Feb 24 Yum Brands Inc, aiming to reverse
a steep drop in business at its KFC restaurants in China after a
chicken safety scare, will outline in Beijing on Monday details
of its strengthened food quality assurance program.
The effort is critical for Yum, which gets more than half of
its overall sales from China, the world's fastest-growing major
Diners began avoiding Yum's nearly 5,300 - mostly KFC -
restaurants in December after news reports and government
investigations in China focused on chemical residue found in a
small portion of its chicken supply.
The company was not fined by China food safety authorities.
It will also lay out plans to bring back diners, the company
Earlier this month, Yum reported a 6 percent decline in
fourth-quarter 2012 sales at established restaurants in China.
It also forecast a surprisingly steep 25 percent drop in
China same-restaurant sales for the first quarter, which
includes only the months of January and February.
Yum warned that it expected a "mid-single digit" percentage
decline in earnings per share for 2013, versus its previous call
for growth of at least 10 percent.
Based on the trajectory of prior food safety scares in
China, Yum expects KFC same-store sales in China to rise by the