Yum! Brands Inc. downgraded its outlook for the year on Tuesday, saying negative trends in China will continue into the fourth quarter. For its Sept. 7-ended third quarter, the company recorded a 68-percent decline in net income. Same-store sales fell 11 percent in China, where the company’s KFC brand has not yet recovered after concerns were raised about poultry quality in the region earlier this year. In the U.S., same-store sales were flat for the third quarter. For the year, the company now expects a high-single to low-double-digit decline in earnings per share, excluding special items, compared to earlier projections of a mid-single-digit decline. Louisville, Ky.-based Yum Brands operates or franchises 37,446 restaurants under the KFC, Taco Bell, Pizza Hut and other brand names worldwide, including 16,042 in the U.S.
This article has been revised to reflect the following correction:
Correction: October 9, 2013 This story has been updated to state that Taco Bell's same-store sales increased by 2%.