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Even Wills and Kate are getting into the KFC (OK, it's not really them) Matt Crossick/Matt Crossick/EMPICS Entertainment
finger lickin'
Europeans are buying lots more KFC, but we're not nearly the biggest customers yet
The company behind the fast-food chain has still taken a profit haircut thanks to the Chinese food scandal.
9.52am, 8 Oct 2014
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EUROPEANS ARE BUYING more KFC, but the company behind the fast-food chain has still been forced to cut its financial forecasts after the Chinese food scare put a big dent in its global sales.
Yum Brands, which also owns the Pizza Hut and Taco Bell brands, slashed its earnings forecasts to between 6 and 10% growth for the year after previously pencilling in a figure of over 20%.
It follows a major food-safety scare in China earlier this year when a big beef and chicken supplier was reported to have repackaged expired meats and sold them to McDonald’s, KFC and Pizza Hut outlets.
Even though Yum said it wasn’t one of the primary customers of the Shanghai-based supplier, its sales took a big hit because of the negative media coverage.
In its latest financial reports, Yum revealed its established Chinese stores had taken a 14% haircut in their sales over the third quarter and its operating profit there dropped 38% during the period, despite opening 125 new stores across the country.
Eugene Hoshiko / AP/Press Association Images
Eugene Hoshiko / AP/Press Association Images / AP/Press Association Images
Europeans are buying lots more KFC
But Yum reported booming sales in its European KFC operations from developed markets with receipts up 11% over the year so far in the UK and 7% on the continent in countries like France and Germany.
Among all regions, the “emerging market” of Russia had the biggest increase in fried-chicken sales – up 40% in the year to date and a massive 36% for the quarter.
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Pizza Hut sales were also up 3% in Europe’s developed markets but were flat in the UK for the year to date.
The two regions make up only 14% of Yum’s fried-chicken business and 11% of its pizza trade, compared to the US which is worth 55% of Pizza Hut turnover and 25% for KFC.
The company did not release specific data for its operations in Ireland, where it has 99 franchisees running KFC and Pizza Hut stores after launching the pizza chain here in 2008.
Yum turned a profit of $169 million (€134 million) through its KFC division for the quarter, up 16% on the same time last year, and $68 million (€54 million) from the Pizza Hut chain, down 2%.
Confident despite “supplier incident”
Company chairman and chief executive David Novak said he was confident in Yum’s ability to deliver growth despite the “recent supplier incident” in China.
“China sales are on the path to recovery and we expect to develop at least 700 new restaurants in China this year, which we’re confident will ultimately deliver high returns as we further capitalize on the world’s fastest growing consuming class,” he said.
“Outside of China, we expect continued solid sales and profit growth at our KFC division, led by strong international performance and improving U.S. results.”
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‘A DRUG THAT has been found to significantly reduce the lifespan of mice may point to the possibility of its potential use in humans, ‘ – think I’ll stick with the cans to do that, thanks
@Maire Hicks: Time was the average lifespan was only thirty years. I’m more than twice that and in good health, I’m looking forward to as much life as I can get.
Where’s the fun in being dead?
@Maire Hicks: I dunno, maybe people who enjoy life and want to have as much time with their family and friends as possible? Maybe all of the people who don’t get to reach old age would have liked the option? It’s ok Maire, even if this becomes a viable and safe option no one’s going to force you to live longer if you’re miserable.
@Maire Hicks: When it comes to reducing cancer, we will improve on nature. No one deserves that. We’re all getting older anyway. Why shouldn’t people have healthier, more independent lives?
@Maire Hicks: wearing clothes
Using a toilet,brushing your teeth,showering,,having a operation to save your life.None of these things are ‘natural’ you are ‘messing’ with nature every day of your comfortable modern life.Nature would kill you for getting an infection,nature wants you to breed when your 12 years old because in nature you’d be dead by 35 years old before we started ‘messing with it’
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