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Yum Chokes On China

  (Image source: snaptohealth)

Yum! Brands, Inc. (NYSE:YUM) reported disappointing earnings yesterday. The company missed estimates by 8 cents per share. Third quarter profits fell 68 percent. Operations in China is hammering the company overall. Same-store sales in China were down 11 percent. Anxiety about the avian flu and the Chinese government’s stepped up investigation on chicken suppliers is hurting the KFC brand in the country. KFC sales alone in the country have down 13 percent. Furthermore, executives don’t believe same-store sales will improve in the fourth quarter in the region. Yum is down over 7 percent in current trading. Yum!’s results doesn’t bold well for the restaurant industry.