KFC reported Q1 same-store sales in China down 14% from the same period last year, a sign of continuing weakness in the poultry sector following last year’s food scandals and anxiety about avian influenza. Greg Creed, Yum Brands CEO, nevertheless expressed optimism, saying that China sales were recovering from last year’s lows along with “upward momentum in consumer perceptions.”
The 14% sales decline represented a slight improvement over 2014 Q4’s 16% sales decline. Sales also declined at Yum’s Pizza Hut operations in China, but only by 6%, and Yum’s overall China sales were down 12%. Mr Creed said Yum remains “on track to open at least 700 new restaurants in China,” and expects a strong second-half performance from the China division.
(Source – http://www.blackseagrain.net/novosti/kfc-china-sales-still-down-poultry-sector-remains-weak)