Yum Brands YUM dropped $2.53 to $68.95 (3.5%) in after hours trade Wednesday after the quick food sequence pronounced third-quarter income would be impacted by a sales slack in China, it’s greatest market.
Yum, that operates Taco Bell, Pizza Hut and KFC, said it has gifted “significant, disastrous impact” given broadside flush in Jul over crude food doing practices by former beef retailer Shanghai Husi, according to corporate filings. Shanghai Husi allegedly sole beef over the death date.
The association expects same store sales in China to tumble 13% over the year ago quarter. Yum operates 6,200 outlets in China, often KFC and Pizza Hut stores, that generated $6.9 billion in 2013 income and $777 million in handling profits.
Yum Brands had identical woes in the third entertain of 2013, when increase sank 68% and income slipped 4% as it struggled to redeem from duck supply issues and a bird influenza scare. Shares had bounced behind from a 52-week low of $64.08 final September, taking flight to $83.58 by Jul 14. But given then, Yum’s off 17.5%.
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