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.

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