Yum says Q4 China sales to fall

slowing

A very interesting confirmation of conditions on the ground from Yum Brands Inc., which operates the very successful KFC, Taco Bell and Pizza Hut chains with over half of its profits derived from China operations (Reuters):

• same restaurant sales are expected to be down 4% in Q4 (but rise 4% in Yum Restaurants International and rise 3% in US operations)
• Q4 2009 was the last time YUM’s same restaurant sales dropped in China (a drop of 3%)

So the 2012 slowdown is expected to be slightly more severe than the drop in 2009.