Largest foreign fast-food chain operator in China, Yum, breaking its 11 consecutive years of double-digit profit growth, because it disrupted, in response to the risk of the market in its most profitable food scares and avian influenza.
The companies listed in the United States is the world's largest number of outlets catering company, said in a paper on Wednesday, the latest deadly bird flu outbreak, there will be "significant negative impact" in KFC stores in China in April sales.
Analysts said the problem in China - accounting for more than half of its global sales - deep-rooted, sales started to slow down more than the flu stamp recovery will be required before the chicken panic.
"KFC has been a very bad start this year, it has the double whammy of an event, but more and more and more intense competition from the quick service restaurant business," said Frank Gibson, headquartered in Shanghai, an independent business consultant.
"In the long run, it will be difficult for them to grow, they have experienced in the past, but it will be more than certain due to the problems faced by them in the first quarter of this year, more complex and dynamic environment."
Yum trouble began in China in December, when it was accused of containing too many chemicals sales chicken. Cleared of any wrongdoing, and a public apology to its handling of the affair, but did not let it be accused of being "arrogant" state-run Xinhua News Agency.
Sales began to recover, they once again hit a new outbreak of bird flu, has killed nine people so far, stirring concerns about the safety of fresh poultry products.
Consumer Confidence Index
Panchen Jun Long, Beijing food and agribusiness analyst at Rabobank said that consumer confidence will take several months to recover.
"Although the area affected is still in the east of China, the impact of the nationwide consumer confidence," she added, said the impact will be greater than the avian flu.
Local media reports, some restaurants poultry, the commercial capital of Shanghai Airlines and schools have been taken to close the menu in response to the latest health scare.
Reuters in an interview several KFC outlets quieter than usual, and there are indications quoted the World Health Organization to ensure that eating cooked chicken is safe.
Not everyone is convinced.
"I avoid eating chicken, these days, not only KFC, McDonald's, in her 20-year-old woman," Moon Lee told Reuters reporters.
The popular microblogging microblogging full of talk to abandon chicken and other meats.
"Wrote:" Recently, I decided to become a vegetarian, the Chinese equivalent of Twitter 'Joan smile'.
Yum on Wednesday to submit a plan to educate consumers, as it has done in the past, properly cooked chicken is safe to eat.
In March, Yum's China Restaurant has been open at least a year, sales fell more than 13% of the consensus matrix analysts expected an average reduction of 10%.
Results in March, down 16% in KFC, Pizza Hut and increased by 4%. Yum is due to report in the April 23 first quarter earnings.
Yum shares fell in after-hours trading report more than 2% to $ 65.20. Yum's stock traded around $ 72 in late March before the first avian flu deaths report.
 



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