04.09.2014 - Company Yum Brands has declared sales drop in China
Yum Brands Corporation announced that it expects that the decline in sales in China in the quarter ending August 31 by 13%. It is worth noting the negative impact of problems with Chinese suppliers that have led to a fall in sales at fast food restaurants KFC and Pizza Hut. Despite the gradual recovery in sales, their dynamics remains negative compared to previous periods.
The reason for the fall in demand for the products of the corporation was the situation with the Chinese supplier of meat Shanghai Husi, which supplied the overdue production to restaurants, and despite the fact that this was not the main supplier, the company got large image and financial losses. We are positive about the growth prospects of the company in connection with the expectation of recovery in sales on the Chinese market and an effective advertising campaign of brands of corporation. The growth of quotations until the end of the year may reach 15-20%.