Yum! Brands Inc (YUM) Updates on Q3 China Comps Outlook

Yum! Brands Inc (NYSE: YUM) is providing the following statement:

Since July 21st, Yum! Brands’ China division has experienced a significant, negative impact to sales at both KFC and Pizza Hut following adverse publicity regarding improper food handling practices by former supplier, Shanghai Husi, a division of OSI. As such, China division same-store sales for the third quarter ended August 31st are now estimated to be approximately -13% versus prior year. While sales are beginning to rebound, they continue to be negative. Our brands have proven resilient over time and we expect this to be the case with this situation as well.

As previously reported, we will provide updated guidance on our expected full-year EPS growth on our third-quarter earnings call. The company plans to vigorously pursue legal action against OSI and Husi to recover damages from the incident.

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