Yum! Brands Revises 4Q China Sales Estimate
Yum! Brands has updated its estimate for a decline of sales in China in the company's 4Q 2012, it said in an SEC filing. The operator of popular fast-food restaurants such as KFC and Pizza Hut now believes it will suffer a 6% decline in same-store sales in that nation during the quarter. It had previously anticipated a 4% drop in that figure.
In the filing, the firm attributed this to "adverse publicity associated with a government review of China poultry supply." This refers to the controversy that arose last month following allegations that the company's suppliers injected growth hormones and antiviral agents into its goods in ways that breached food safety regulations.
For full-year 2012, Yum! Brands expects to post earnings of around $3.24 per share. Its stock was down by more than 5% in after-hours trading the day the filing was made.
The article Yum! Brands Revises 4Q China Sales Estimate originally appeared on Fool.com.Eric Volkman has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.