Yum China gets dragged down by Pizza Hut's slump
Yum China Holdings Inc reported its quarterly sales below estimates, weighed down by sluggish growth at Pizza Hut.
According to CNBC, the firm said same-store rose 3% in the second quarter of 2017, owing to the 4% jump at its KFC outlets. Pizza Hut’s sales were flat.
The operator of KFC, Pizza Hut and Taco Bell in the world's second-largest economy has been looking to boost growth in the market which has slowed since 2012, hit by food safety scares, changing consumer tastes and a wider economic slowdown.
Yum China's president and chief operating officer Joey Wat said, "There is a still a long way to go to turn around Pizza Hut and we are working diligently to get things done."
Yum China has been trying to turn around the unit by simplifying its menu, as well as making a push on mobile payments and delivery. It recently bought a controlling stake in local food-delivery service Daojia.
