Latest Chinese supply chain crisis hits Yum! Brands' sales 'significantly'
July 31, 2014
Yum! Brands said the latest supply chain crisis in China has caused "significant, negative" damage to sales at its KFC and Pizza Hut brands in that market. Reuters reported that if this impact is sustained, it will have a "material" effect on the company's full-year results.
The news has already hit Yum! Brands' shares pretty hard, which are down more than 6 percent. It also comes just as the company was beginning to find traction in its extensive recovery efforts in the China market following a late 2012 chicken supply chain crisis that led to double-digit sales decreases throughout 2013.
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