Health Scares In China Hurt Yum Brands' Profits

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The owner of KFC and Pizza Hut has reported a near 70 percent drop in profits this quarter. Yum Brands relies on operations in China for three quarters of its revenue. Recent food safety issues and a bird flu outbreak there hit the company especially hard.

STEVE INSKEEP, HOST:

NPR's business news starts with a Yum Brand profit shock.

(SOUNDBITE OF MUSIC)

INSKEEP: The owner of KFC and Pizza Hut has reported a near 70 percent drop in profits this quarter after health scares in China. Yum Brands relies on operations in China for three-quarters of its revenue, so recent food safety issues and a bird flu outbreak hit Yum Brands especially hard.

The U.S.-based company warns it is unlikely that sales will bounce back in the fourth quarter, but the company expects things to improve in 2014.

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