Yum Brands Suffered From Sales Decline on Its China Sales

Last Thursday, Yum Brands Inc. stated that the company experienced fall down by 15 percent on its sales at established restaurants in the country of China in the month of November 2014. Despite the sales decline last month, the company said that they are slowly recovering from that level for this month.

David Novak, who is the company’s Chief Executive Officer, said during Yum Brands Inc.’s investor and analyst conference, which was held in New York City, that their company’s number one priority is their turnaround in China.

Yum is the owner of both Pizza Hut and KFC chains. It is known to be China’s largest Western restaurant operator, considering it has more than 6,400 of outlets. A big part of the company’s sales and profit comes from this fast-growing market. That is why when their sales in China fell down, it affected the company.

Just last Tuesday, Yum cut their forecast for their full-year profit this year. This is already the second time that the company has lowered its forecast. The things that push them to cut their profit forecast for the second time are the supplier scandal that exploded this summer and the slower-than-anticipated recovery from China’s sales fall down.