“(Reuters) – KFC parent Yum Brands Inc on Tuesday reported that quarterly profit fell less than Wall Street expected, despite a sharp drop in sales in its top China market, sending the company’s shares up nearly 6 percent.
The Louisville, Kentucky-based fast-food company also repeated its earnings forecast for the year, based on the better-than-expected first-quarter results.
Sales at established restaurants in China fell an expected 20 percent during the first quarter and Yum warned that fears surrounding a bird flu outbreak there were continuing to depress sales already struggling to recover from a previous food safety scare.
The fast-food operator reaps more than half of its overall sales in China, where most of its nearly 5,300 restaurants are KFCs.
Still, Yum expects sales to recover in China, where it is on track to add 700 new restaurants this year…..”
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