Oct 8 KFC parent Yum Brands Inc on
Tuesday warned that sales at established restaurants in its top
market of China are unlikely to rebound in the fourth quarter,
as it had expected, and its shares tumbled 6.5 percent in
Yum's China same-restaurant sales fell 11 percent in the
third quarter, as the company grappled with the after-effects of
a food safety scare and bird flu outbreak.
Those important sales dropped a steeper-than-expected 11
percent in September. The fourth quarter of the company's China
division has four months.
Based on the disappointing sales results from China, and a
higher than expected full-year tax rate, Yum now expects a
high-single to low-double-digit percentage full-year earnings
per share decline versus the prior year. It previously had
expected a mid-single-digit percentage decline in earnings per
share. Both estimates exclude special items.
Shares in Yum fell $4.67 in extended trading to $67.