Nov 29 Yum Brands Inc said on Thursday
it expects to post a decline in fourth-quarter sales at
established restaurants in China, where a cooling economy is
making it difficult to exceed the strong gain it reported a year
Yum said fourth quarter same-restaurant sales are expected
to be down 4 percent in China. Those sales are expected to rise
4 percent at Yum Restaurants International and 3 percent in the
The shares of the parent of the KFC, Taco Bell and Pizza Hut
chains, which gets more than half of its profits from China,
tumbled 7.6 percent to $68.84 in extended trading.
"For the fourth quarter, stronger-than-expected operating
performance from Yum Restaurants International and our U.S.
division is offsetting softer sales in China," Yum Chairman and
Chief Executive David Novak said in a statement.
Yum expects to open at least 800 new restaurants in China in
this year and Novak said the company's prospects there remain
"Next year will be another strong year for our China
division. We are extremely confident Yum China remains the best
growth story in the restaurant industry," Novak said.
Yum also forecast 2013 earnings per share growth of at least
10 percent. It repeated its call for 2012 earnings per share
growth of at least 13 percent, or $3.24 per share, excluding