Originally published at www.seclive.com
Yum! Brands, Inc. (NYSE:YUM) reported its restaurant sales in China dropped 13% due to an increased fear of bird flu and food safety concerns. Yum, the owner of the KFC brand, operates more than 6,000 restaurants in China, where it makes more than half of its operating profit. On July 20th the World Health Organization announced it had been told about 134 cases of the H7N9 virus, more commonly known as bird flu, which had claimed 43 lives. With chicken quality concerns, Yum is not the only company to face steeper sales declines as McDonald's Corporation (NYSE:MCD) also reported operating profit declines. China economic expansion, once in double-digit range, has now cooled to a more modest 7.5% growth amid housing and credit market concerns.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.