Yum! Brands lowers profit forecast

Yum! Brands lowers profit forecast

Yum! Brands, which owns fast food chains like Pizza Hut, Kentucky Fried Chicken and Taco Bell, has lowered its profit forecast after a huge food scandal in China.

Profit forecast halved

 

The American company had expected a 20 % profit per share, but has now lowered that forecast quite drastically, to 6 - 10 %. The like-for-like turnover in China has dropped 14 % in the third quarter. Cause was a supplier-based food scandal. A 13 % like-for-like turnover drop (from its 6,400 Chinese stores) is now to be expected for the full year.

 

It may take a while before Yum! Brands recovers from this blow, but CEO David Novak has full faith in the future: "I'm convinced that Yum! Brands can achieve strong and stable growth in the next few years, despite this incident at our Chinese supplier", he told CNBC.

 

Yum! Brands has managed a 404 million dollar (320 million euro) third quarter net profit, compared to 152 million dollar (120 million euro) the year before. Its turnover also grew 3 % to 3.3 billion dollar (2.6 billion euro).

Questions or comments? Please feel free to contact the editors


Fewer customers and lower turnover for H&M

15/12/2017

Swedish H&M Group suffered a 4 % turnover drop in the fourth quarter because its stores welcomed fewer customers.

Hunkemöller is European Retailer of the Year

14/12/2017

Dutch lingerie chain Hunkemöller has been elected “Retail of the Year Europe 2017-2018”. Q&A, which also elects a “Retailer of the Year” in Belgium and the Netherlands, organized the election for the third time.

Amancio Ortega leaves Inditex with strong quarterly growth

14/12/2017

Over the first three quarters of fiscal year 2017, Inditex’ turnover grew 10 % to 17.96 billion euro. The Spanish fashion company published the results as its boss, Amancio Ortega, stepped down.

Glimmer of hope for fashion retail in 2018

08/12/2017

McKinsey wrote in its The State of Fashion 2018 study that the industry has survived the harshest, even though nothing will ever be as it used to be. Growth will come from southern and eastern regions; fast-fashion will become even faster and the large companies will become even larger.

Gucci investigated for tax avoidance

04/12/2017

The Italian police raided Gucci’s offices in Milan and Florence, looking for evidence of tax avoidance. The fashion label admitted there was an investigation and that it is fully cooperating.

Quiksilver wants to acquire Billabong

01/12/2017

Surfing brand Quiksilver tabled a 150 million dollar (125 million euro) bid for its competitor, Billabong. It may be the latter’s only way out, with compounding losses in the past few years.

Back to top