Yum announces big fall in profits

Profits have dived at Yum.

Yum Brands has announced a massive drop in its profits in its latest financial results.

The firm – which is behind companies such as fast food chains KFC and Pizza Hut – saw sales in China fall rapidly.

As a result, the quarterly profits revealed by the company show a 68 per cent drop.

A bird flu outbreak was cited by the firm as one of the reasons for the falling profits.

"China division third-quarter sales and profits were impacted by adverse publicity surrounding the December poultry supply incident and subsequent news of Avian flu," it said.

David Novak, chief executive of Yum, explained China remains a key growth market for the company, despite the problems it has experienced in the Asian nation in recent months.

Despite the large fall in its profits, the share price of Yum was up today. Its stocks increased in value by 0.34 per cent over the course of the session.

Learn about the Asian markets and CFD trading at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.