Yum China Sales Strengthen, Rising Costs Loom

According to Fox Business, “Yum Brands Inc saidsales growth sped up at its KFC and Pizza Hut restaurants inChina, but warned that higher labor costs there and risingcommodities prices would hit margins.”

“While the China results topped expectations, results fromother parts of the world were soft. U.S. same-restaurant saleswere up 1 percent overall. ‘The big laggard continues to be KFC U.S.,’ Janney CapitalMarkets analyst Mark Kalinowski said. He noted that KFC U.S.accounts for around 3 percent of Yum’s global profit.”