurants open more than one year in China fell 20% year-on-year in the first quarter as an outbreak of avian flu and an earlier scandal regarding the excessive use of hormones among KFC suppliers reduced demand. The company’s shares rebounded US$3.87 in after-hours trading to US$68.02.