China gives Yum Brands (Pizza Hut / KFC) uppercut

China gives Yum Brands (Pizza Hut / KFC) uppercut

The Yum Brands group's turnover has dropped for the fourth straight quarter. The Pizza Hut and KFC owner is still feeling the backlash of the Chinese food scandal from last year.

North American problems as well

Turnover dropped 3 % to 3.11 billion dollars (2.8 billion euro), well below the 3.19 billion dollars (2.89 billion euro) expected by analysts. Profit plummeted 30 % to 235 million dollars (215 million euro), while its Chinese like-for-like turnover dropped 10 %, also worse than the - 8.4 % expected by analysts.

 

Shareholders have already uttered the idea to cut the Chinese activities loose from its other activities, but Yum Brands has another plan in mind: to rebuild its position in China.

 

Yum Brands is also struggling in North America: consumers are moving towards the healthier food options at Chipotle and Shake Shake. In an attempt to win back customers, Yum Brands announced it will remove colour and taste additives from its Pizza Hut and Taco Bell meals.

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