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Yum Plunges After Sluggish Sales in China Drag Down Earnings

  • Fallout from supplier scandal hurting sales at KFC, Pizza Hut
  • Company lowers full-year profit forecast after revenue miss
Yum! Brands, owner of the KFC and Taco Bell chains.
Photographer: Daniel Acker/Bloomberg
Updated on

Yum! Brands Inc., owner of the KFC, Pizza Hut and Taco Bell chains, suffered its worst stock decline in almost 13 years after missing third-quarter profit estimates, hurt by a lingering slump in China.

Same-store sales rose 2 percent in China, the company said in a statement Tuesday. Analysts projected an increase of 9.6 percent, according to Consensus Metrix. Earnings amounted to $1 a share in the period, excluding certain items. That fell short of an average estimate of $1.06.