KFC’s parent company Yum Brands Inc. says its profit fell in the latest quarter but that sales trends were improving in its critical China division, which has been reeling from a bird flu scare.
The company, which also owns Pizza Hut and Taco Bell, said sales in China were down 10 percent at restaurants open at least a year for June. That’s better than the 19 percent drop in May. In addition to the bird flu scare, Yum is still trying to shake off the lingering effects of a controversy over its chicken supply. That trouble sprang up after a Chinese TV report revealed in December that some suppliers were giving chickens unapproved levels of antibiotics. The fallout was so damaging that Yum dramatically revised down its forecast.