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Yum! Brands' profits drop 30 percent in Q2

Net income at Yum! Brands fell 30 percent in the second quarter ended June 13, the company reported Tuesday, brought down in part by sales declines in its China division that hovered around 4 percent.

The parent company of KFC, Taco Bell and Pizza Hut said its net income for Q2 was $236 million, down from $338 million during the same period last year.

Despite the loss, which stems from food-safety concerns in China after allegations that one of the company’s suppliers was using tainted meat, Yum! Brands CEO Greg Creed said he was confident that sales in China would recover and the company would finish the year strong.

“We expect substantial same-store sales and profit growth in the second half given overall trends in sales and brand perceptions,” Creed said in a statement, noting that the company plans to open 2,100 restaurants internationally this year, including at least 700 locations in China.
 

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