Exclusive reports from China brings into latest amusement felt by KFC owner, Yum Brands when he claims to have seen a profit boost due to chicken bucket-deal during Chinese New Year.
In figures, the chicken food giant laid forward 8% rise in profit – i.e. $391 million (£273 million) within initial three months of this year.
In accord with highlighting Chinese store sales, Yum claims a boost worth 6% as compared to the same Q in year 2015.
The news hiked *Yum’s shares by 4% in after TRADING session. As for analysts, they were looking forward to an estimate growth of 2.1% in comparison to the previous Q (a year ago) in a region, where Yum is the biggest Western restaurant brand.
(*owns also Pizza Hut and Taco Bell)
“KFC China had an outstanding Chinese New Year bucket promotion. This is a transformational year for our company as we remain on track to finalize the separation of our China business by year end.” – Chief executive Greg Creed
UPDATE: Currently, keeping in view its latest strategies for profitable business, Yum looks ahead to spin-off approximately 6,900 China restaurants by the end of this year – hence, to focus the company on U.S. functioning.
INSIGHT: Worth considering is that much of market position is being vulnerable due to presence of burger giant McDonald’s, in China (source: British Broadcast Corporation).
Exclusive reports found on Financial Times has stated Yum to be in discourse with KKR and other private equity funds for a sell-out of a minority stake in the Chinese business – largest division.